With one month to go before the start of the 2020/21 sugar campaign (April 2020 to March 2021), Conab estimates that Brazil will break sugar production and export records. Brazil’s sugar production in 2020/21 is estimated at 41.8 million tons, which would be a 40% increase compared to last year. Sugar exports in 2020/21 are also expected to be record high.
Before the end of the production year (ends in March), Brazil has already managed to break the record by exporting 28.4 million tons of sugar between the months of April 2020 and January 2021, data from the Secretariat of Foreign Trade (SECEX). During the same period last year, Brazil exported 18.9 million tons.
One of the factors behind Brazil’s record-breaking performance was the strong sugar prices and the fact that sugar producers have opted to produce more sugar and less ethanol. Recall that the results of previous closures were low due to lower demand for ethanol resulting from the closures caused by the pandemic.
In its third assessment of the 2020/21 sugarcane crop in Brazil, the National Supply Company (Conab) estimated that Brazil’s sugarcane production increased by 3.5% with an increase in area of 1.9% and an increase in productivity of 1.5%.
The fourth crop assessment will be published at the end of April.
The outlook for the 2021/22 production year, which will begin in April, is also positive, as sugar prices remain strong and the Brazilian currency (Brazilian real) is favorable.