Brazil is preparing to increase sugar production to a record 43.1 million tons in the 2024/25 season, focusing on profitability.

The leading sugar producer in Brazil could increase production to a record 43.1 million tonnes in the 2024/25 season, despite a decrease in sugarcane supplies, as indicated by the sugar and ethanol consulting company Datagro. Sugar production in the main region of Brazil is likely to increase, as mills focus on producing more profitable sugar rather than ethanol, announced Datagro's director, Guilherme Nastari. The increase in sugar production will help Brazil cope with the shortage of supplies from India and Thailand, the two largest producers, and may potentially stabilize global sugar prices. Sugar production in India is expected to fall short of demand for the first time in seven years, and a reduction in planting areas may force the country to import sugar next year. Thailand is forecasted to produce between 8 to 8.5 million tonnes of sugar in the next production year 2023-2024, which is approximately 25% less than the previous season. Sugarcane processing in Brazil may decrease to 620 million tonnes in the 2024/25 season compared to the estimated 649.25 million tonnes in 2023-2024, Nastari stated at a sugar conference. However, it is expected that mills will produce more sugar than ethanol, allowing them to reach a record volume of 43.1 million tonnes of sugar in 2024-2025. In 2023-2024, sugar production in Brazil in the Central-Southern region will reach a record level of 42.23 million tonnes. Despite a recent adjustment in sugar prices, it remains more profitable than ethanol, which is why Datagro expects 52.4% of the sugarcane crop in 2024-2025 to be used for sugar production compared to 49% in 2023-2024. As a result, sugarcane ethanol production may decrease to 31 billion liters in 2024-2025 compared to 32.96 billion liters in the current year, says Nastari. However, corn ethanol production may increase to 7 billion liters in 2024-2025 compared to 5.9 billion liters in the current year, he adds.