SCA Brasil<\/strong> is specialized in the physical biofuels market, providing ethanol and biodiesel trading services, consulting in market intelligence, and acquisition of inputs and logistics services for agribusiness companies.<\/p>\n Martinho Ono<\/strong>, CEO of SCA Brasil<\/p><\/div>\n AgriBrasilis – Will the fires in sugarcane fields in the State of S\u00e3o Paulo increase fuel prices?<\/strong><\/p>\n Martinho Ono –<\/strong> The combination of high temperatures, low humidity and winds caused fires throughout the sugarcane region, not restricted to the State of S\u00e3o Paulo.<\/p>\n We do not believe that hydrous ethanol prices will increase for the following reasons:<\/p>\n We understand that for this harvest season the milling loss will be small, but with greater consequences for the next season.<\/p>\n Therefore, the production and supply of ethanol will not vary greatly, with concerns about rising prices.<\/p>\n AgriBrasilis – How are the fires affecting the plants?<\/strong><\/p>\n Martinho Ono –<\/strong> The mills affected by fires are forced to change their planned milling rhythm, having to prioritize the cutting of these sugarcanes, many of them early. There will also be additional unforeseen expenses for the recovery of the burned area, including replanting. In some cases, the mills will have to renegotiate sugar supply contracts.<\/p>\n AgriBrasilis – The dry weather was already considered harmful to sugarcane before the fires. What is the quality of the crops that were not affected by the fires?<\/strong><\/p>\n Martinho Ono – <\/strong>The lack of rain since the beginning of the year has already been reducing yields, projecting a smaller harvest. Mills have reported difficulty to produce sugar due to impurities and low yield in Tonnes of Sugarcane per Hectare (TCH).<\/p>\n AgriBrasilis – What is the status of the biodiesel market in Brazil?<\/strong><\/p>\n Martinho Ono – <\/strong>With the blend of 14% biodiesel in diesel oil, we have increased the share of this biofuel, which was celebrated by the production sector. Optimism was reinforced by the estimated increase in the blend for the coming years, with the possibility of reaching a 25% blend, as provided for in the Bill \u2013 \u201cCombust\u00edvel do Futuro\u201d (Fuel of the Future). However, we have found many irregularities in quality, since some distributors have not mixed biodiesel as required by the ANP (National Petroleum Agency) regulations. This is because biodiesel costs are higher than diesel A.<\/p>\n![\"\"](\"https:\/\/agribrasilis.com\/wp-content\/uploads\/2024\/09\/Martinho-ono-etanol-1-1.jpeg\")
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“We understand that for this harvest season the milling loss will be small, but with greater consequences for the next season”<\/em><\/strong><\/span><\/h4>\n<\/blockquote>\n