Brazil’s sugar industry is relishing a promising year in 2023, thanks to heightened demand fueled by the ongoing conflict between Russia and Ukraine, particularly in Europe. Concurrently, several countries seeking to fortify their strategic reserves have experienced a decrease in the sugar supply. This situation has presented a profitable opportunity for exporters, especially those in Brazil, who benefit from favorable exchange rates. Moreover, the global ramifications of the war, including its impact on oil prices and supply, have pressured the demand for ethanol and other biofuels. Consequently, ethanol sales have seen substantial growth. Against this backdrop, sugar producers operating convertible mills are strategically determining whether to prioritize sugar or alcohol production in the upcoming sugarcane harvest projected for the 23/24 season, estimated to yield a total of 637.1 million tonnes.
Sources: Valor Econômico/Datamar News