Brazil's Domination of the World Sugar Market

Brazil currently dominates the world sugar market in almost all aspects. It is the world’s largest producer of sugar cane, the world’s largest exporter of sugar cane, and is one of the world’s largest consumers of sugar cane (fifth in the world). From its sugar cane, Brazil produces not only refined sugar but also anhydrous and hydrous alcohol mainly used as a blend in domestically-consumed gasoline.

The Brazilian government is also highly involved in its sugar-cane market. Blend rates of alcohol to gasoline are dictated to the market by law or decree, and this policy has a direct affect on producer and consumer welfare not only in Brazil but in the world. Looking forward, some advocates of fuel alcohol in Brazil foresee the development of a substantial export market. Currently only about 0.5 to 1.0 billion liters of production are exported annually. To help promote globalization of ethanol, Brazil is currently providing information on the economics and technological aspects of ethanol production and trade worldwide.