Abstract
The sugar and ethanol sector in Brazil is the most competitive in the world.
Brazil is the leading sugarcane producer with production in the 2007/8 harvest
in excess of 30 million tonnes and has what is considered to be the world' s
first sustainable biofuels economy - exports are close to 4 billion litres of
ethanol annually. Brazil, along with the United States, accounts for 70% of
the world' s ethanol production.
About 44% of Brazil' s revenue from the sector comes from sugar sales and 54%
from ethanol sales, with the remaining 2% from bioelectricity sold in the
domestic market. Sugar sales are split between the domestic and foreign
markets 36% and 64% respectively, while ethanol sales are dominated by the
domestic market (85%) with exports accounting for 15%.
Exports to USA are likely to increase as demand there outpaces supply. Europe
is a growth market, with The Netherlands importing large quantities of
Brazilian ethanol for blends. Other major importers are from Central American
countries.
Despite the recent decrease in exports, Brazilian sugar exports are likely to
increase in future due to the irregularity of sugar production in India.
Russia and some Southeast Asian countries may continue to increase imports of
Brazilian sugar in the coming year.
The 2008/9 harvest estimates are approximately 559 million tonnes of sugarcane
(industry use), up by 13% compared with the previous crop. To process this
level of production, around 30 new mills are expected to become operational
during the crop season, in addition to the existing 390 mills.
This rapid growth in the number of mills, combined with the upgrading of port,
pipeline, road and rail infrastructure, will enable Brazil to meet export
demand and supply the expanding domestic and Latin American market for fuel
ethanol. This important new study, researched and written by AGRA FNP, looks
at the key drivers and success factors in the sugar and ethanol sector and
whether Brazil, with the forecast expansion of sugar milling capacity, will be
able to supply the potential ethanol demand on the world market.
| 
View Cart
