Sugar-cane stands to appreciation of grains in the State of São Paulo
Gazeta Mercantil - 07/11/2008
The high prices of grains were not enough to prevent the even greater increase of the cultivated area of sugar-cane, which gained another 100 thousand hectares in the State. According to information of the Institute of Agricultural Economics (IEA), the area went from 4.83 to 4.93 million hectares, an increase of 2% compared to the previous year. The grains had an increase of 0.97% compared to 2007, a total of 1.77 million hectares. "The state has already consolidated as a sugar and alcohol pole. But since the prices of sugarcane are not good, I believe this growth will decrease", foresees João de Almeida Sampaio, secretary of Agriculture of the State of São Paulo. He believes the high prices of the agricultural commodities may cause the plants to carry out rotation of crops. He said the industries need to renew between 15% and 20% of the sugarcane field every year and in the last three years, they were letting the land rest because of the low price paid for the grains. The secretary sees a new trend of integration between the sugar and alcohol sector and the cattle industry. "We believe the keeping of animals in pens has grown in the State. Producers are making use of the sugar cane bagasse to feed the cattle", he explained. For Jacqueline Bierhals, agroenergy manager of AgraFnp, the sugar cane area is already stabilized and should hardly lose room to other crops. "Regardless of a loss of R$ 10.00 (US$ 6.25) per produced ton, the sugar and alcohol sector may not lose room". She also said that even with grains much more profitable than the sugar cane, the producer will not change crops from one year to another. Bierhals said that the culture that loses most area for sugar cane is the cattle industry. According to data of the IEA, the area intended for the cattle industry decreased 500 hectares in 6 years (from 10.3 million hectares, in 2000 to 9.8 million hectares, in 2006). But it added that the situation of uncertainties should make producers wait until the last moment to decide what to plant in the following year. Prominence among grains goes to wheat. The survey of the current wheat harvest of the state of São Paulo points an increase in the cultivated area of 40.82 thousand compared to the previous period, to 75.23 thousand hectares, an increase of 84%. In production, it grew 102%, from 93 thousand to 190 thousand tons. It is the greatest area growth ever seen in the state.