Guilherme Cutillo

Guilherme Cutillo asked about the rationale behind BrasilAgro's shift in cotton productivity guidance, specifically what changes led to this, and the company's outlook for sugarcane recovery in the upcoming harvest following challenges in the previous one.

Answer

André Guillaumon, CEO of BrasilAgro, explained that the company is focusing cotton production on irrigated areas in Bahia, reducing rainfed cotton due to high volatility and capital risk, aiming for higher productivity. For sugarcane, significant efforts in nutrition and management, along with accelerated planting, are expected to drive recovery in the next harvest, despite sector-wide aging of plantations and concerns over current pricing.

Guilherme Cutillo from BTG Pactual inquired about the rationale behind the shift in cotton productivity guidance and the company's outlook for the upcoming sugarcane harvest, including expected recovery and market conditions.

Answer

André Guillaumon, CEO, explained that BrasilAgro is refocusing cotton production on irrigated areas in Bahia due to high volatility and costs in other regions, aiming for high productivity. For sugarcane, he detailed efforts in nutrition and management, accelerated planting, and control of pests, expecting a strong recovery in the next harvest despite sector-wide aging plantations. He noted a shift towards alcohol-based production in the sector and long-term optimism for sugarcane prices.