Sugar production receded 6.9 % in
the world in the 2015/16 growing season
After years of excessive sugar in the
global market, leaner times are ahead. Pro-
duction began to recede, whilst consump-
tion kept rising, generating a global defi-
cit in the 2015/16 crop year, and reducing
stocks. This decrease has also occurred in
Brazil, global sugar producing leader, and
largest producer of sugarcane. In the mean-
time, more ethanol is being produced,
which in Brazil, second biggest producer of
this fuel, is extracted from sugarcane.
The 2015/16 global sugar producing sea-
son, according to final figures published by
the US Department of Agriculture (USDA),
registered a reduction of 6.9%, remaining at
164.9 million tons. It was the smallest result
in the past five years, due to the severe effects
of the well-known El Niño phenomenon, in
all major sugarcane producing countries, es-
pecially in Asia, according to information re-
leased by that department, publicized by the
National Food Supply Agency (Conab).
Consumption, led by India, continued
rising and reached 171.8 million tons, which
ended up generating a deficit of 6.9 million
tons, according to the same source. The In-
ternational Sugar Organization (ISO) came
up with an almost similar number (6.65 mil-
lion tons). As a result, according to USDA
data, the ending stocks of the growing sea-
son suffered an expressive reduction of 8
million tons, of which 2.8 million tons in the
European Union, third biggest producer,
where sugar is made from sugar beet.
Scarce availability of the commodi-
ty pushed up prices in the global mar-
ket, a fact that tends to hold through the
2016/17 growing season. The forecast is
for a resumption in production, but with-
out reaching the levels of the 2014/15 cy-
cle. In May 2016, USDA officials estimated
a 2.7-percent growth in supply and 1.1% in
consumption, which is supposed to gener-
ate a deficit of 4.3 million tons and further
stock decreases (especially in Asia). In late
June, however, consultant Plinio Nastari,
president of Datagro, had already been
projecting a deficit of 7.1 million tons.
On the other hand, with regard to eth-
anol, global figures went up, thanks to the
major producers, the United States and Bra-
zil. According to data released by the Renew-
able Fuels Association (RFA), the two coun-
tries, responsible for more than 85% of the
total production (in the United States, eth-
anol from corn and in Brazil, from sugar-
cane), registered an increase of about 7%
in 2015, compared to 2014. At global lev-
el, there is an estimated increase of 4.5%.
On the other hand, consumption in one of
the two biggest sugar producing countries is
supposed to have risen even more (9.1%),
pointing to better times ahead for biofuel.
Less sweet
After five years of excessive
amounts of sugar in the global
market, production fell below
demand and registered a deficit
that pressed the market
Sílvio Ávila
30
