Brazilian sugarcane farmers are increasingly considering a shift to alternative crops such as corn or soybeans if sugar prices remain weak. The warning was issued by José Guilherme Nogueira, chief executive of the sugarcane growers’ association Orplana, according to Reuters.
Rising production costs and declining profitability have already prompted farmers to cut back on investment in sugarcane plantations. Orplana represents around 12,000 growers across Brazil’s main sugarcane-producing regions, many of whom are reducing spending on fertilizers and other key agricultural inputs.
Nogueira said that without a recovery in sugar prices, producers may choose not to renew contracts with sugar mills. In that scenario, farmers are likely to favor crops such as soybeans and corn, which offer greater flexibility and more stable market demand both domestically and internationally.
The potential shift to alternative crops is expected to have only a limited impact on the 2026/27 sugarcane crop, which is currently being established. However, the effects of lower investment — including reduced cane crushing volumes — could become more evident in subsequent seasons if the trend continues.
According to data from industry group UNICA, Brazil had crushed 600.4 million metric tons of sugarcane by the second half of December in the current season, producing 40.2 million tons of sugar. Orplana expects output in the 2026/27 season to be only slightly higher or broadly similar to current levels, before the impact of reduced investment becomes more pronounced.
