Prospects for sugar not so sweet

Resumo

IF THE CURRENT BRAZILIAN economic situation makes most productive investment projects very costly, sugar industry projects are even more expensive. Already dozens of sugar mills have closed, and the economic crisis has pushed others to file for bankruptcy, with debts estimated to total some US$80 billion. The industry is waiting for the government to define its policies so it can work out a recovery strategy. “The important issue is what is expected of ethanol—this is a decision that the sector cannot make,” says Elizabeth Farina, who has been Director President of the Brazilian Sugarcane Industry Association (Unica) since late 2012. Farina reiterates the productive potential of ethanol in Brazil and criticizes government intervention in fuel pricing, pointing out, “Sugar mills are still bleeding.”