Press Release

Tereos’ sugarcane milling grew and achieved 18.8 million tons in this harvest season

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Ended in the first half of November, the 2019/2020 harvest season records an increase of 7.5% in comparison to the last period.

Olímpia, 27th November 2019 – Tereos Sugar & Energy Brazil, one of the leaders in the Brazilian sugar-energy industry, processed throughout the 2019/2020 harvest 18.8 million tons of sugarcane in its seven units, a growth of 7.5% compared to the preceding period. The company also recorded an increase of 7% in agricultural yield in the season, with an average of 11 tons of sugar per hectare.

In this harvest season, the company closed the cycle with a mix of 60% sugar and
40% ethanol. Production yielded 650 million liters of ethanol and 1.6 million ton of sugar.
Despite the challenging weather conditions in the region where Tereos’ units operate, the Group had a greater increase in sugarcane volume than the Center-South regional average, which was 6.2% higher this season than in 2018/2019.

“This year, we endured the tensest climatic variation of the past ten years,” affirmed Jacyr Costa Filho, Tereos Group’s director for the Brazil Region. Rainfall below the historical average of the last decade, hoarfrost, and temperature above the normal during the middle and end of the harvest characterized 2019.

More efficiency for agroindustrial operations
The Group has been investing in agricultural technology to detect significant
performance losses and make quicker, real-time improvements, which has allowed a growth in operational indicators.

In the industry, indicators increase has also been consistent. Regarding the past five harvest seasons, Tereos Sugar’s units grew 9% in the industrial overall equipment effectiveness (OEE) rate, reaching 96.5% this year.

“Thanks to investments in maintenance and the productivity boost over the last few years, Tereos is achieving quite consistent operational results, with better agricultural income and enhanced industrial performance,” commented Costa Filho. “In this cycle, we have begun harvesting the fruits of the recent-concluded investments, such as the Cruz Alta unit’s new boiler, which heightened cogenerated energy availability with greater environmental efficiency,” he added.

Another highlight was launching operations of the 2018-signed partnership with VLI, a logistics company that integrates railways, intermodal terminals, and ports to transport 1 million tons of sugar per year. It is set for early next season the delivery of two sugar warehouses at terminals Guará and Tiplam, at the Port of Santos, also deriving from the agreement between the two companies.