T here is enough for all
Largest exporter of sugar in the world, Brazil ships record
volumes to consumer markets in early 2016
Shipping abroad about 70% of its pro-
duction, Brazil leads the international sug-
ar market and expands the volumes trad-
ed in 2016. In the first half of the year, by
June, shipments had soared 21% from the
same period the previous year. With global
supplies very tight, due to the smaller sug-
arcane crop in the 2015/16 growing sea-
son, “a lot of the consumer markets are
likely to fulfill their domestic demand with
sugar purchased from Brazil”, comments
Djalma de Aquino, analyst at the National
Food Supply Agency (Conab).
While in 2015 (the entire year) the
amount of sugar shipped abroad did not ex-
ceed the amount of the previous year, the
first six months in 2016 showed a record for
the period (12.5 million tons), from num-
bers released by the Ministry of Agriculture,
Livestock and Food Supply (Mapa). The val-
ue brought in, US$ 3.9 billion, also went
up in the meantime (11%), but the average
price (R$ 314.13/t) dropped by 17.5%, due
to the higher value of the North-American
currency, compared to the Real, says Conab
technician. São Paulo is the State that ex-
ports the most (69.9%) and China accounts
for the biggest purchases (9.12%), followed
by Algeria, India, Bangladesh and Nigeria.
Considering sugar in bulk, the value
shipped abroad by Brazil in the first half of
2016 reached US$ 3.15 billion, ranking as
fourth major item exported by the Country
and as second biggest in revenue from agri-
business. This fact is highlighted by the Sec-
retariat for External Affairs of the Brazilian
Confederation of Agriculture and Livestock
(CNA), stressing that “agribusiness was the
sector that gave the biggest contribution to-
wards the positive balance of trade over the
period, and 7 out of the 10 exported prod-
ucts come from the agribusiness sector”.
Ivan Melo, director of the sugar division at
company Raizen, stresses that the product
“plays a fundamental role in the resumption
of the economic growth”.
CNA officials maintain that “soaring sug-
ar exports are influenced by the higher in-
ternational prices of the commodity, due to
tighter supply and bigger demand, which
results in deficit”. He also ascertains “price
increases that stem from the recent depre-
ciation of the dollar compared to the cur-
rencies of the sugarcane producing coun-
tries”. The Center for Applied Studies on
Advanced Economics (Cepea), of the Uni-
versity of São Paulo (USP), in turn, men-
tions, besides the deficit foreseen for the
two growing seasons, the influence of inter-
national prices on India’s procedure, big-
gest consumer, by introducing a 20-percent
tariff on exports, so as to make sure the do-
mestic market is duly supplied.
Inor Ag. Assmann
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