News International Sugar Journal

Brazil – Indebtedness exceeds annual revenue of sugar mills [Registered]

Debts of Brazil’s sugar and ethanol mills have increased to 110% of their annual revenues in 2014/15 (Apr/Mar), according to the sugarcane industry association (Unica). Revenues in 2014/15 are estimated at about BRL70 bln ($1=BRL2.46) while the companies are estimated to close the season with a total debt load of around BRL77 bln, said Unica’s technical director Antonio de Padua Rodrigues. Having already been highly leveraged, reflecting investments in expansion of new units, especially between 2003 and 2008, the plants continued take on more debt for the renewal of plantations and the mechanisation of the sugarcane harvest, said industry experts.…

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