Natural Sugar Cane Hedge
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According to the Economist, "Brazil's sugar companies are lucky to have a natural hedge, in that when the sugar price is low many can produce ethanol instead. This can be consumed by motorists in the domestic market or exported for use in alcoholic drinks or other industries." This natural hedge allows sugar producers to guarantee a reasonable price for their crops, which allows them to make long term investment plans more accurately. …
SWOT Analysis Survey
SWOT Strength: Natural Sugar Cane Hedge
According to the Economist, "Brazil's sugar companies are lucky to have a natural hedge, in that when the sugar price is low many can produce ethanol instead. This can be consumed by motorists in the domestic market or exported for use in alcoholic drinks or other industries." This natural hedge allows sugar producers to guarantee a reasonable price for their crops, which allows them to make long term investment plans more accurately.
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