Raging fires have burned 10 per cent of the Brazilian sugarcane fields belonging to the French cooperative Tereos, resulting in estimated losses exceeding $18 million, a senior executive said on Monday, reported Reuters.
Tereos is the South American country’s second-biggest sugar supplier.. Pierre Santoul, Tereos’ country manager for Brazil, stated that around 30,000 hectares (74,100 acres) of the company’s sugar fields have been burned, resulting in a financial impact of 100 million reais ($18.1 million).
Speaking at an event in Sao Paulo, Santoul expressed concern about the implications for the following season. “Our immediate concern isn’t the 2024/25 harvest but the next year’s (2025/26),” he stated, noting that extended dry weather could exacerbate the situation.
The fires have destroyed fields producing around 1.7 million metric tons of Tereos sugarcane, according to Santoul. Tereos operates seven plants in Brazil, all located in Sao Paulo state, the country’s leading sugar producer.
Industry group UNICA estimated that at least 230,000 hectares of sugarcane were affected by fires in Sao Paulo state during August, with ongoing fires and dry conditions impacting various regions of Brazil this month. There are also suspicions of arson.
Tereos executives have indicated that the fires might also affect the current crop’s sugar quality, potentially leading to a reduced amount of cane available for sugar production.
Cane plants typically last for five to six years, sprouting again after being cut and then growing for another harvest the following year.
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