Ceres, Syngenta Agree to Collaborate on Sweet Sorghum Market Development
Ceres (NASDAQ: CERE) today announced that its Brazilian subsidiary Ceres Sementes do Brasil Ltda., has signed a sweet sorghum market development agreement with Syngenta (NYSE: SYT). The companies will work together to support the introduction of sweet sorghum as a source of fermentable sugars at Brazil's 400 or more ethanol mills.
Sweet sorghum is a hardy crop that can extend the ethanol production season by up to 60 days in Brazil. It can be grown on fallow sugarcane land and processed using the same equipment. Since it grows in just 90 to 120 days, it requires less water and other inputs than sugarcane. Last season, Brazilian mills planted Ceres sweet sorghum on more than 3,000 hectares (7,400 acres) — about the size of nine New York City Central Parks. Due in part to increased demand for ethanol and sugarcane shortages, Brazil's government recently announced in its annual agricultural plan for 2012-2013 that sweet sorghum would be considered a strategic crop.
Under the agreement, Syngenta and Ceres intend to collaborate on small-scale trials as well as larger demonstration-scale field evaluations with mills this season. Syngenta will provide its considerable agronomy resources