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Growth in sugar exports also cheers agribusiness

Although we are still at the beginning of the 2020/2021 harvest, the data are promising: until May, in comparison with the same period in the previous year, the growth was over 21%, surpassing the mark of 103 million tons of sugarcane crushed.

Due to a change in the domestic consumption profile, there is a greater availability of sugar for export. The COVID-19 pandemic and the dispute between Saudi Arabia and Russia over the price of oil have decreased the competitiveness of gasoline and ethanol, making both less commercialized. This has been decisive in increasing the amount of raw material that can be used in the production and export of sugar.

The record sugar production that was registered three years ago is about to be reached in this new harvest: there are almost 9 million tons more than in the previous harvest. Most of the production comes from the center-south of the country (36 million), followed by the northeast (3 million).

Last year, 20% of the agribusiness exports were sugar, and even with the low value in the international market, the trend is that this will continue to happen due to the favorable exchange rate. According to Jacyr Costa Filho, from the Tereos Group and president of the Conselho Superior do Agronegócio da Federação das Indústrias do Estado de São Paulo (Fiesp), "The prices fell, but the devaluation of the real against the dollar led to a gain in competitiveness and offset the costs".

Brazil has the differential of being able to dispose of about 85% of the mills for diverse productions such as fuel, disinfection products, and even sugar, which optimizes the supply and makes it more efficient.

As important partners are the Arab countries, both for imports of Brazilian products from sugar cane and for investments in the sector.

Source: Brazil-Arab News Agency

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