Sugar Production In Brazil
The greatest sugar producing nation in the world, Brazil is expected to produce over 32 million tons of sugar in the 
2007/2008 period. Sugar production in Brazil has been consistently high for many decades, and has gone from strength to strength. Though production briefly faltered in the early 2000’s, Brazilian sugar production has bounced back, and in the in the 2006/2007 period it easily broke the 30 million ton mark. For a period of time it looked as if India was going to take world leader status in sugar production over Brazil, but due to relatively poor soil quality, relatively poor quality sugar cane, and less efficiency in the sugar production process overall, India has once more fallen behind Brazil.
It is also important to note that in spite of its massive yearly sugar production, Brazil actually allocates quite a large portion, sometimes in excess of fifty percent, of its sugar cane crop for the purpose of ethanol production. It would be quite easy for Brazil to flood the global marketplace with cheap sugar if it so desired, and the evidence of Brazil’s power over global sugar prices was evident as far back as 2002, when increased Brazilian sugar production made global sugar prices plummet to just five cents per pound. The likelihood of the Brazilian government deciding to flood the world market is very low however, especially with the increasing demand for biofuels such as ethanol from sugar cane.
Quite the opposite from the demise of the global sugar market, what Brazil’s large sugar cane crop does mean is that Brazil can very quickly respond to fluctuations in the global sugar market. In years where there are shortfalls, it can supply extra sugar to the market, and in years where the sugar market is saturated it can simply channel more sugar cane into ethanol production.
Regions Of Sugar Production In Brazil
Brazil has two main sugar cane growing and sugar producing regions. The largest of the two is located adjacent to and in the Sao Paulo state region which lies in the center south of Brazil. This fertile and flat region is perfectly suited for growing sugar cane, as there are ample nutrients in the soil to nourish the cane through its growing stages, and when it comes time to harvest the sugar cane, the large flat fields of sugar cane are easily harvested by mechanical means. It is estimated that well over sixty percent of all sugar cane grown in Brazil is grown in the Sao Paulo region.
The second major sugar producing region in Brazil is in the north northeast, and lies across the Pernambuco and Algolas states. The terrain here is much less suited to growing sugar cane, as it is quite hilly, and the soil quality is relatively poor. Harvesting is also much more labor intensive as mechanical harvesters are ineffective, and manual labor is needed to make the most of the sugar cane crop.
The harvesting seasons also differ between the Sao Paulo growing region and the Pernambuco/Algolas region. In the Sao Paulo growing region the harvest runs from May through to and including November. It can sometimes start a few weeks earlier if there are shortfalls in the global market which need to be filled. Sugar is generally plentifully available during this period, but may start to run low from December through to April in the harvesting off season. The Pernambuco/Algolas harvesting season is longer and runs from September through to May, but does little to alleviate global sugar demand, as most of the sugar produced in this region is for domestic use, or has already been traded in advance.
Brazilian Sugar Grades
Although Brazil is the world’s largest sugar producer and exporter, it is not the world’s largest sugar refiner. Most of the sugar exported from Brazil is unrefined centrifugal sugar or raw sugar. There are a few Brazilian refineries who produce a relatively small amount of ICUMSA 100-150, and still less ICUMSA 45. Generally speaking, most sugar purchased from Brazil will be sugar which needs to undergo further refining in order to be suitable for human consumption. If one wishes to obtain highly refined sugar from Brazil, one is advised to order in small quantities, as it may not be able to obtain larger quantities of refined sugar direct from Brazil.
It is often a source of surprise to potential buyers that even if one is seeking to purchase raw sugar from Brazil, one may have trouble sourcing large amounts of any grade of sugar, in spite of the fact that Brazil is the world’s leading sugar producer. This is due to the fact that Brazilian sugar is heavily traded on the futures market, and in many cases sugar is sold long before the cane is even planted. Those new to the market must then content themselves with the surplus amounts of sugar which were not planned for.
If one seeks to purchase large amounts of sugar, one will normally find that the best way to obtain it is to agree to a multi shipment deal, in which the sugar is shipped over a period of months. This is effectively putting in an order on future sugar, and will give one a metaphorical foot in the door to a continuous sugar supply, rather than constantly scraping for the surplus sugar, a process which can be risky if dealing with unscrupulous sellers, and which is most definitely time consuming and potentially disastrous for business concerns which depend on having a consistent supply of sugar.
Brazilian Sugar Exporters
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