Investor Presentaiton
Guidance on the product mix
In 2019/2020, given the increase of
13% in the ethanol prices and robust
demand, the biofuel has shown itself
to be more profitable than sugar
throughout the entire crop year. Thus,
we have directed our product mix to
the production of ethanol, which has
rendered the business more profitable.
For crop year 2020/2021, with the
decline in ethanol prices in the wake
of the dispute over oil prices, plus
the appreciation of the currency
rate, sugar is now providing higher
compensation and tends to be the
focus of production.
It is worth mentioning our ongoing
monitoring of scenarios and prices
of products.
We have a market intelligence area
whose responsibility is to project
the price curves for ethanol, sugar
and electricity. To that end, there is a
monthly analysis of the international
scenario, oil and gasoline prices and
exchange rate variances, among other
factors affecting the price curves for
ethanol and sugar. As a result, we are
striving to ensure better accuracy in
determining the products strategy for
the crop year.
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