Oct 26, 2010

John Deer Expanding Sugarcane Harvester Manufacturing in Brazil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

John Deere has announced plans to expand its sugarcane harvester manufacturing facility in Catalao, Goias. The factory was inaugurated in 1999 and it remains John Deere's only factory outside the United States dedicated to the manufacture of sugarcane harvesters. There are only two manufactures of sugarcane harvesters in Brazil and the demand is so great that customers must wait months to take delivery of a new harvester. John Deere is investing R$ 60 million over four years to expand the facility. The principal markets for these harvesters are Sao Paulo, Goias, Minas Gerais, Mato Grosso, Mato Grosso do Sul, and Parana.

The demand for sugarcane harvesters is so great because the Brazilian government has mandated the transition from hand harvesting to mechanical harvesting. The primary purpose of the transition is to eliminate the need to burn sugarcane fields before workers cut the sugarcane by hand. In order for the sugarcane to be harvested by hand, the dry leaves must be burned off ahead of time to facilitate the cutting by hand. These burnings result in increased amounts of pollution and particulate matter in the air, which can cause respiratory distress in nearby residents. They also release huge amounts of greenhouse gasses which the government is trying to limit.

Mechanical harvesting not only reduces the amount of pollution, it is also more economical and it is better for the soil because it returns organic matter to the soil and it aids in erosion control. On the down side, the transition to mechanical harvesting reduces the amount of workers needed to harvest sugarcane. It's estimated that one harvester replaces approximately 120 workers.

There are some exceptions to the requirement for mechanical harvesting. Small landowners will be exempt from the ban on burning and mechanical harvesting will not be required on steep terrain where mechanical harvesting is not possible.