Brazilian sugarcane growers’ association Orplana has observed a reduction in investment by farmers amid low sugar prices and rising production costs, its CEO José Guilherme Nogueira said in an interview on Thursday, reported Reuters.
Orplana represents 35 sugarcane farming associations across Brazil’s main sugarcane-producing region, covering around 12,000 growers. According to Nogueira, many of these producers are cutting back on spending related to sugarcane cultivation.
“We are seeing a decline in investments in sugarcane plantations, mainly due to higher production costs and reduced net revenue,” he said.
The cost-cutting measures include reduced expenditure on fertilizers and other essential agricultural inputs required for crop development, Nogueira added.
He noted that if sugar prices remain weak, farmers may opt not to renew contracts with sugar mills and could shift to alternative crops such as soybeans or corn.
While these decisions are expected to have only a limited impact on the 2026–27 sugarcane crop, which begins in the first half of this year, their effects—particularly lower cane crushing volumes, are likely to become more visible in subsequent seasons.
“Everything indicates, given the size of the planted area and the current situation, that producers will stop investing, with the impact becoming evident by 2028,” Nogueira said.
Data released by Brazilian industry group UNICA on Wednesday showed that 600.4 million metric tons of sugarcane had been crushed in the current season through the second half of December, resulting in sugar production of 40.2 million tons.
According to Orplana, output in the next crop is expected to be only marginally higher before the impact of reduced investment begins to take hold.
“For the 2026–27 season, we expect a slightly larger harvest than the current one, or very similar depending on rainfall, as the harvest is still being formed,” Nogueira said.
