Key Differentiation Strategies Adopted by Sugar and Alcohol Sector Companies

Effect of Production Costs on the Price per Ton of Sugarcane: The Case of Brazil

“…Furthermore, as a result of the Covid-19 pandemic which had an impact on inflation, the costs of agricultural inputs (most of them are imported) also increased and reduced the profit margins of the sugarcane suppliers and mills. In this sense, organizations have been facing a much more agile and competitive environment which demands new techniques of competition, market attitudes, and production models (Abreu & Amorim, 2018). Kotyza et al (2021) point out that the global financial crisis and the Covid-19 pandemic caused a substantial increase in stock market volatility.…”

“…In this sense, several studies have been carried out on the production costs of the main inputs for the production of sugarcane (Bigaton et al, 2015;Zilio & Lima, 2015;Gilio & Moraes, 2016;Martins et al, 2018;Rodrigues & Rodrigues, 2018;Amorim et al, 2019;Amorim et al, 2020). However, there is a gap with respect to the variation of the main costs of production of this raw material (inputs and labor), as well as the impact of such costs in the variability of the price per ton of sugarcane, which are latent issues for the sugar-energy sector.…”