MERCOSUR: Sugar Market 2022

Sugar Market Size in MERCOSUR

In 2021, after two years of growth, there was significant decline in the MERCOSUR sugar market, when its value decreased by -12.5% to $X. In general, consumption saw a abrupt descent. Over the period under review, the market attained the peak level at $X in 2012; however, from 2013 to 2021, consumption remained at a lower figure.

Sugar Production in MERCOSUR

In value terms, sugar production reduced to $X in 2021 estimated in export price. Over the period under review, production recorded a abrupt decrease. The pace of growth was the most pronounced in 2016 when the production volume increased by 18% against the previous year. Over the period under review, production reached the maximum level at $X in 2012; however, from 2013 to 2021, production remained at a lower figure.

The country with the largest volume of sugar production was Brazil (X tons), comprising approx. 83% of total volume. Moreover, sugar production in Brazil exceeded the figures recorded by the second-largest producer, Colombia (X tons), more than tenfold. Argentina (X tons) ranked third in terms of total production with a 4.6% share.

In Brazil, sugar production shrank by an average annual rate of -1.9% over the period from 2012-2021. In the other countries, the average annual rates were as follows: Colombia (+0.6% per year) and Argentina (-1.7% per year).

Sugar Exports

Exports in MERCOSUR

In 2021, approx. X tons of sugar were exported in MERCOSUR; declining by -9.5% on the previous year. Overall, exports, however, continue to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2020 with an increase of 59%. As a result, the exports attained the peak of X tons, and then dropped in the following year.

In value terms, sugar exports amounted to $X in 2021. In general, exports continue to indicate a deep contraction. The most prominent rate of growth was recorded in 2020 when exports increased by 54% against the previous year. Over the period under review, the exports attained the peak figure at $X in 2012; however, from 2013 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Brazil dominates exports structure, amounting to X tons, which was near 96% of total exports in 2021. Colombia (X tons) took a relatively small share of total exports.

Brazil experienced a relatively flat trend pattern with regard to volume of exports of sugar. Colombia (-2.7%) illustrated a downward trend over the same period. The shares of the largest exporters remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) remains the largest sugar supplier in MERCOSUR, comprising 90% of total exports. The second position in the ranking was held by Colombia ($X), with a 3% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value in Brazil amounted to -5.6%.

Export Prices by Country

The export price in MERCOSUR stood at $X per ton in 2021, surging by 15% against the previous year. Overall, the export price, however, showed a abrupt slump. The level of export peaked at $X per ton in 2012; however, from 2013 to 2021, the export prices failed to regain momentum.

Prices varied noticeably country of origin: the country with the highest price was Colombia ($X per ton), while Brazil amounted to $X per ton.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Colombia (-2.0%).

Sugar Imports

Imports in MERCOSUR

In 2021, approx. X tons of sugar were imported in MERCOSUR; reducing by -12% compared with the previous year's figure. Over the period under review, imports recorded a perceptible setback. The pace of growth was the most pronounced in 2020 when imports increased by 32%. The volume of import peaked at X tons in 2012; however, from 2013 to 2021, imports stood at a somewhat lower figure.

In value terms, sugar imports declined slightly to $X in 2021. In general, imports recorded a deep downturn. The growth pace was the most rapid in 2020 with an increase of 32% against the previous year. The level of import peaked at $X in 2012; however, from 2013 to 2021, imports failed to regain momentum.

Imports by Country

Chile (X tons) and Venezuela (X tons) represented roughly 62% of total imports in 2021. Peru (X tons) ranks next in terms of the total imports with a 12% share, followed by Colombia (11%) and Uruguay (9.8%). Ecuador (X tons) and Suriname (X tons) followed a long way behind the leaders.

From 2012 to 2021, the biggest increases were in Chile (with a CAGR of +2.0%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Chile ($X), Venezuela ($X) and Uruguay ($X) constituted the countries with the highest levels of imports in 2021, together comprising 74% of total imports.

In terms of the main importing countries, Uruguay, with a CAGR of +2.4%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced a decline in the imports figures.

Import Prices by Country

The import price in MERCOSUR stood at $X per ton in 2021, picking up by 12% against the previous year. Overall, the import price, however, showed a mild shrinkage. The pace of growth appeared the most rapid in 2016 an increase of 17%. Over the period under review, import prices reached the peak figure at $X per ton in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2021, the country with the highest price was Uruguay ($X per ton), while Chile ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Uruguay (+2.6%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform