Cosan Ltd., is the top sugar producer in Brazil. There are several reasons why they are optimistic about the sugar business. Other than the large market in China developing a "sweet tooth", Cosan also ferments sugar into ethanol which could be used as an alternative fuel.

The outlook for the company seems great with demand likely to outstrip supply. In the coming IPO, this is the plan for their proceeds:

"Cosan expects to raise $1.6 billion from the sale of 100 million shares, or almost $1.9 billion if the underwriters exercise their options. It plans to spend more than $1 billion of that on two massive projects that will expand its cane-crushing capacity and ethanol output.

About $325 million will go for developing power plants for five of its mills. Another $100 million will fund the purchase of mechanical harvesters for its sugar cane. About $50 million will be used to increase crop yields and reduce production costs. About $25 million will go into field stations to identify sugarcane varieties suited to different regions of Brazil. The rest will go toward general corporate uses."

(note: this is not a call to buy shares, just sharing this info and for records).

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