Heavy rains in São Paulo have delayed BrasilAgro’s sugarcane harvest and could weigh on the operation’s profitability in the coming months. A unit that typically finishes crushing on October 30 is now expected to continue processing cane until December 20, and the company may leave some of the crop unharvested until the start of the next season.

CEO André Guillaumon discussed the disruption during a call with journalists about BrasilAgro’s first-quarter fiscal 2027 results. Persistent rain hindered fieldwork in September and forced the company to revise its harvesting plans. The São Paulo unit has around 170,000 tonnes of cane left to harvest, out of a planned seasonal total of more than 300,000 tonnes.

Conditions in Maranhão are different. After maintenance at the industrial facility delayed the start of the harvest, the operation increased its processing pace in October, crushing more than 215,000 tonnes—the highest October volume it has recorded. BrasilAgro expects to process another 190,000 tonnes in November and aims to make up some of the time lost early in the season.

Rain-related harvesting delays are also affecting other sugarcane-producing areas in Brazil’s Center-South region. Wet conditions can restrict access to fields and affect cane quality by lowering recoverable total sugars, or ATR, a measure of the crop’s sugar potential that influences grower payments and industrial yields. Datagro has previously estimated that more than 35 million tonnes of cane could be left in fields for processing in the following harvest because of the delays.

Sugar and sugarcane revenue at BrasilAgro totaled R$116.3 million in the first fiscal quarter, which ended in September, down about 10% from the same period a year earlier. Gross margin for the activity nevertheless rose from 14% to 17%, helped by lower unit production costs. Guillaumon also said ethanol prices were below the company’s earlier expectations.

The company is monitoring climate conditions as it plans for the next harvest, including the possible effects of El Niño and a potential transition to La Niña. Guillaumon said the implications of such a sequence remain uncertain.

Sources: CNN Brasil.