BRAZIL: Biosev is boosting ethanol production as never before
Published: 06/13/2018, 5:23:37 PM
Brazilian sugarcane processor Biosev has never produced as much ethanol as it is currently doing, amid a scenario in which investing in the biofuel production is more profitable than sugar, according to Brazil's Broadcast Agro newswire.
"We are challenging the limits of some units and, with investments to adjust processes, we've never produced as much ethanol," said Rui Chammas, president at Biosev.
Hydrous ethanol is priced at about US$0.137 per pound, 11% higher than sugar in the first future position at New York ICE Futures US which closed at US$0.1235 on Tuesday.
Biosev has hedged 84% of its sugar production for the 2018/19 crop at BRL0.55 (US$0.13) per pound, or 20% above the current international price of BRL0.45 (US$0.11), according to Chammas.
He said that the 2017/18 harvest had very good operational results, with the best crush in seven years, despite the net loss of BRL1.27 billion (US$341.73 million).
Biosev crushed 32.67 million tonnes of sugarcane in 2017/18, up 3.6% from the previous harvest.
Sugar production reached 1.89 million tonnes, down 0.7%, and ethanol output increased 13%, to 1.29 billion litres.