Brazil’s Jalles Machado expects to allocate more sugarcane for sugar production, less for ethanol
Brazilian producer Jalles Machado anticipates a 12% increase in sugarcane crushing for the 2024-25 season, processing 8.23 million tonnes, up from 7.35 million in 2023-24. The company will allocate 50.6% of its cane to sugar production, up from 37.5%, and 49.4% to ethanol, down from 62.5%. Jalles Machado plans to invest 797.5 million reais, a 7.7% decrease from last year. Market analysts note a shift towards a higher “sugar mix.”
Brazilian sugar and ethanol producer Jalles Machado anticipates around 12% increase in sugarcane crushing for the 2024-25 season compared to the previous season, with a greater focus on sugar production, according to a securities filing by company.
Jalles Machado estimates it will process 8.23 million metric tonnes of sugarcane in the upcoming season, up from 7.35 million tonnes in 2023-24, meeting its previous guidance for total crushing volume.
The company plans to allocate 50.6% of its sugarcane to sugar production this season, compared to 37.5% in 2023-24. Ethanol production, on the other hand, is expected to account for 49.4% of the allocation, down from 62.5% in the previous season.
As per Reuters, market analysts predict that Brazilian mills will prioritize a higher “sugar mix” this season due to investments aimed at expanding sugar production capacity and the more favorable profitability of sugar over ethanol.
Jalles Machado plans to invest 797.5 million reais in 2024-25, representing a 7.7% decrease from the previous year’s investment.
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