World’s biggest sugar producer says outlook for industry is sour
Cosan, which controls top producer Raizen Energia in a joint venture with Royal Dutch Shell, is cutting investments in sugar cane amid a global glut of the sweetener and Brazilian government policies that hold down the price of ethanol, said chief financial officer Marcelo Martins.
Returns on capital from the company’s sugar and ethanol operations have plunged to below 10%, he said. “Reinvestment in the sector will be made only if returns become satisfactory and we don’t see it happening now,” Martins said.
