Late on Monday, two of Brazil’s largest sugar and ethanol producers released initial estimates of the damage caused by fires that have ravaged sugarcane fields in the country’s leading sugar-producing state.
Four individuals have been arrested on suspicion of starting the fires, which quickly spread across thousands of hectares of cane fields due to extremely dry conditions. The fires continued into the weekend in São Paulo state, Brazil’s largest sugar-producing state.
As per news report by Reuters, Raízen SA, Brazil’s largest sugar group, estimated that around 1.8 million tonnes of its sugarcane, including that from suppliers, were affected by the fires—around 2% of the total expected for its 2024-25 crop. In a securities filing, Raízen indicated that it does not anticipate significant losses as a result of the fires, as it is focusing on processing the damaged sugarcane to minimize negative impacts.
Caio Carvalho, a sugar expert with Canaplan consultancy, noted that while the burned sugarcane can still be harvested and processed, mills will need to act quickly because the quality of the cane deteriorates rapidly after burning.
Earlier, Raízen announced that it had resumed operations at its Santa Elisa mill on Sunday, following an evacuation and shutdown due to the fires last week.
Sao Martinho, another major Brazilian sugar and ethanol producer, disclosed in a securities filing that 20,000 hectares of its sugarcane had been affected by the fires. The company confirmed it would maintain its 2024-25 production forecast but warned of a likely reduction in industrial efficiency in converting the affected cane into sugar.
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