Brazil’s São Martinho posts 8.9% drop in 2021/22 cane crushing due to drought

RIO DE JANEIRO, BRAZIL – São Martinho (SMTO3) sugar and ethanol company is expected to process 20.5 million tons of sugarcane in the 2021/22 season, down 8.9% compared to the previous crop due to the impacts of drought in Brazil, the company said on Monday.

São Martinho pointed out that the average total recoverable sugar (ATR) will reach 146 kg/ton, in line with the previous crop, and stressed that the result for crushing “reflects the severe drought in the country, momentarily affecting productivity of our sugarcane fields.” According to the company, the 2021/22 harvest will yield less sugar than the previous one.

São Martinho expects to allocate 42% of its cane to sugar production, compared to 47% in 2020/21. Consequently, the company’s sugar production should drop 18.7% year-on-year to 1.2 million tons, while ethanol production will shrink only 0.5%, to 1.013 billion liters.

The more favorable production mix for biofuel takes into account “current and expected market conditions throughout the harvest,” São Martinho said.