Will Brazilian corn farmers be the biggest price headache for Australian sugar producers?!

In recent years, Brazil’s corn ethanol output has expanded to well over one-quarter of the country’s total ethanol production. With additional projects expected to come on line over the next three to five years, corn ethanol is likely to account for more than one-third of national ethanol output. From 2026 onward, and likely for the following five years, Brazil’s ethanol market appears well supplied. For sugar producers, this reduces the flexibility to divert larger volumes of sugarcane into ethanol production when sugar prices are low. Andy Duff, Head of RaboResearch Food & Agribusiness – South America, discusses the implications for sugar supply and prices with Stefan Vogel, General Manager of RaboResearch Australia and New Zealand.