During the 2023/2024 harvest season in the Central South Region, the sugarcane processing industry reached historic levels of milling, which resulted in a considerable decrease in fixed costs associated with industrial production. Especially the costs related to labor and maintenance saw notable reductions, driven by the increase in production. Labor costs in the industrial sector dropped from 9.59 R$/tc in the previous harvest to 8.06 R$/tc in the current one, representing a decrease of -15.95%. Similarly, expenses related to industrial maintenance decreased from 6.42 R$/tc to 5.71 R$/tc, a reduction of -11.06%.
Furthermore, the effective recovery of various global supply chains played a significant role in reducing costs associated with chemical inputs, fuels, and lubricants used in processing. The total cost of industrial inputs decreased from 6.06 R$/tc to 5.63 R$/tc, reflecting a variation of -7.09%.
As a result, according to data from the Preliminary Closing, the industrial processing cost closed the 2023/2024 harvest season at 26.9 R$/tc, representing a significant reduction of -15.3% compared to the previous harvest, which closed at 31.85 R$/tc.
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