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Rodrigo Simonato

Executive Manager of Institutional Relations at Tereos Açúcar e Energia Brasil

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The effective breaking of limits
Co-author: Suzeti Jara Ferreira, Marketing Director at Tereos Açúcar e Energia

Imagining reaching and maintaining sugarcane production at 100 tons per hectare, which seems simple today, could not be done without all the innovation and evolution, in the last 50 years, of the sugar-energy sector having been pioneered by big names, who built the best and largest agribusiness production in the world.

Of these names, the Canavieira Technology Center is certainly an emblematic example of pioneering and innovation in sugarcane cultivation. Originally created in 1969 as part of the Sugar and Alcohol Institute, the Sugarcane Technology Center has become a reference in research and technology, playing a crucial role in the development of new technologies and more productive and resistant sugarcane varieties. The Canavieira Technology Center also has a role as a governance model. All together, it guaranteed an increase in productivity of 100 tons per hectare.

This greater production per unit area is historically a key indicator evaluated in any type of cultivation as it directly affects cash flow, increasing revenue and diluting fixed costs. Over the last 15 years, the moving average productivity of the main crops in Brazilian agribusiness has shown different trends, since this simple relationship is derived from a complex combination between management, speed in adopting new technologies, specific cyclical issues, expansionist movements, among other intrinsic factors in each market.

In general, corn and soybean crops have shown average productivity gains of approximately 40% and 20% respectively. On the other hand, for the cultivation of sugar cane there is a different trend, which reflects, within this historical context, the impact of the occurrence of a series of factors detracting from production such as the intensification of harvesting and planting mechanization, sectoral debt, consolidation of business groups and increase in production scale, the expansion of cultivation in more restrictive production environments that are poorly adapted to the varieties previously available, an exponential increase in the intensity of pests and weeds, etc., which imposed the great challenge of breaking the sectoral productivity level.

The effective disruption in productivity occurs in the speed of adoption of new technologies linked to gains from research and the development of new products. In this sense, the Sugarcane Technology Center has the vision of doubling the productivity of Brazilian sugarcane fields in 20 years.

This vision is based on four strategic pillars:
1. More potential: addressed by genetic improvement and the selection of sugarcane varieties with greater productive potential. In this sense, this pillar is supported by a series of differentials and investments that aim to continue consistent genetic gains of at least 3% per year in tons of sugar per hectare. Among these differences, the following stand out:
1. The maintenance of the largest germplasm bank in the world, located in the south of Bahia, with more than 5,500 varieties;
2. More than 1,500 crossings carried out annually, meeting different regional objectives;
3. Improvement program occurring simultaneously in 7 producing regions in Brazil, seeking the selection of regional materials, adapted to specific soil and climate conditions;
4. Agile and robust pipeline that shortens the classic process from 15 to 8 years, allowing faster and more assertive delivery of varieties to the sugarcane sector;
5. More than 200 trials planted per year seeking to develop and evaluate the genotype-environment interaction of promising materials;
6. Emphasis on health and disease resistance with new strategies and evaluation methodology, promoting the selection of a greater number of clones with high health;
7. Incorporation of younger parents, capturing higher levels of genetic gains; and
8. Optimization of digital data management and use of artificial intelligence, allowing the generation of the largest bank of genotyped varieties in the world, enabling a deeper genetic understanding of sugarcane, consequently resulting in a more assertive selection of varieties.

2. More protection: with the use of biotechnology, shielding sugarcane fields against attacks by key pests and resistance to herbicides. In 2017, the Sugarcane Technology Center launched the first variety resistant to the sugarcane borer, a pest that annually generates losses exceeding R$ 5 billion due to industrial losses of sugar and ethanol caused by direct and indirect damage, management cost and sectoral coverage of this caterpillar. Currently, the portfolio of Bt varieties consists of four products that meet the main demands in technical and agronomic positioning of the sector. In the future pipeline of biotechnology products, in the next harvests it is expected to launch the second generation of biotechnology products, resistant to the sugarcane borer (Diatraea saccharalis) and weevil (Sphenophorus levis) and glyphosate tolerant.

3. More adapted: linked to agronomic management that allows the expression of the varieties’ full productive potential. On this front, actions range from the correct positioning of varieties to the use of equipment that is less aggressive to sugarcane fields, digital agriculture, new formulations, etc.

4. Faster: through the development of a planting system using artificial sugarcane seeds, reducing the complexity of planting, costs and, mainly, accelerating the adoption of new technologies.

In summary, the Sugarcane Technology Center's vision of doubling sugarcane productivity by 2040 is based on a holistic approach that combines genetic innovation, biotechnology, advanced agronomic management and more efficient, innovation-accelerating planting practices. These strategies have the potential not only to increase production and efficiency, but also to generate positive economic impacts, and in fact break productivity levels, economic operational costs and boost Brazil's competitiveness as a world leader in sugar production and ethanol sugar.

The Sugarcane Technology Center is not only an example of success in research and innovation in agribusiness, but also a model of how governance and strategic involvement of the private sector can drive sustainable development. The history of the Sugarcane Technology Center and its contribution to the evolution of agriculture in the State of São Paulo are indicative of how applied research and effective management can result in significant advances for Brazilian agribusiness as a whole. Its legacy serves as a valuable paradigm for other sectors seeking modernization and sustainability.