The sugarcane harvest begins in April and extends until November, concentrating 80% of the sugar production during this period. The southeast region of Brazil plays a significant role in the production of sugar and ethanol, although during the low season, production focuses on the northern region, contributing approximately 20% to the total.
SUGARCANE MILLS IN BRAZIL
In the Brazilian scenario, sugarcane mills are not authorized to engage in direct exports. Therefore, they adopt strategies such as:
- Selling sugar production to cooperatives authorized for export.
- Selling quotas to investors or companies specialized in sugar export.
- Establishing a second company with commercial export activities (Rarely).
LARGE SUGAR STOCKS IN BRAZIL
It is a misconception to think that exporters maintain large stocks of crystal, refined, or raw sugar waiting for export. In Brazil, semi-finished raw materials are stored in silos. When a purchase is confirmed, sugar is finalized, undergoes sanitary and quality verification analyses, is bagged, and sent to the shipping port.This is due to various reasons:
- Sanitary issues related to product preservation and quality (risks of contamination, moisture, product deterioration).
- Lack of adequate warehouses for storing refined products due to intense production of agricultural commodities, resulting in a competition for storage space.
- High costs of warehouse rental.