Cargill and Grupo USJ to triple cane processing in Brazil

American agribusiness company Cargill and Brazilian sugar-cane processor Grupo USJ have entered into a joint venture (JV) called SJC Bioenergia in order to triple sugarcane processing in Brazil to 15 million metric tonnes by 2020.

The new partnership incorporates the industrial assets of Grupo USJ in the state of Goiás, Brazil, which includes the São Francisco mill in Quirinópolis and the Cachoeira Dourada mill that is currently under construction in the same municipality.

The two partners will share the management of SJC Bioenergia on a 50:50 basis and will also inherit sugarcane supply agreements held with local farmers.

Currently, the two mills process 5 million metric tonnes of sugarcane to produce 170Ml of ethanol and 420,000t of sugar each harvest, in addition to 350,000MW of energy a year.

In 2013, SJC Bioenergia will have the capacity to process up to 7.5 million metric tonnes of sugarcane, and produce an additional 200Ml of ethanol and another 200,000MW of electricity.

SJC director Ingo Kalder said that the plans to expand the Cachoeira Dourada and São Francisco mills in the following years will enable the company to double crushing capacity to 15 million metric tonnes of sugarcane.

"We will do this by adding modules of 2.5 million metric tonnes every two years, which will place SJC Bioenergia among the largest producers of sugar and ethanol in Brazil," Kalder said.