Configuration of the supply link of the sugar and alcohol supply chain in the region of Mata Norte de Pernambuco

Abstract

The sugar and alcohol chain has significant importance in the Northeast region and has been undergoing a restructuring process in recent years. The supply link is shown to be one that tends to present greater challenges. In this sense, this study aimed to understand how the supply of sugar cane is configured in the region of Mata Norte in Pernambuco. The methodological basis was qualitative research and the data collection instruments used were observation and interview. The main results relate to the conditions of the sugar and alcohol sector in Mata Norte; the suppliers' perception of the government and union associations and the cooperative's performance in managing a plant; and the visions of small and large producers. It was evidenced that the sugar cane supply link is going through great difficulties, since small producers have difficulties in maintaining production that generates high costs that they are unable to subsidize. In addition, the power exercised by the mills can affect the sector, since suppliers, due to a lack of options, need to shape the chain, however, the mills themselves are having difficulties keeping them up and running.