Brazilian consultancy Datagro estimates that up to 41 sugar and ethanol mills representing a total crushing capacity of 60 mln tonnes of sugarcane will not start operating in the 2012/13 (Apr/Mar) campaign. This represents about 9% of the total plant inventory of 440 units.
Of the total, 36 units are located in the Centre/South and five in the North/Northeast. For the most part the plants have energy difficulties which have been aggregated by weather-induced production shortfalls. According to Datagro sources, some of the plants may return to the market once cane supplies have normalised.