Press release

May 23rd, 2013 – Cane fields in the state of Sao Paulo (SP) are displaying good physiological development. Heavier Rainfalls than the historical average from March/13 to the first half of April/13 will benefit the availability of cane ready to be crushed on mid-season.

This higher than normal precipitation until first half of April/13 had negative consequences on the 18 month planting program, which was interrupted several times. Many producers have changed the program, planting 12 month sugarcane. In general, planting is still delayed. Currently the State of SP is 21.6% behind schedule in relation to April 25th.

There are concerns that the lack of humidity from the dry weather of the last few weeks will impair the capacity to plant above of distributing vinasse capacity. Still, regions with abundant clay structure are presenting good levels of humidity, while some sandy soils are dryer.

During last month, in cane fields within SP, cane borer infestation has increased significantly, above average. On the order hand, “Cigarrinhas” has decreased. This is a natural behavior due to the last cycle of the pest.

Harvesting operations throughout the state began at full capacity on the second half of April/13, when the weather became dryer. First canes crushed were mainly biscane and and early-maturing canes.

Producers are very optimistic and satisfied about Agricultural yield performance at this moment. DATAGRO’s cane crush estimate for 13/14 crop at the Center South region is 9.8% higher than last season - 584.50 million tons this year versus 532.33 in 12/13.

The cane crushed until May 1st in the Center South region represents approximately 14,2% of the total volume to be processed during the crop. With TRS levels close to the same observed last year, more cane being crushed early on will help bringing down TRS levels on the weighted average distributed in the crop.