In the last few months, there has been a great interest in buying our assets. Brazilian agriculture is not separate from other things, but in a certain way farmers still have a good liquidity. We had a year; we’re talking about margins of 28%, 32%. When we look at this, we cease — I made a calculation this morning, when we look at the cost of production of a hectare of soybean last year, R$31, R$32, to produce a hectare. Today the price has dropped to R$28. And with this, I always say that what brings liquidity to the farmer is a good harvest even more than good prices. I always say the farmer tolerates greater fluctuations in price, but they don’t tolerate fluctuations in performance. So we’re looking at a very high harvest in the Midwest and in the state of Bahia, in Bahia, we should have a record harvest.
So we — there’s a lot of liquidity and that we’re going to capture this. This is for the sale of farmland. So we will probably have more sales in the next few months. We’re looking at purchase too. We — so you can expect that the company, everyone asked me, how much will you sell? And I say, look at the last five years, this is what we want. So it’s important to say that during the last year, we made purchases in 2021. Now we had a small sale, but it becomes important in the last six months, it became important.
Thiago Duarte: Thank you. Very clear.
Ana Ribeiro: Thank you, Thiago. Now Pedro Fonseca.
Pedro Fonseca: Good morning, Andre, Gustavo, Ana. Thank you for the opportunity. First, a follow-up of Thiago’s question. I’d like to confirm about sugarcane. In terms of production productivity, it makes sense to think of a recovery in the next harvest going back to 2100 which you had estimated for the harvest in 2022. Is that correct? And the second concerning what Andre mentioned in the beginning of the presentation, that the company was seeing new prices. So today, we have a good situation in performance. What can we expect in terms of hedging in the short-term hedging? Do you see an opportunity in a certain commodity or not? Thank you.
Andre Guillaumon: Thank you, Pedro. Okay. I’m sure that we’re recovering. Yes, there’s a detail. It’s difficult to see this impact, but when we had the Coronavirus, beginning of the pandemic, no one knew what would happen. And like every company, we also be disaffected the planting of sugarcane. And also we discussed this, this week. So in 2020, we preserved cash. Now we — last year, we planted — we are planting an important amount of sugarcane. Yes. We’re expecting a recovery for this reason and also a recovery because we’re in making important investments in irrigation. Irrigation for our plantations in Maringá, we’re installing more piping, more irrigation equipment and sugarcane. Sugarcane grows with fertilizer, sun, and water.
So we should have a good result. In the Midwest, sugarcane is doing very well. We expect a good recovery in Midwest, which is what is happening in the center in South, Brazil going from 540, going back to 740 million tons. Now in terms of performance, in the morning, we had a meeting and we discussed this point this morning. Yes. We’re making progress with more hedge — more hedging because we begin, we have — we’re very cautious until we get the first estimates. And today, we began to receive the estimates, the farms that will begin harvesting the next 15 days where estimates were already made. These estimates are favorable. So there is a trend to sell more especially soybean and still — and with this price — a good price in Chicago. So this is the recovery.
