Cosan cuts Raizen sugar cane crushing estimates

Aug 17, 2011 - Brazilian sugar and ethanol producer Cosan (SAO:CSAN3) has axed its projections for the volume of processed sugar cane by Raizen, its ethanol joint venture (JV) with Anglo-Dutch oil major Royal Dutch Shell (LON:RDSA, AMS:RDSA), in crop year 2011/2012.
The move was provoked by the decreased sugar cane offer in Brazil, the CFO of Cosan, Marcelo Martins said yesterday.
According to data presented during a phone conference, Raizen's crushed sugar cane volume is now seen to reach between 53 million tonnes and 56 million tonnes, against a previous projection of between 56 million tonnes and 60 million tonnes.
"The Brazilian Sugarcane Industry Association (UNICA) has revised down its estimates for 2011/2012 and Cosan has also observed an expressive reduction of the sugar cane crushing. Thus, we have made some adjustments in the projections," Martins noted.
The estimates for Raizen's sugar offer were also reduced. The company is now seen to produce between 3.9 million tonnes and 4.3 million tonnes in 2011/2012, instead of between 4.2 million tonnes and 4.6 million tonnes like earlier.
Also, the expected ethanol sales were reduced to 2.3 billion litres and the energy co-generation -- to up to 1.4 million MW.

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