• Categories
  • Archives

Sugar Co-op Metamorphoses into Brazil’s Largest Sugar and Ethanol Producer

Copersucar, Brazil The largest sugar and ethanol cooperative in Brazil, Copersucar (Cooperative of Sugarcane, Sugar and Alcohol Producers of São Paulo State) informed on Wednesday, October 1st, that it had become a company and plans to triple its production in the next ten years.

Founded in 1959 Copersucar expanded operations and became one of the world's biggest private exporters of sugar and ethanol. Currently it has about 5% of the world sugar trade and, with its new legal status, will displace Cosan as the largest sugar and ethanol producing company in Brazil.

"The sugar and ethanol industry is expanding fast so it's important to grow to keep the relevance we always had," Copersucar CEO Luis Roberto Pogetti was quoted by Reuters.

Brazil's booming sugar and ethanol industry has been going through an aggressive consolidation in recent years with cane output expected to double in ten years but no more than 30 big groups will be in control of production, compared with around 200 currently.

The co-op was composed of 33 mills in São Paulo, Paraná and Minas Gerais states, which now become the shareholders of Copersucar's newly created holding company, Produpar.

Produpar intends to increase sugar cane crushing capacity to 200 million tons by 2018, up from 70 million tons this season, and increase its local sugar and ethanol market share to 30% in 10 years from 14% currently.

It also intends to buy sugar and ethanol from independent producers to be sold on the domestic and international markets. Turnover from this business, which will reach 200 million US dollars this season, is expected to double in 2009/10.

Pogetti said Copersucar's strategy of having long term supply contracts with foreign sugar and ethanol buyers will likely be strengthened in the future. The company has commercial contracts with some of the world's biggest sugar refineries and also with final ethanol consumers.

"In a market of increasing volatility… it's part of our strategy to invest in long term relations," he said.

About 70% of Copersucar's ethanol exports are to final destinations. In sugar, 80% of its sales are to refineries, most of them in the North of Africa, Middle East and Asia.

In the current crop Copersucar expects to sell a total of 4.3 million tons of sugar, up 22% from the previous season, and 3.8 billion liters of ethanol, up 18%.

The company's exports should reach 3 million tons of sugar, up 25% over the previous crop and 1 billion liters of ethanol, nearly 50% more than last season. Total sales are forecast to reach 2.9 billion US dollars.

Mercopress

Tags:

  • Show Comments (3)

  • ZonASIN Hunter

    Thank you for your entire effort on this website. My mum loves carrying out investigations and it’s really easy to see why. We all hear all relating to the dynamic medium you render useful tactics by means of your blog and in addition boost contribution from the others on that idea and our own daughter is certainly starting to learn a lot of things. Take advantage of the rest of the new year. You are carrying out a great job.

    https://www.youtube.com/watch?v=lm0Km9IjNgw

  • pRASAD NIMMAGADDA

    MANAGING DIRECTOR
    We need buy icumsa 45 sugar brazilian origin about 1200000 mts per annum. We need your contact details including your email id.

    Please reply to venturecap999@yahoo.com

  • CH.C.

    “The sugar and ethanol industry is expanding fast so it’s important to grow to keep the relevance we always had,”
    Expanding so fast that the more Brazil produces, the more companies have LARGER LOSSES !!!!!

    Great strategy !

    Why doesnt Brazil quintuple its production in the next decade ?

    You should !

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Malba Tahan, The Most Famous Arab Brazil Never Had

Júlio César de Mello Souza (1895-1974), better known as Malba Tahan and author of ...

Brazil: ‘No Nuclear Material Is Being Diverted’

Brazil’s Minister of Defense, José Viegas, declared today that the Brazilian government is offering ...

Lucky Brazilians! They Have Six Obamas to Choose From

Barack Obama is running for mayor in Belford Roxo, a little town close to ...

Brazil’s Fat Lady Can’t Sing – Act One

Whatever happened to the opera in Brazil? And why has Brazil produced no opera ...

Governor Serra Finally Admits He Wants to Be Brazil’s Next President

José Serra, Brazil’s main opposition leader and governor of the country’s biggest state of ...

Peru Leader Defends Strong South America in Brazil

In his speech, yesterday, at the opening of the South America – Arab Countries ...

Itaíº Doubles Profit to US$ 4.8 Bi Becoming Brazil’s Most Profitable Bank

Brazil's Itaú bank obtained record profits of 8.474 billion Brazilian reais (US$ 4.8 billion) ...

Lost Horizon

The elopement would happen on the wedding’s eve, the day when the old Manuel ...

Brazil Opens Market and Offers Zero Tariff to Poorest Countries

During the Progressive Governance Summit, in Pretoria, South Africa, on Sunday, February 12, Brazilian ...

Brazilian TAM Starts Daily Flights to Orlando

TAM Brazilian airline will begin operating its new daily flight to Orlando, Florida, on ...