Identified as one of the world’s largest sugar and ethanol producers, Brazil is winning over more markets with its enormous productive efficiency in the sugar and ethanol chain. Significant production growth, which has reached almost 10% a year in the last ten years, demonstrates the power of the sector in Brazilian. It is not for nothing that a large number of foreign investors have entered this market in the last few years.
Besides recognized publications on this important sector, Informa Economics FNP has a team of qualified specialists to provide consultancy work on supply and demand forecasts, harvest estimates, technical and economic viability, and other aspects of the business.
The dynamic of the agricultural market, as well as the volatility of commodities prices, have made information strategic and essential for those involved in Brazilian agribusiness. This growing demand for knowledge led Informa Economics FNP, a company with over 20 years' experience in the Brazilian farming sector, to produce the Agricultural Market Consultancy (COMAG).
COMAG takes a snapshot of the activity and translates it in an analytical and informative manner for readers, giving them a detailed overview of the market for the main crops in Brazil - soy, corn/sorghum, cotton, and sugarcane, with in-depth analysis of the events in the sector and expectations for the future for each production chain. It is an essential support tool for any business interested in understanding and predicting the dynamic of the main agricultural commodities in Brazil and the world.
Crops dealt with:
Brazil is the world's leading sugarcane producer. The country is considered to have the world's first sustainable biofuels economy. Together, Brazil and the United States lead the industrial world in global ethanol production, accounting together for 70% of the world's production
In 2007/08, about 44% of this came from sugar sales and 54% from ethanol sales, with the remaining 2% from bioelectricity sold in the domestic market. Sugar sales were split 36% - 64% between the domestic and foreign markets respectively, while ethanol sales were dominated by the domestic market, which generated 85% of revenues against 15% for exports.
Despite the decrease in the Brazilians sugar export in 2007, the irregularity in sugar production in India maintains the expectation upwards to the Brazilian sugar on the international market. Russia and the countries of Southeast Asia might continue increasing imports of Brazilian product in the next year.
The estimates to the 2008/09 harvest are around 559 million tonnes of sugarcane, a growth of 13% when compared to the last crop. To process such production, will be added around 30 new mills over the crop season, in addition to the existing 390 mills that are operational.
This rapid growth in the number of mills, combined with the upgrading of port, pipeline, road and rail infrastructure will mean that Brazil should be able to meet export demand and supply the expanding domestic and Latin American market for fuel ethanol.
Key questions to be answered in this study
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