Study of the sugar and fuel alcohol markets in Brazil for Sugar Research and Development Corporation Brisbane, Australia

Abstract

Brazil is among the world leaders in the production of sugarcane, sugar, fuel alcohol (ethanol) and in sugar consumption and exports. In addition, its Center-South region is among the most efficient of all the world's major sugar producers and its export products are the most diverse. It currently uses about two-thirds of its annual sugarcane output of 300 million metric tons to produce fuel alcohol; the remaining one.,;third goes to produce sugar for domestic use and for export. The nation has the potential to expand sugar exports more rapidly than any ~ther of the world's major exporters by diverting more cane into sugar production for export. However, this potential is constrained by several factors, most notably by the country's need to satisfy its large '\.......- domestic sugar and fuel alcohol requirements. While the domestic sweetener requirements of the popUlation and the food and beverage industry are expected to grow at a rapid pace, policies supporting fuel alcohol are in transition. These policy developments will have important implications for the world sugar market.