Plants are bound to raise capacity

The milling capacity of Brazil's cane, the largest global producer of sugar, may run out in two years if the investments in increased industrial capability not monitor the expansion of crop, expected to be record already this year, warned experts told Reuters.
Without relevant investment in new processing capacity in recent years, is consensus among industry representatives that the sugar industry is experiencing a time-out period to invest in its expansion, after the global credit crisis that affected the finances of businesses and following a period of low ethanol margins not attracted new capital.
This deadline for investment because the size of the next crop (2013/2014, which runs from April to March) are very close to current capacity, and the time to roll out a new drive is at least two to three years. Even for expansion of a unit the term is one year.
The industry estimate is that Brazil's current installed capacity is close to 700 million tons, while initial estimates point grinding about 650 million tonnes in 2013/2014 cycle, which begins in April in the Center-South.
"In 2014, to confirm the growth of the crop, the industrial capacity may be already exhausted ... We are already in a situation in which investment in new units are needed, "said Artur Yabe, biofuels Manager of Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
He recalled that recent investments in plantations-not accompanied by new capital for industrial expansion--already will bring results in harvest started in April this year, which tends to repeat itself in the season 2014/15.