A rise in sugar output in Brazil helped Glencore keep its agricultural production growing despite poor weather in many of the countries in which it farms, and difficult biodiesel markets.

The Swiss-based commodities giant said that production from its farming operations fell by 18.5% to 674,000 tonnes last year.

While the group failed to detail output, its farms are in the former Soviet Union and South America, regions where drought sapped crop output last year.

In biodiesel, Glencore's output fell by 6.2% to 534,000 tonnes.

The group, which in 2011 mothballed its Schwarzheide plant in Germany, warned last year of a "negative biodiesel production margin environment in Europe".

Extra capacity

However, Glencore's oilseed crushing operations raised volumes by 38% to 2.78m tones, boosted by the acquisition of three plants, in the Czech Republic, Poland and Ukraine, besides the completion of a Hungarian site.

A further plant, in Timbues, Argentina, began crushing in December.

And in sugar, the volume of cane crushed at its Rio Vermelho operations in Brazil soared 39% to 1.26m tonnes, spurred by expansion which "continues to progress on schedule".

Glencore, when buying in late 2010 for some $80m a 76% stake in Rio Vermelho, of which it now owns 100%, said that it planned to double the site's crushing capacity, then 1.1m tonnes.

Rio Vermelho is also being upgraded to supply energy to the grid through burning off bagasse, the remnants of sugar production, with the first phase of the so-called cogeneration activity to open in the second half of this year.

Mixed year

Last year offered an improvement to Brazilian cane processors in terms of volumes, with rains and new plantings boosting the harvest, but mills suffered lower prices for what sugar was produced, with futures falling 19% to 22 cents a pound on a year-average basis, according to Glencore.

Bunge, the US-based agricultural trading giant, last week unveiled a 4.2% rise to 8.59m tonnes at its Brazilian sugar and bioenergy division, but a 20% drop in revenues, to $4.66bn, and a 57% plunge to $64m in profits.

Meanwhile, Singapore-based Olam International, under pressure over its debts, revealed it had ditched plans to buy sugar operations in Brazil, and raised questions over a sugar refinery scheme in Nigeria too, potentially saving nearly Sing$500m in investment spending.

Copper decline

Glencore's overall agricultural production rose by 13.2% to 7.43m tonnes, with the group reporting rising output in coal and oil too.

However, volumes declined in some key base metals, such as copper and zinc volumes falling, besides, among precious metals, in gold.

Glencore shares closed down 0.5% at 384.5p.