Marcon Logística Portuária

Promising harvest and drop in ethanol sales lead Brazil to expand sugar production and exports

The Brazilian sugarcane harvest 2020/2021 is still in its infancy, but it is promising and should ensure that the country has a large availability of sugar for export. According to the “Biweekly monitoring of the Centro-Sul harvest” until May 16 released by the Union of the Sugarcane Industry (Unica), the crushing of sugarcane until the first half of May exceeded 103 million tons, an increase of 21.67% over the same period of the 2019/2020 harvest.

Of the total, 45.3% of the processed sugarcane went to sugar production, a percentage that in the 2019/2020 harvest corresponded to 32.19%. These data refer to the production of the Center-South of Brazil, which corresponds to approximately 89% of the national total.

The change in the production mix between ethanol and sugar is related to a change in market demand. According to the member of the executive committee of the Tereos Group and president of the Superior Council for Agribusiness of the Federation of Industries of the State of São Paulo (Fiesp), Jacyr Costa Filho, the dispute over oil prices between Saudi Arabia and Russia earlier this month March and the global pandemic resulting from covid-19 reduced oil and gasoline prices, which affected ethanol’s competitiveness. The product is used as fuel in Brazil. In addition, there was less demand for fuels in general.

At the same time, some countries, such as China, have again imported large quantities of sugar to replenish their stocks. The same is true for Muslim countries, due to the end of Ramadan, which ended on May 23.

Costa says that Brazil should export between 28 million and 30 million tons of sugar in this harvest and guarantee the equivalent to 50% of the global demand for the commodity. This is not only because Brazilian production and exports are growing, but because Thailand, which is the second largest exporter in the world, is facing a crop failure due to one of the greatest droughts in the last 40 years.

The technical director of Unica, Antonio de Pádua Rodrigues, says that Brazil should recover in 2020/2021 the record levels of sugar production registered three years ago. A total production of 38 million tons of sugar is expected in the 2020/2021 harvest, of which 36 million will be produced by plants in the Center-South and approximately 2 million to 3 million tons per unit in the Northeast. This total represents an increase of approximately nine million tons on sugar production in 2019/2020.

Both Rodrigues and Costa note that sugar prices in the international market are low, around US $ 0.10 to US $ 0.11 per pound, but the favorable exchange rate compensates for the low prices. “Prices fell, but the devaluation of the real against the dollar led to a gain in competitiveness and offset costs,” says Costa.

Costa notes that the Arab countries are already major importers of sugar, a commodity that in 2019 corresponded to 20% of Brazilian agribusiness exports. “The Arab countries are a very important destination for sugar. They are the third largest destination for agribusiness exports and are gaining relevance for Brazilian companies as they are also partners in investments ”, he says, recalling that there are Brazilian companies with industrial units in the Gulf and investments from Middle Eastern countries in the sector of animal protein from Brazil.

Padua notes that the Brazilian sugar and alcohol sector is also versatile and capable of meeting different demands. It can either produce ethanol for the supply of vehicles, produce alcohol for the purpose of disinfection, as occurs in greater volume this year, or produce sugar for domestic consumption and for export.

“Brazil has a differential in relation to other countries, which is to have 85% of the plants capable of producing sugar or ethanol and optimizing production”, he says.


Source: Comex do Brasil



Em Destaque


Quer saber mais?

Entre em Contato

Siga a Marcon

Mercado & Novidades

Últimas Notícias

Feb 19 2024

Brazil-China trade starts 2024 with strong increases in exports and imports

Trade between Brazil and China began the year marked by a significant increase of 53.7% in Brazilian exports, which totaled US$ 7.769 billion,...
Feb 14 2024

Ports of Paraná exceed 65 million tons handled in 2023

Portos do Paraná broke a new handling record in 2023, surpassing the 65 million ton mark. The CEO of Portos made the announcement of the historical...
Feb 07 2024

With support from India, exports of cane sugar yielded 21% to the people of Paraná in 2023

Paraná's sugar producers had a good year in 2023. In terms of values, exports of the product grew by 21%, even though the volume destined abroad...
Jan 16 2024

Exports from Paraná grow 13.7% in 2023, better performance in the South and Southeast

With revenue of US$25.2 billion from sales to other countries in 2023, Paraná established a new annual export record. The value is 13.7% higher than...
Jan 02 2024

Mapa coordinates Brazil’s participation in 15 international food and beverage fairs in 2023

The Ministry of Agriculture and Livestock (Mapa) coordinated, in 2023, Brazil's participation in 15 international food and beverage fairs. The...
Dec 26 2023

National Transport Confederation highlights growth of Portos do Paraná

The National Transport Confederation launched the 3rd volume of the Brazilian Cargo Terminals - Port Gateways series and highlighted in the...
Dec 18 2023

Paraná ports break historical record with 60 million tons in 2023

Portos do Paraná announced this Tuesday (12) a historic milestone: the public company registered more than 60 million tons handled in 2023, the...
Dec 11 2023

Ports of Paraná holds second panel at COP28

Portos do Paraná participated this Wednesday (06), in the second panel of the Conference on Climate Change (COP28), in Dubai, in the United Arab...
Dec 04 2023

In 10 months, Ports of Paraná records 15% growth in export movements

Operational strategies were essential to meet the large market demand and export more than 35 million tons through Paraná ports From January to...
Nov 27 2023

Portos do Paraná is three-time champion in ANTAQ award

For the third consecutive time, Portos do Paraná, a public company owned by the Government of the State of Paraná, was awarded for respecting...

Quem acredita na Marcon

Nossos Clientes