Agribusiness: Brazilian sugar consolidates global market leadership in pandemic

BRAZILIAN SUGAR – Last year alone, exports of the commodity increased by more than 70%; understand why the coronavirus crisis is among the main explanations for this growth

Brazilian sugar represents around 20% of world production, according to the Ministry of Agriculture. With a volume 40% greater than that produced in the previous season, Brazil should continue to be, this year, the largest producer of the commodity in the world. More than half of the national production is concentrated in the state of São Paulo. But maintaining the lead has not been easy. In the 2018/2019 season, after decades at the top of the rankings, the country lost first place to India, its main competitor. In the following harvest, Brazil regained the position, but the dispute was fierce. In the current season, 2020/2021, Brazilians are expected to continue in the lead, with production estimated at 41 million and 800 thousand tons. This opens up a considerable advantage, as the production of the Indians should be around 31 million tons.

But if, on the one hand, the status of the world’s largest producer was threatened, on the other, when it comes to exports, Brazil is the isolated leader. Currently, it is responsible for 45% of global sugar exports. In 2020, sales to the foreign market increased 72%, from 18 million to 31 million tons. According to analysts, the growth reflects the greater direction of sugarcane to sugar production, as there was a drop in global ethanol consumption during the pandemic. In addition, the prolonged drought in the country also contributed to the boom in exports, which allowed the increase in the concentration of sugars in sugarcane and, with it, the higher industrial yield, and the restrictions of supply by large producing countries, such as Thailand .

The main destinations for Brazilian sugar, in raw form, were China and Algeria, and Venezuela and Yemen, of the refined type. Despite the importance of the commodity for Brazilian agribusiness, specialists warn. The production of ethanol in the context of environmental sustainability, the sustainable management of the sugarcane culture itself and, also, the weight of sugar in the adoption of healthy eating routines are debates that are gaining increasing importance in the global scenario and that can interfere with the standards of consumption in the coming years. It’s explained?

Por Lívia Zanolini08/02/2021

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