Insight Focus
- Regular rains help the development of sugarcane fields.
- Competition with other crops makes it difficult to renew leasing contracts.
- Field input prices are an issue.
How is the Development of the Sugarcane Fields?
The cane fields are in excellent vegetative state. The development is very good due to the rains and the treatment carried out after the harvest. A point of attention are fungal diseases and pests, such as the sugarcane borer (Diatraea saccharalis) and the leafhopper (Mahanarva fimbriolata), which develop quickly with this favorable climate.
Heavy rains in the cane fields in Teodoro Sampaio – SP
Was Cane Planting Greater than in Previous Years?
Yes, planting was higher in 2022. And due to the summer with regular and high intensity rains, the expectation of higher production and productivity tends to be higher as well, due to having a newer cane field. There has been a decrease in areas in recent years that are now in the process of recomposing/renovating the fields (areas that had been returned due to financial issues are now being recovered), which contributes to higher production expectations.
How is the Planting Preparation Going for the next Crop?
We are in the ground preparation phase. The rain has hampered the progress of services, but still on schedule. This year we had greater difficulty in renewing lease contracts and contracting expansion areas, due to competition with other crops, mainly soybeans and peanuts.
How do you Explain this Competition?
As soybeans are priced high, when converting the value into BRL/ha, soybeans are very competitive with sugarcane. Peanuts, on the other hand, pay a more expensive rent than sugarcane. So, it’s a matter of price and income value that make them attractive. In addition, they have the advantage of being annual crops, so the lessor does not remain in the same contract for 5 years, as with sugarcane.
In the region of Teodoro Sampaio (border with Paraná) the question of competition with other crops is less common, but in the region of Araçatuba/Queiroz/Tupã it became more noticeable, mainly with peanuts.
Border between soybean and sugarcane plantations (Teodoro Sampaio – SP)
What Will be your Main Challenges for the 23/24 crop?
The main challenges this year will be related to input prices. Despite the rise in agricultural commodity prices, the terms of trade are getting tighter. A larger amount of sugarcane is needed to buy the same amount of inputs, such as fertilizer, chemical pesticides, fuels/lubricating oils and machinery. Difficulties regarding land leasing will also continue.
