Sugarcane is losing space for soybeans, corn and peanuts in São Paulo’s countryside amid the crisis aggravated by the coronavirus pandemic, according to Brazil’s O Estado de S. Paulo.
Sugarcane is no longer seen as such an attractive crop after the recent fall in prices and demand in the country amid the drop in international oil prices and the crisis related to COVID-19.
Farmer Fernando Escaroupa decided to reduce his exposure to sugarcane at its planted area of 535 hectares, increasing soybean plantation.
Farmer Ueslei Cavatão, who has a property in the north of São Paulo state, has also been reducing his sugarcane crop in the past seven years as many mills face financial challenges in the region.
If ethanol demand doesn’t recover and remains firm after the pandemic, many producers may need to reduce sugarcane crops further.
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