White Papers CTRM for Sugar – Managing Sugar’s Complexity | Page 4

CTRM for Sugar - Managing Sugar’s Complexity

A ComTechAdvisory Whitepaper

THE SOUTHERN HEMISPHERE IS
DOMINATING EXPORTS
Brazil is currently the world’s largest producer of white, also known as centrifugal or fully refined, sugar with annual production in 2014/15 of almost 36 million tonnes of sugar in 2014 accounting for slightly more than 20%
of the total global production. Brazil’s exports accounted for about 45% of the worldwide sugar exports last year.
While much of the sugar cane grown in Brazil is used for refined sugar, a large portion of crop has been used for
the production of ethanol to supply the Brazilian market for motor fuels and has made the country the largest user
of ethanol in the world.

India, the world’s second largest producer at 29.5 million
tonnes, is also the world’s largest consumer, leaving it outside
of export and import rankings.
Thailand has become a significant exporter of raw sugar in recent years, with the country now ranking second only behind
Brazil. With annual production in 2014 of 11 million tonnes,
up from 9.7 million tonnes in 2010; and with flat domestic consumption during the same period at around 2.5 million tonnes,
the country is a significant source of raw sugar for the rest of
the world.

IMPORTS ARE HISTORICALLY
INFLUENCED BY REGULATIONS
China is one of the top five producing countries in the world at 11 million tonnes in 2014 and its increasing population and growing middle class has led to increasing consumption. Since 2011 the country’s sugar imports
have more than doubled, growing from 2.1 million tonnes in that year to 4.8 million tonnes in 2014, making it the
world’s largest importer.

The US produces about 7.7 million tonnes per year, but faces
a net consumption shortfall of 3.1 million tonnes, which is met
through imports. These imports are mainly supplied from Mexico that aggressively competes for the US domestic market.
Trade regulations and quota systems are severely impacting
sugar flows between US and it’s adjacent countries Mexico,
Canada and consequently prices.

Similarly, the European Union, though a significant producer and a region in which sugar consumption has declined
in recent years, will typically import more sugar than it exports in any given year. In 2014 the EU countries exported
1.5 million tonnes, while importing some 3 million tonnes.
The latter highly influenced by trade regulations, price regulations and export quotas set by the European Union.

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