T here is no bad weather
Sugarcane cultivation and industrializa-
tion is almost a world of its own within the
context of all other supply chains of Brazil-
ian agribusiness. Its cycle feeds upon itself
in such a way, among the various links of
the sector –each one, nevertheless, relying
on the efficiency of the whole sector – that
this business never stops. Planting and
harvesting proceed simultaneously, and
the same holds true for processing and the
fulfillment of market demands.
Concentrated in the South Central re-
gion and in some localities in the North-
east, the sugarcane plantations account for
a huge part of the nation’s wealth, a real-
ity that dates back to the colonial times,
when sugar was one of the basic items of the
businesses with the mother country. As the
centuries went by, far from losing its allure,
sugarcane gained more
relevance and importance,
including its role on the
balance of trade. More re-
cently, sugar, which has
always been the most
known product of this
segment, was joined by
ethanol, or alcohol des-
tined for the vehicles
powered by this fuel.
With this double ap-
titude, the versatility of
the gains from this activ-
ity has equally increased
considerably. It is up to
the entrepreneurs to take
decisions in accordance
with the profitability per-
spectives or econom-
ic returns, and they can
equally decide to which
niches they want to des-
tine the biggest portion
of their production, for
sugar or ethanol. And
they could even alter this
destination on the spur of
the moment, while harvest proceeds, or in
line with client demands.
Nevertheless, keeping the limits of sugar-
cane cultivations within these two industri-
alized products would be foolish. Although
they continue as flagships of the business-
es and pillars of every company, even as di-
rectly responsible for the hefty foreign in-
vestments registered over the past decade,
showing great confidence in the consolida-
tion of the market for biofuel, there is need
to consider and hold in high regard the pro-
duction of energy. The latter might be one of
the most revolutionary elements in our na-
tional socio-economy, seeing that this ener-
gy is produced from the waste generated at
the production of sugar and ethanol, mean-
ing, from the remains of the process which,
after all, would even imply in a problem, in
view of the need to dispose of the sugarcane
bagasse, leaves and other remains.
Therefore, with the transformation of
this waste into energy, the company ful-
fills its own needs and has the chance to
earn income from the surplus, negotiating
it with the national power network. The
entire society benefits from what, in a way,
would turn into a problem for the supply
chain. In the meantime, research works
and prospection into new technologies
are allowing for new development stages,
with the production of ethanol from sug-
arcane leaves, for example. Without over-
looking the fact that this plant gives origin
to countless essential products suitable for
the rhythm of modern life.
Finally, but not with less national and
international expressiveness, it is from sug-
arcane that cachaça is
made, a beverage that has
become a symbol of Bra-
zil throughout the world.
With its name defini-
tively protected as a dis-
tilled beverage produced
in Brazil, it projects the
Country before an ample
and competitive market.
And at moments like the
Olympic Games, in Rio de
Janeiro, in 2016, it is sup-
posed to conquer new
aficionados among the
tourists that have decided
to attend the event.
Therefore, there is
reason enough to say that
there is no badweather in
the supply chain. One of
the links of the sector will
always be making head-
lines. And 2016 will be no
exception, as shown by
the edition of the Brazil-
ian Sugarcane Yearbook.
Happy reading!
Sugar, ethanol, energy,
cachaça and an array of other
products attest to the
importance of this activity
Inor Ag. Assmann
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