Press release

2012, August 16th – The Center-South (CS) region accumulated rains in May and June well above the normal average (+11.4% and +393.5%), followed by dry weather in late July (-13.0%). In the North-Northeast region (NNE) the drought persisted mainly in the states of Alagoas and Pernambuco, showing what may be the emergence of the phenomenon El Niño.

The higher than expected rainfall in the Center-South brought an increase in agricultural yield, with possibility of a better planting output and for an extended period, which will mostly carry into the 2013/14 crop season.

However, the weather condition caused a drop in accumulated industrial yield as well as an excessive increase of mineral impurities, causing a rise in maintenance costs and generating drops on sugar extraction rates. Another factor was the delay in sugarcane crushing in the Center-South during the initial harvest period.

DATAGRO has identified an increasing number of producers that intend to leave some of the crop areas without harvesting (leftover cane) given that producers must avoid harvesting sugarcane during rainfall season (Nov-Feb). DATAGRO estimates a significant amount of leftover cane for the 2013/14 harvest.

About DATAGRO

DATAGRO is the largest ethanol and sugar consultancy in the world. Through innovative analysis, provides excellent tools to assist in a full comprehension of the market, aggregating value to the commercial and strategic positioning of our clients and partners, such as producers, fuel distributors, banks, governments and investors. DATAGRO has assisted the Brazilian government in initiates related to energy planning, ethanol and sugar deregulation, trade negotiations and disputes. DATAGRO is also assisting the development of ethanol and biofuels strategies in various parts of the globe.