National Federation of Cooperative Sugar Factories Limited
An ISO:9001 Certified Organization
National Federation of Cooperative Sugar Factories Limited
An ISO:9001 Certified Organization

MD, NFCSF attends Sugar & Ethanol Brazil 2019

‘Sugar & Ethanol Brazil-2019’ an international conference was held on 8th-9th May, 2019 at Sao Paulo, Brazil. The conference was organized by F.O. Licht to discuss policy, production and demand in global Sugar and ethanol (BioFuels) markets.

Millers, cane growers, ethanol producers, buyers and investors from across the world participated in the conference. Shri Prakash Naiknavare, Managing Director, National Federation of Cooperative Sugar Factories Ltd. participated on behalf of the federation.

The key highlights of the conference are as follows:

Speakers and Subjects

Name Designation Organization Topic
Jaime Finguerut Director Institute of Technology for Sugarcane Spoke on latest technologies for the sugarcane developed by Brazil.
Ernest Carter Senior Economist for Biofuels US Department of Agriculture (USDA) Spoke on Global ethanol trade
Evandro Gussi CEO UNICA – The Brazilian Sugarcane Industry Association Perspectives of  Brazil’s Government and Governance for the Brazilian sugarcane industry.
Prakash P. Naiknvare Managing Director National Federation of Coop. Sugar Factories Ltd. Spoke on Indian sugar – an ever rising suspense
Stefan Uhlenbrock Sr. Commodity Analyst F.O. Licht Spoke on the Global sugar balance sheet and prospects
Luiz Gustavo Junqueira Figueiredo Commercial Director Usina Alta Mogiana Introduced new concept of RenovaBio in Brazil.
Pedro Mizutani Managing Director Raizen Spoke on Future of the vehicle matrix – electric or biofuels.
Guilherme Bellotti de Melo Director Agonegocio Spoke on creating environment for investment in the sugar and ethanol industry.
Mauro Mattoso Head of Biofuels and Food Industry Department BNDES – Brazilian Development Bank Spoke on funding alternatives for biofuels investments under RenovaBIO context
Alex Battu Sales Manager Polymer Technology Sulzer Chemtech AG Introduced new alterative to add value on sugar via Polylactic acid (PLA)
Francisco G. Gomes Cargill Risk Management Cargill Elaborated on strategic options to consider when buying or selling sugar and ethanol
Arnaldo Correa Director Archer Consulting Explained how to manage price rick for sugar and ethanol
Ricardo Tomczyk President Executive UNEM Spoke on corn to ethanol increasing capacity
Leandro Alves de Almeida Director Commercial Logum Logistic Explained on investment in pipelines to improve ethanol’s logistical efficiency
Bernardo Silva Executive President ABBI Elaborated on RenovaBio stimulates for cellulosic ethanol development in Brazil
Marcio L. Perin Land & Bioenergy Coordinator IEG / FNP Spoke on Sugarcane competitiveness and investment opportunities in the farmland market in Brazil


Gist of Presentations / Discussions

Global sugar production in ensuring season is estimated to decline by 12 Lakh tons and arrive at 1855 Lakh Tons, in which Brazil’s share will be 283 Lakh Tons and its cane usage for the mill will be only 37% and the balance cane will be used for ethanol.  Brazil will produce more sugar only if and when the global price goes above 13 cents per pound which are currently range bound between 12 to 12.5 cents per pound.  India continues to be top producer expecting to produce 294 Lakh Tons in the ensuing season, which is a drop from previous season produce due to drought, cutting in planting and in area.  Thailand’s sugar production will also decline from 146 Lakh Tons last year to 127 Lakh Tons due to poor cane price and shift to Tapioca and Cassava.  EU’s new production is estimated to be around 171 Lakh Tons despite area under beet reducing but making good by increased productivity.

Polylactic Acid (PLA) is the latest polymer technology evolved by Sulzer from Switzerland and TechnipFMC from Italy.  This total recyclable Polymer is manufactured by value addition of sugar.   This polymer is widely used in petro-chemical sector and its market growth has registered 15 to 20% YOY.  The process involves fermentation of sugar into Lactic acid which further forms lactide  and  finally produces PLA.    Any quality of sugar can be ideal raw material for PLA.  In my opinion, India’s record surplus production and excess inventory can ideally be used for this latest value addition technology of PLA.   Both the Companies referred above are ready to share the technology with interested Indian millers / Associations.

RenovaBio is modern market driven  approach for  climate improvement.  Brazil is targeting 10.1% reduction in CO2 by year 2028 and its CPIO carbon credit is tradable reduction of each ton of carbon.  900 ltrs. of ethanol manufactured can earn one CPIO.   This new concept to concur the threat posed by global warming is catching up fast  not only in Brazil but all over the globe.