First of all, on the sugar and ethanol business, the area where we are with our sugarcane plantation in MatoGrosso do Sul is an area that is neutral to El Nino or La Niña so it doesn’t really affect to our own production, so it doesn’t have a clear consequence to our own production. But what we can see in La Niña is that center south in general is more dry and so the harvest will be shorter but also lower so as Renato explained before we expect a lower sugarcane production in center south as general and that means that is optimistic for prices of sugar and ethanol both. So, all in all for our sugar and ethanol business we believe it is a positive impact. Then when we go to the crops that is what has been more affected and is more affected by a La Niña year, we are already working on that so while we are negotiating the leases for the crops.
We are taking that into account and also when we present our planting plan the crop rotation and how we manage the crop rotation, we are also taking into account this potential La Niña year and so we can mitigate the impact. But in crops we always talk about mitigating the impact because you will always have some type of impact if we have a La Niña year. Then we moved into the dairy that for dairy is totally neutral we don’t see any effect for La Niña or El Nino. So, in general, we can say that for our production system and our specifics is neutral, a little bit positive because in general prices go up in La Niña because the rest of the production is affected with La Niña year. And then to the rice segment, that is the one that could be more positive if we take the lesson learned of the previous years because in this case rice is 100% irrigated.
So being 100% irrigated, if we have enough water, it is the ideal situation because in La Niña year you have more sunshine, more sun, more temperature and that helps for the evolution of the rice business. The point here is that you need to be with the reservoirs full and today we are with all the reservoirs full and we are very well prepared for next year if we have a La Niña year in the case of the rice segment. So all these investments we’ve been doing in rice are clearly paying off and we have learned lessons in order to plan the amount of hectares that we have enough water. So that’s why we are very if it is a La Niña year for the rice business is a very positive has a very positive impact. So that’s all-in-all the impact of what La Niña could be.
And then going to your second questions about this sustainable aviation fuel certification or the CORSIA certification that allows us to produce sustainable aviation fuels. I think that, it is important to mention here what had happened yesterday in the Brazilian congress. The Brazilian congress is approving with an important majority the law of the fuels for the future and this law fuels for the future is taking into account many things including this sustainable aviation fuel. So we believe that, all what we are producing in Brazil through our sugarcane production is totally aligned with this law that the congress is approving. First of all the biofuels are going to be more relevant the mix is increasing so they are in favor of biofuels and that is very important.
Then they are putting a sustainable aviation fuel target of 1% in 2027 and from there increasing to 10%, so that opens a possibility of a new market for all our ethanol, and we can certificate and being specific on your answer, we can certificate all what we have as a Bonsucro certification. So having all our Bonsucro certification allows us to produce more than 50% of our total ethanol production with the certification as of today, and of course all the other mills will also be certificated and this is a process so that is a very relevant. Then this law also talks about the biogas and the obliged to start mixing biogas with the gas consumption. So biogas is what we are producing and in which we are investing as Renato was explaining before through what we are taking out of the vineyards and so that is part of the same concept.
Then fourth talks about carbon storage and carbon storage means the CO2 being able to put it into this back into the soil and the area where we are producing is one of the areas of Brazil where you can do that because of the geological things that the or area that we have there. Then finally the whole law talks about the CO2 emissions since the very, very origin of the biofuel until the full consumption so in this whole chain if we think about CO2 emissions since the very beginning these biofuels coming from the sugarcane are the most efficient in the world that’s why we think all this law is very much aligned with all our long-term strategy in Brazil and in our sustainable production models in general not only Brazil.
Larissa Pérez: Okay. Thank you so much for the detailed answer. Thank you.
Operator: This concludes the question-and-answer section. At this time, I would like to turn the floor back to Mr. Bosch for any closing remarks.
Mariano Bosch: Thank you all very much. Thank you for participating in the call, and we hope to see you in our upcoming events.
Operator: Thank you. This concludes today’s presentation. You may disconnect at this time, and have a nice day.
