Brazil’s sugar and ethanol industry needs $80 billion of new investment in the next 10 years to meet global demand, according to industry association Unica.

About 250 new plants are needed to process the country’s sugar cane, and “only” five are starting this year, Geraldine Kutas, a senior adviser at Unica, said in an interview at a conference in Brussels. New investment has been limited because of reduced profits in biofuels, she said.

“We will have a deficit of 400 million tons of sugar cane by 2020 if the current pace of investment remains unchanged,” Kutas said. Brazil is the world’s largest producer of sugar.

(Source: Bloomberg, 22 Jun 2011)

Brazil, the world’s largest sugar producer will have a significant impact on global sugar trends. In fact, Brazil’s main producing region will have declining cane output for the first time in 10 years, industry researcher Datagro Ltd said. Cane output is expected to drop 4 percent to 536 million metric tons from a year ago, it estimated.

In addition to a reduced output, Brazilian cane production is also allocated to manufacture ethanol biofuel, depending on relative demand and prices.

At 8th Sugar World & Ethanol Feedstocks in Bangkok (26-27 Sept 2011), we look at developments within Brazil, one of the key drivers of global sugar supply and deficit for 2010/2011, and how global ethanol demand will affect Brazilian sugar production for the upcoming year.

We have invited Datagro Consulting, to share perspectives on the topic Forecast for the harvest: Brazil’s sugar and ethanol equation. Guilherme Nastari, Director of Operations, will discuss the development of Brazil’s sugarcane crop.

For more on the Industry’s most influential players, Datagro Consulting, and dynamics of the Sugar-Ethanol equation, visit the official website for 8th Sugar World & Ethanol Feedstocks !

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