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Biological assets
 12 Months Ended
Jun. 30, 2019
Biological Assets [Abstract]  
Biological assets

9.Biological assets

 

   2019   2018 
Cattle   37,122    34,053 
Grain plantation   12,860    2,203 
Cotton plantation   8,606    - 
Sugarcane plantation   64,528    59,790 
           
Total   123,116    96,046 
           
Current   99,881    61,993 
Noncurrent   23,235    34,053 

 

The amounts of expenditures with plantation and tilling of crops are substantially represented by expenditures with the formation of harvest such as: seeds, fertilizers, pesticides, depreciation and manpowers used in the crops.

 

The area (hectares) to be harvested corresponding to the biological assets is as follows:

 

   Planted area (Hectares) 
   2019   2018 
         
Grains   8,766    1,322 
Cotton   976    - 
Sugarcane (i)   27,843    29,955 
    37,585    31,277 

 

(i)For sugarcane the area considered above refers to the total to be harvested in all the future cuts, considered in the cash flow for calculation of fair value of biological assets. This area includes the hectares leased from Brenco and Partnership IV, according to contracts executed on May 8, 2015 and February 7, 2017, respectively.

 

Changes in agricultural activity

 

   Grains   Cotton   Sugarcane 
At June 30, 2017  1,385       36,875 
             
Expenditures with plantation   81,080    -    - 
Expenditures with tilling   -    -    130,197 
Fair value variation   54,892    -    43,952 
Harvest of agricultural produce   (136,396)   -    (151,234)
Effect of conversion   1,242    -    - 
                
At June 30, 2018   2,203    -    59,790 
                
Expenditures with plantation   173,367    13,323    - 
Expenditures with tilling   -    -    123,230 
Fair value variation   18,062    2,619    34,511 
Harvest of agricultural produce   (181,411)   (7,336)   (153,003)
Effect of conversion   639    -    - 
                
At June 30, 2019   12,860    8,606    64,528 

 

Changes in cattle activity

 

   Heads of cattle (in number)   Cattle 
At June 30, 2017   8,644    13,435 
           
Acquisition/birth costs   14,680    14,311 
Handling costs   -    9,415 
Sales   (2,006)   (4,332)
Deaths   (325)   (476)
Consumption   -    239 
Effect of conversion   -    1,461 
At June 30, 2018   20,993    34,053 
           
Acquisition/birth costs   8,981    7,917 
Handling costs   -    11,955 
Sales   (8,750)   (17,668)
Deaths   (357)   (581)
Consumption   (2)   (5)
Effect of conversion   -    (75)
Change in fair value   -    1,526 
At June 30, 2019   20,865    37,122 

 

Quantitative data about cattle activity, expressed in heads of cattle

 

   Consolidated 
   Consumable cattle   Production cattle 
At June 30, 2018   -    20,993 
At June 30, 2019   4,896    15,969 

 

Fair value hierarchy at June 30, 2019

 

   Amount   Fair value 
Sugarcane   64,528    Level 3 
Cattle   37,122    Level 2 
Grains   12,860    Level 3 
Cotton   8,606    Level 3 

 

The significant non-observable inputs used in the measurement of the fair value of sugarcane, grains and cotton classified as Level 3 in the fair value hierarchy, along with an analysis of quantitative sensitivity on June 30, 2019, are as follows. There were no reclassifications among the levels during the year.

 

Description  Evaluation method  Significant non-observable inputs  Variation of non-observable inputs  Increase in inputs  Sensitivity of inputs to fair value
Decrease in inputs
                
Sugarcane  Discounted cash flow  - Yield  Yield: 37,92 to 112,76 tons per hectare.  An increase in yield generates a positive result in the fair value of biological assets.  A decrease in yield generates a negative result in the fair value of biological assets.
      - TRS (Kg of sugar per ton of sugarcane)  Total recoverable sugar: (TRS) 137 to 142 per ton of cane  An increase in TRS generates a positive result in the fair value of biological assets.  A decrease in TRS generates a negative result in the fair value of biological assets.
Corn  Discounted cash flow  - Yield  Yield: 4,8 to 5,8 tons per hectare.  An increase in yield generates a positive result in the fair value of biological assets.  A decrease in yield generates a negative result in the fair value of biological assets.
Cotton  Discounted cash flow  - Yield  Yield: 3,7 tons per hectare.  An increase in yield generates a positive result in the fair value of biological assets.  A decrease in yield generates a negative result in the fair value of biological assets.

 

Gain (loss) from changes in fair value

 

   2019   2018   2017 
Grains   18,062    54,892    4,302 
Cotton   2,619    -    - 
Sugarcane   34,511    43,952    11,532 
Cattle   1,526    239    (3,568)
    56,718    99,083    12,266