Sugar and Ethanol

Identified as one of the world’s largest sugar and ethanol producers, Brazil is winning over more markets with its enormous productive efficiency in the sugar and ethanol chain. Significant production growth, which has reached almost 10% a year in the last ten years, demonstrates the power of the sector in Brazilian. It is not for nothing that a large number of foreign investors have entered this market in the last few years.

Besides recognized publications on this important sector, IEG FNP has a team of qualified specialists to provide consultancy work on supply and demand forecasts, harvest estimates, technical and economic viability, and other aspects of the business.


The dynamic of the agricultural market, as well as the volatility of commodities prices, have made information strategic and essential for those involved in Brazilian agribusiness. This growing demand for knowledge led IEG FNP, a company with over 20 years' experience in the Brazilian farming sector, to produce the Agricultural Market Consultancy (COMAG).

COMAG takes a snapshot of the activity and translates it in an analytical and informative manner for readers, giving them a detailed overview of the market for the main crops in Brazil - soy, corn/sorghum, cotton, and sugarcane, with in-depth analysis of the events in the sector and expectations for the future for each production chain. It is an essential support tool for any business interested in understanding and predicting the dynamic of the main agricultural commodities in Brazil and the world.

Crops dealt with:

  • Soy and other oilseeds
  • Corn and other winter cereals
  • Cotton
  • Sugarcane



  • Executive summary: brief summary including the main news on each crop
  • Overview: Holistic vision of the Brazilian economy and agribusiness
  • Economic indicators: brief analysis of Brazil's macro-economic scenario.


  • Global supply and demand figures: main events in the key countries for each crop and the impact on international trade and market operations.
  • Harvest forecasts and follow-up: estimates for current harvest production with periodical updating on crop progress and conditions throughout Brazil.
  • Brazilian supply and demand figures: monthly forecast on supply and demand for each productive chain and their sub-products.
  • Market overview; analysis of spot and future prices and our expectations for the dynamic on these values over the coming months.
  • Production costs: estimates and consolidated prices for costs and profitability in the main producer regions, updated three times a year.

Statistical appendix

  • Tables of statistics for all the information analyzed.


Brazil is the world's leading sugarcane producer. The country is considered to have the world's first sustainable biofuels economy. Together, Brazil and the United States lead the industrial world in global ethanol production, accounting together for 70% of the world's production

In 2007/08, about 44% of this came from sugar sales and 54% from ethanol sales, with the remaining 2% from bioelectricity sold in the domestic market. Sugar sales were split 36% - 64% between the domestic and foreign markets respectively, while ethanol sales were dominated by the domestic market, which generated 85% of revenues against 15% for exports.

Despite the decrease in the Brazilians sugar export in 2007, the irregularity in sugar production in India maintains the expectation upwards to the Brazilian sugar on the international market. Russia and the countries of Southeast Asia might continue increasing imports of Brazilian product in the next year.

The estimates to the 2008/09 harvest are around 559 million tonnes of sugarcane, a growth of 13% when compared to the last crop. To process such production, will be added around 30 new mills over the crop season, in addition to the existing 390 mills that are operational.

This rapid growth in the number of mills, combined with the upgrading of port, pipeline, road and rail infrastructure will mean that Brazil should be able to meet export demand and supply the expanding domestic and Latin American market for fuel ethanol.

Key questions to be answered in this study

  • What is the outlook for flex-fuel vehicle market in Brazil?
  • Is sugar cane expansion a threat to the Amazon rain forest?
  • What is the outlook for the Brazilian sugar cane industry?
  • What is bioelectricity and what is the potential in Brazil?
  • What are the key drivers and success factors in the sugar and ethanol sector?
  • How competitive is Brazil in the sugar and ethanol export market?
  • How big is the Brazilian domestic ethanol market?
  • What are the key obstacles concerning the logistics infrastructure?
  • Which are the best regions for the sugar cane crop regarding climate, soil and logistcs?
  • Will sugar cane production move into new regions of Brazil, such as the Mid-West?
  • What is the outlook for the land price evolution of Brazil for sugar cane areas?
  • Are Brazilian sub-products important to its industry?
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