Market

The Sugar and Ethanol Market

Brazil is one of the world’s largest sugarcane producers and processors. In the 2007/2008 harvest, Brazil produced a record 496 million tons of sugarcane. One of the advantages Brazil enjoys is the fact that it has two distinct harvest periods: the North-Northeast region harvests its crop between November and April, whilst the Center-South region harvests from May to November. So Brazil enjoys not only important geographical diversification, but also greater harvest balance.

Sugar

Worldwide sugar production has been growing consistently in recent years, at an average rate of 2.6% a year, reaching production of 167 million tons in the 2007/2008 harvest. Brazil is today the world’s largest sugar producer, at 31.6 million tons, exporting 17.4 million tons.

 

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Ethanol

Brazilian ethanol production has been growing significantly in recent years. As production of vehicles that run on biofuel has risen, now accounting for over 90% of new car sales in Brazil, according to official statistics from ANFAVEA, Brazil has adapted to the opportunities in the sector by serving the growing demand for ethanol. Brazil produced 22.5 million cubic meters of ethanol in the 2007/2008 harvest.

The demand for Brazilian ethanol on the international market has been rising. According to the United States Environmental Protection Agency, besides being renewable and a cleaner fuel than gasoline ethanol significantly reduces emissions of carbon dioxide and other greenhouse gases. Questions regarding the need to replace fossil fuels with cleaner options, such as ethanol, have contributed to the increased demand for this product expected over the next few years.

For further information on the sugar and ethanol market, click here.

 

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