Brazil – Largest sugarcane producer in the world

Brazil is the third largest food producer in the world after China and the USA.

In periods such as pandemics and wars that directly affect the production and flow of food, Brazil becomes an important source of resources and foodstuffs.

Brazil is the world’s largest sugarcane producer, with São Paulo accounting for 55% of the country’s planted area.

The country has a competitive advantage in relation to other sugar producing countries. A large part of the sugarcane processing plants in São Paulo can choose to produce sugar or ethanol. The sector’s development took place thanks, among other things, to Brazilian government projects such as Proálcool.

Pro-alcohol in Brazil

Created in 1795, the National Alcohol Program, known as Proálcool, promoted research and development of alternatives to expand the energy matrix in Brazil, among them the production of Anhydrous Ethanol, used as fuel for motor vehicles.

Proálcool also allowed for the evolution of projects and technology that culminated in cars with a flex engine, launched in 2003.

This flexibility was also applied to mills that processed sugarcane, as over the years mills have modernized and adapted to produce sugar or ethanol.

Who determines whether Brazilian mills will produce more sugar or ethanol is the market. Based on demand, production is directed to one or the other.

Sugar Production in Brazil [ White Sugar, Brown Sugar… ]

Brazil is the world’s largest producer and exporter of sugar. It mainly exports raw sugar that can be refined and transformed into other derivatives.

Altogether, there are more than 400 sugarcane producing plants. The 172 mills installed in the state correspond to 42% of the Brazilian total and were responsible for 56% of the nationally crushed sugarcane.

SEASONALITY – 75% of sugar and ethanol production is concentrated from April to November. In December, most of the production units, especially those located in São Paulo, undergo maintenance. It remains for the plants in the north and northeast to maintain production and exports in the remaining months.

Sugarcane production in 2020 was estimated at 677.9 million tons by the Brazilian Institute of Geography and Statistics (IBGE) in the third forecast for the harvest. A drop of 1.8% compared to the previous month’s survey. Source: NOVACANA

Considering the type of sugar exported, most of the amount handled in 2020 is raw, with 26.83 million tons at an average price of US$ 276.17/t. White sugar totaled 3.96 million tonnes, sold at US$ 344.11/t.

“Brazilian sugar reaches all corners of the globe and helps fight malnutrition, being an important natural and accessible source of energy for people. It is a fundamental ingredient in food preparation to obtain flavor and consistency and is part of the culture and daily life of Brazilians”.

Main importers of Brazilian sugar in 2020:
– China and Algeria (raw sugar)
– Venezuela and Yemen (refined type)
In order for you to understand a little more about this commodity that is so important to our economy, we will explain below some characteristics of sugar. Check it out.

New possibilities

Ethanol and sugar are not the only products into which sugarcane can be processed. In 2000, a plant with the capacity to produce 50 tons of biodegradable plastic derived from sugarcane began operating in Brazil. The technology for manufacturing its raw material, polyhydroxybutyrate (PHB), was developed with the participation of the Technological Research Institute (IPT) of the São Paulo government.

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