Abstract
Brazil is the world’s major sugarcane producer. In 2018/19, the country will have produced about 47.34 million tons of sugar and 58.8 billion liters of ethanol. Sugar and ethanol are produced in the same production process and the definition of both quantities is pre-established to sugarcane agro-industry. The purpose of this paper is to identify how managers define the production mix of sugar-ethanol in an agro-industry and how this decision adds value to its operations. The results showed that the searched mill adds value to its production through responsiveness and flexibility while orienting the production to sugar and/or ethanol according to the most profitable market during the moment of the decision making.
Highlights
Brazil has cultivated sugarcane since the 16th century (NOGUEIRA; CAPAZ, 2013)
The country is the biggest producer of sugarcane and sub products like sugar and ethanol (MINISTRY OF AGRICULTURE, LIVESTOCK AND SUPPLY - MAPA, 2016)
We concluded that the Total Recoverable Sugars (TRS) contracts are the main object that influences the responsiveness of this Mill, once it defines the kind of production that will be chosen - ethanol or sugar, or both - the respective volumes and the changes during the process
Summary
Brazil has cultivated sugarcane since the 16th century (NOGUEIRA; CAPAZ, 2013). The country is the biggest producer of sugarcane and sub products like sugar and ethanol (MINISTRY OF AGRICULTURE, LIVESTOCK AND SUPPLY - MAPA, 2016). The use of ethanol as fuel has been mandatory since 1931, but a blending with gasoline and pure ethanol has been commercialized since 1975 (NOGUEIRA; CAPAZ, 2013). Due to flex-fuel cars - vehicles that can use either gasoline or ethanol - the sugarcane agro-industry has been considered as strategic. Despite the concerns about the impacts of sugarcane agro-industry in food reduction and soil contamination, this sector is growing in Brazil. During the 2018/19 crops, the country will have produced 47.34 million tons of sugar and 58.8 billion liters of ethanol (MAPA, 2016)
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