This publication presents the agro-industrial production cost projections for the sugarcane and energy sector for the 2017/18 harvest in the Center-South region of Brazil. Characterized by a decrease in harvested area and productivity, this harvest is expected to show an increase in total sugar production costs and a decrease in ethanol production costs. The cost of sugarcane is expected to be 0.2% higher than in the previous harvest. Despite the positive margins expected for sugar sales due to financial hedging practices, the 2017/18 harvest brings a warning sign with the accelerated fall in prices on the international free market.
