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Export market
World's major sugar producer
The world sugar industry is important
to the world economy. The world sugar market is characterized
by long-term growth in production and consumption of almost
2 percent per annum. Production, often influenced by government
policy decision, is more volatile than consumption.
Most sugar produced in the world is consumed domestically, and
the residual is sold on the world market. Strong production
and export growth has seen Brazil as a major force in the world
sugar market. In the 2001/02 marketing year, Brazil accounted
for 27.4 percent of world sugar exports. An increase in world
sugar production is expected from Brazil, India, Turkey and
some Southern African countries.
World sugar production in 1999/00 has been variously estimated
at between 132 and 136 million metric tons (raw value). World
production has been trending higher and with that stocks have
increased. Brazil remains the dominant producer of sugar and
the largest exporter. Much of the increase in world production
over the last ten years can be attributed to increased Brazilian
production.
Brazil is a major sugar producer
Sugar production is concentrated
in the central-southern region, while the smaller northern-northeastern
cane crop was damaged by dry weather. The situation in Brazil
is always complicated by the fact that a lot of sugar cane is
turned into alcohol which is used for fuel. If the supply of
alcohol increases and alcohol prices decline, more sugar cane
will be processed into sugar.
Brazilian sugarcane production for 2002/03 is estimated at 320
million tons, down 4 percent from the pervious projection due
to poor weather, according to a USDA report. The estimate for
planting area remains unchanged at 5.07 million hectares. Total
area for harvest is projected at 4.81 million hectares.
The average Brazilian yield is estimated at 66.5 tons per hectare,
a drop of about 4 percent due to dry weather during the April/May
to August period.
In 2002/03, total reducing sugar (TRS) for sugar and alcohol
production is estimated at 49.8 and 50.2 percent, respectively.
Total Brazilian sugar production for 2002/03 is estimated at
22.75 million tons, raw value. The central-southern region should
account for 19.4 million tons of sugar, while the northern-northeastern
region should account for the remaining 3.35 million tons.
Moreover, Brazil is also a large sugar consumer and exporter.
Brazil is the fifth largest world population and has a long
tradition of high per capita sugar consumption, at 50 kilograms
of sugar per year. Annual consumption is measured at 9.45 million
tons. Consumption of sugar largely reflects Brazil's population
growth. Food manufacturers, including those that produce carbonated
drinks, chocolate and ice cream, account for approximately 35-45
percent of domestic consumption. The remaining 55-65 percent
is direct consumption.
Brazil is also a large sugar exporter. In 2000, Brazil exported
about 7.7 tons of raw value sugar. Russia and Nigeria were the
largest importers. Brazil is enhancing its export ability by
improving transportation and loading facilities. In 1999, four
new automated sugar terminals began operation in the southern
port of Santos. This has reduced costs and speeded up the flow
of exports to the world market. Total sugar exports for 2001/02
have been upward of 11.6 million tons, raw value. Meanwhile,
Brazilian sugar exports have been revised downwards to 13.1
million tons, raw value, a 3 percent decrease from the previous
figure.
Mexico
Sugar production for 2001/02 has been revised downwards to 5.16
million tons, raw value, slightly decreased from 2000/01 production.
The overall mill yield increased to 11.36 percent, from 11.07
percent in the previous crop year. Some of the measures the
government implemented through the National Sugar Policy have
enabled the sugar industry to have access to more credit line
in order to pay cane producers on time.
China
The planted area estimated for sugar and beet is 1.24 million
hectares and 406,000 hectares, respectively. Total sugar production
estimate for 2002 is 7.87 million tons.
The forecasted 2003 planted area for sugarcane and sugar beet
is 1.31 million hectares and 525,000 hectares, respectively.
The total sugar production forecast has been reduced to 8.41
million tons.
In 2003, planted area in the Guangxi Autonomous region is forecast
to increase 5.8 percent to 610,000 hectares, compared with 575,000
hectares in the 2002 estimate. A government policy considers
sugarcane a key industry and has support measures as follows:
1) Increased use of the land conversion program, including policies
designed to reduce cane planted area by approximately one million
hectares, mostly land on steep hillsides.
2) Increased size of cane growing operations through consolidation
of small plots.
3) Increased planting of high yield varieties of sugarcane aimed
at increasing yield to 100 tons per hectare from the current
60 tons per hectare.
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