Sao Paulo-based consultancy Datagro expects sugar production in Brazil in 2009/10 (May/Apr) to rise to 35.2 mln tonnes from 31.6 mln in the previous season (+11.4%) and also above an earlier 2009/10 estimate of 34.9 mln. Datagro explains the rise in output with high demand for Brazilian sugar because of a global supply shortage and lower freight rates. However, a lack of credit and a drop in sugar prices may spur Brazilian farmers to use fewer pesticides and fertilisers, reducing yields in the next two years, it was added.
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