How Brazil Became the World’s Largest Sugar Exporter: A Blog Post

Brazil is the world’s largest sugar exporter, accounting for about 35.6% of the global sugar exports in 2022. The country has a long history of sugarcane cultivation, dating back to the 16th century, when Portuguese colonists brought the crop to Brazil. Since then, Brazil has developed a competitive and efficient sugar industry, based on its favorable climate, abundant land, low labor costs, and advanced technology.

Ethanol production

One of the main factors that contributed to Brazil’s dominance in the sugar market was the introduction of ethanol as a biofuel in the 1970s. Ethanol is produced from sugarcane juice or molasses, and can be used as a substitute for gasoline in vehicles. Brazil’s ethanol program was a response to the oil crisis of the 1970s, which increased the demand for alternative energy sources. Ethanol also helped reduce Brazil’s dependence on imported oil, improve its trade balance, and lower its greenhouse gas emissions.

Ethanol production created a flexible and dynamic sugar industry in Brazil, as it allowed sugar mills to switch between sugar and ethanol output depending on market conditions. This gave Brazil an advantage over other sugar producers, such as India and Thailand, which mainly produce sugar for domestic consumption or export. Brazil can adjust its sugar supply according to global demand and prices, and avoid oversupply or undersupply situations.

Sugarcane expansion

Another factor that boosted Brazil’s sugar exports was the expansion of its sugarcane area and productivity. Brazil has about 10 million hectares of land dedicated to sugarcane cultivation, which is more than any other country in the world. The country also has one of the highest yields of sugarcane per hectare, thanks to its advanced agricultural practices, such as mechanization, irrigation, fertilization, pest control, and genetic improvement. Brazil also invests heavily in research and development to improve its sugarcane varieties and production techniques.

Efficient infrastructure

Brazil’s sugar industry also benefits from its strong infrastructure and logistics network, which facilitate the transportation and export of sugar. Brazil has about 400 sugar mills, which are located close to the sugarcane fields and have their own power plants that use bagasse (the fibrous residue of sugarcane) as fuel. Brazil also has several ports along its coastline, which are equipped with modern facilities and equipment to handle large volumes of sugar shipments. Brazil’s main export destinations for sugar are China, India, Indonesia, Algeria, and Bangladesh.

Brazil’s sugar industry faces some challenges in the future, such as environmental concerns, social issues, trade barriers, and competition from other producers. However, Brazil has shown its resilience and adaptability in the past, and is likely to maintain its leadership position in the global sugar market for years to come.

Brazil: The World’s Largest Sugar Exporter

Brazil is the world’s largest sugar exporter, with a market share of about 35.6% in 2022. The country produced nearly 35 million metric tons of processed sugar in 2022/2023, from a sugarcane harvest of 715.7 million metric tons in 2021. Brazil’s sugar exports are mainly destined for Asia, Africa and the Middle East, where demand is high and growing.

Brazil’s sugar exports by region in 2022 (in million metric tons):
Asia: 14.5
Africa: 6.8
Middle East: 4.2
Europe: 2.7
North America: 1.4
South America: 0.9
Brazil’s main sugar export destinations in 2022 (in million metric tons):
China: 4.8
Bangladesh: 3.1
Algeria: 2.9
Indonesia: 2.6
Nigeria: 2.3

Thailand: The Second Largest Sugar Exporter

Thailand is the second largest sugar exporter in the world, with a market share of about 9.9% in 2022. The country produced about 11 million metric tons of processed sugar in 2022/2023, from a sugarcane harvest of 100 million metric tons in 2021. Thailand’s sugar exports are mainly destined for Asia, especially China and Indonesia, where demand is strong and increasing.

Thailand’s sugar exports by region in 2022 (in million metric tons):
Asia: 10.1
Africa: 0.5
Middle East: 0.3
Europe: 0.1
North America: <0.1
South America: <0.1
Thailand’s main sugar export destinations in 2022 (in million metric tons):
China: 3.5
Indonesia: 2.4
Malaysia: 1.1
Japan: 0.8
Philippines: 0.7

India: The Third Largest Sugar Exporter

India is the third largest sugar exporter in the world, with a market share of about 18.6% in 2022. The country produced about 32 million metric tons of processed sugar in 2022/2023, from a sugarcane harvest of over billion metric tons in . India’s sugar exports are mainly destined for Africa and Asia, where demand is high and growing.

India’s sugar exports by region in (in million metric tons):
Africa:
Asia:
Middle East:
Europe:
North America:
South America:
India’s main sugar export destinations in (in million metric tons):
Bangladesh:
Iran:
Sri Lanka:
Afghanistan:
Sudan:

References:

https://apps.fas.usda.gov/psdonline/circulars/sugar.pdf

https://web.archive.org/web/20170125080727/https://ec.europa.eu/agriculture/sites/agriculture/files/sugar/doc/sugar-faq_en.pdf

https://web.archive.org/web/20180507053743/https://www.oxfam.org/sites/www.oxfam.org/files/bp61_sugar_dumping_0.pdf

https://www.acponline.org/authors/conflictFormServlet/L16-0534/ICMJE/L16-0534-Conflicts.pdf

https://ec.europa.eu/agriculture/sugar_en

https://web.archive.org/web/20180820005726/https://www.ictsd.org/bridges-news/biores/news/brazil-claims-victory-after-wto-ruling-on-eu-sugar-subsidies

http://news.bbc.co.uk/2/hi/business/4118448.stm

http://diabetesed.net/wp-content/uploads/2017/08/Annals-int-medicine-sugar-study-skew.pdf

https://www.statista.com/statistics/273437/exported-amount-of-sugar-in-leading-countries/

https://www.statista.com/statistics/495966/sugar-exports-worldwide/