Sugar Production in Brazil 2023/2024

Emily Alves
26/10/2023

Sugar production in Brazil is expected to increase in the 2023/2024 harvest due to a

number of factors, including high international market prices and rising demand. This is
good news for sugar mills, which have been investing in irrigation systems, such as drip
irrigation, to improve productivity and stabilize yields.

The sugar market is currently under some financial pressure, with oil prices down and the
dollar up against the real. However, the long-term outlook for sugar is positive, and
Brazilian sugar mills are well-positioned to benefit from high international market prices
and rising demand.

Raízen, the largest company in the sugar and ethanol sector in Brazil, increased sugarcane
crushing to around 37.5 million tons in the second quarter of the 2023/24 season, compared
to 26.8 million in the immediately previous period.

Raízen's operational preview for the second quarter of the 2023/24 harvest showed
a significant improvement over the first quarter, with growth of almost 40%. This
was driven by a number of factors, including greater sugarcane availability,
favorable weather, an accelerated production pace, and more crushing days.

The company's total recoverable sugar (ATR) also increased during the quarter, to
143 kilos per ton of cane, compared to 124 kg/ton in the previous harvest. This led
to a corresponding increase in equivalent sugar production, which reached 5.2
million to 5.3 million tons. Given the current price cycle, Raízen chose to prioritize
sugar production over ethanol production, which resulted in a mix that was more
heavily weighted towards sugar.

Ethanol sales also increased during the quarter, by 30.6%, to a total of 1.4 million
cubic meters. This is in line with Raízen's inventory positioning strategy, given the
current market conditions.
Overall, Raízen's operational preview for the second quarter of the 2023/24 harvest
was very positive, with strong growth in both sugar and ethanol production. The
company is well-positioned to capitalize on the current market conditions, and is
expected to continue to deliver strong results in the coming quarters.