Sugar Cane Shortage’s Continue To Impact Brazil’s Biggest Sugar Producer – The seriousness of these trends was underscored by a recent Reuters News’ report on Raizen, the biggest sugar and ethanol producer in Brazil. Raizen recently said it will stop production at its Bom Retiro mill in southeastern Brazil for two years because the severe drought had caused a shortage of cane.
A Raizen representative said it was no longer economically viable to keep the mill running, especially with low global sugar prices. Since 2008, some 80 cane mills in Brazil have shut down and 67 went bankrupt because of lower sugar prices and shrinking profit margins. Nine other mills are expected to close in 2015, according to industry association Unica.
As was reported late last year, falling cane harvests have meant higher prices. The volume of cane harvested fell sharply, to 34.4m tons – down 11.6% on the first half of October 2014, and a 12.7% drop year on year – amid an acceleration in plants closing their crushing season early and talk of a lack of cane.