The challenge of productivity in the sugar industry

Achieving higher yields per hectare in a field dominated by smallholdings is one of the main objectives set by the federal government, producer organizations, and industries involved in the sector. However, sugarcane production in tons per hectare over the past six years has decreased by 12.6%, from 70.94 in 2019 to 62.03 in 2024.

The loss in sugar has been even greater, with agro-industrial yield decreasing by 20.8% over the same period, from 7.99 tons of sugar per hectare in 2019 to 6.33 tons in 2024, according to data from the Conadesuca portal.

The causes affecting production are multiple; however, drought, to varying degrees in the producing regions, has been the main cause, coupled with the rising cost of inputs, primarily fertilizers.

Increasing productivity from one harvest to the next is no easy task, as the effects of drought trigger other adverse factors, such as plant loss. When this level reaches more than 15%, it is economically more profitable to replant. However, both producers and the industry value crop renewal, as it means a lower volume of sugarcane for the mill's immediate harvest and a lower investment requirement.

It also implies an immediate loss of flow for the producer, causing renewal to be postponed and the sugarcane field to be dominated by plantations older than 8 years, which are characterized by depopulation, a higher incidence of weeds due to spaces without vines, more hosts for pests and which require a greater investment in their maintenance, which, even with a better technological package, will not be effective, since it is applied to a smaller number of milling stalks and in the end the yield can be maintained and hardly improved.

Given the lower rainfall scenarios for supplying dams and rivers, from which water is subsequently taken for irrigation, and the erratic distribution during the crop cycle, which is not what is required for crops in rainfed areas, it is necessary to invest in new crops, accompanied by agricultural practices that ensure crop moisture, soil fertility, plant density, and a favorable biotic environment to prevent pest development.

FIRA's second priority objective, after financial inclusion, is to promote increased productivity and efficiency by expanding producers' technical capabilities, capitalizing them, and leveraging technology. Therefore, it promotes the complete and gradual renewal of crops with new or replanting crops, the modernization of irrigation, and the renewal and modernization of machinery and equipment, primarily for harvesting. It also provides bank guarantees and funding at competitive fixed rates and terms consistent with cash flows and cycles, through refinancing loans or leasing, through a network of financial intermediaries.

On the technological side, we are promoting the introduction of some components of Agriculture 4.0 to the sector, democratizing access to satellite monitoring for producers of any size. This is a tool for more timely crop care, especially for the large number of producers who supplement their income by engaging in complementary economic activities, such as professionals and merchants, among others, who do not have the opportunity to be physically present on the property.

For the sugarcane industry and organizations, the use of satellite monitoring of sugarcane fields at the mill allows them to improve harvest planning and operations, preventive monitoring for pest control campaigns, and irrigation scheduling, primarily.

The use of biofertilizers as a complement to chemical fertilization and the optimal use of this input with the support of drones in its application are other successful initiatives of the institution, contributing to the productivity, profitability, and sustainability of sugarcane cultivation.

*Jose Salazar Cayetano López is a specialist at the FIRA office at the state residence in Veracruz. “The opinion expressed here is the author's own and does not necessarily coincide with the official views of FIRA.”