Raízen invests in efficiency to have your major crop in 2017/18

São Paulo-With the acquisition of plantations of old distillery and the increase in productivity in the sugar cane and in the third, provided by Raízen hopes to grind up to 63 million tons in 2017/2018-would be the best performance of the company.
Still, the processing would be below the company''s installed capacity of 68 million tons, because "sugar cane", said the President of Raízen, Luis Henrique Guimarães during the Cosan Day 2017, held this Tuesday (21) in São Paulo. In Brazil, the next sugarcane season officially begins in April.
The Executive noted that currently there are two dedicated teams in the group, which is among the main players in the sugar ethanol sector: a focus on mergers and acquisitions (M&A, the acronym in English); another working on improvement of outsourced products.
The productivity gain, supported by cost reduction, must be the cornerstone for the return on invested capital (ROIC, the acronym in English) follow a line of Ascension. The expectation is that this performance grow three percentage points in 2016/2017 cycle, compared to the previous one, to 10%. This is the most advance among the companies of the Group Cosan, which covers the segments of fuels, gas and logistics.
Data from the sugar cane industry Union (Unica), published by Raízen, show that the average productivity of the company accumulated 10.3 ATR [Total Recoverable Sugar] per hectare, in the first nine months of the current crop. In the South-Central in General, this number stayed at 10 ATR per hectare during the period.
In the last four years, expenditure on planting and deal fell 32.5% and only increased from 2015/2016 for the current season because there was no renewal of plantations. On agricultural logistics (cutting, loading, and transportation), the low was 17.7% from 2012/2013. Already industrial retreated 15.6% disbursement on the same basis.
"A quiet revolution in the company [Raízen]. We can build a level of operational efficiency with very important increase in the ROIC, which creates a very positive impact on the sector as a whole, "emphasized the Vice President of finance at Cosan, Marcelo Martins.
With the progress of the measures, the President''s expectation of Raízen is that the total milling capacity is reached in five years.
Production mix
Guimaraes said the company will focus on "optimization of sugar production in the coming years, because the commodity tends to pay more than the ethanol". According to the President, the company has secured 60% sugar harvest display 2017/2018, with 20% higher prices.
The prospect of Raízen takes into account a deficit of 5 million tons in the current season that ends on September 30, compared with another of 10 million in 2015/2016, Foundation that gives support to the sugar price on the New York Stock Exchange.
In the case of ethanol, the change in price policy practiced by Petrobras opens to the free market. "Raízen has to advance competitiveness in this environment," said the President.