Primary sugar crops market in MERCOSUR

Earlier Report Observations

Between 2018 and 2020, the primary sugar crops market in MERCOSUR showed stable, though modest, growth, rising from 772.7 million tonnes to 781.4 million tonnes. This expansion took place within a context of strong traditional cultivation in countries like Brazil and Argentina, where state-owned and private companies are key players. However, structural limitations, including low mechanization in some regions and the sugar sector's exclusion from the MERCOSUR Customs Union, posed challenges for more dynamic development. In 2020, the COVID-19 pandemic pressured demand, particularly for ethanol, which restrained further market volume growth.

In 2021, production fell by 5.3% to 739.9 million tonnes, primarily driven by adverse climatic factors. Severe droughts in Argentina and Brazil reduced raw material availability and led to lower sugarcane milling and sugar output.

From 2022 onward, the market began to recover, supported by a historic rise in international sugar prices and growing demand for ethanol, which stimulated investments in technology and equipment. By 2023, market volume reached 803.9 million tonnes, a 7.6% increase, fueled by record sugarcane production in Brazil. Favorable weather conditions and improvements in agricultural management enhanced raw material supply and operational efficiency, driving this growth.

Production primary sugar crops in MERCOSUR

In kind, 2017-2020, M t

Top producers of primary sugar crops, 2017-2020

World map of production of primary sugar crops, 2017-2020

MERCOSUR's primary sugar crops production has increased for the second consecutive year. In 2019, production remained flat compared to the previous year, with 781.4 million tons produced in 2020. The lowest production level was recorded in 2018 at 772.7 million tons, representing a 1.5% decline. The largest increase occurred in 2019, with a 0.7% rise.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, M t

Exports primary sugar crops from MERCOSUR

Exports in kind, kg

MERCOSUR's volume of primary sugar crops exports has increased for the third consecutive year. In 2020, exports totaled 7 145 kg, reflecting a strong 20.3% advance compared to 2019. Over the period from 2017 to 2020, exports grew by 4 204.2%, with a compound annual growth rate of 250.5%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, kg

From 2017 to 2020, exports in kind of primary sugar crops from MERCOSUR were distributed across many countries. Greece accounted for 18.3% of exports, Cyprus for 11.4%, and the United Kingdom for 9.3%. Together, these three countries represented only 39.0% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, $ US

There were noticeable fluctuations in market performance during this period. The minimum value was recorded in 2018 at 2 002 US dollars, while the maximum value occurred in 2019 at 9 531 US dollars, creating a peak-to-trough amplitude of 4.8 times. In 2020, primary sugar crops deliveries from MERCOSUR reached 8 037 US dollars, which is 15.7% less than the previous year. The largest decline was recorded in 2018 at 42.9%, and the largest increase occurred in 2019 with a 376.1% rise.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, $ US

Data from 2017 to 2020 indicate that exports in value terms of primary sugar crops from MERCOSUR were not concentrated on a few key destinations. The United Arab Emirates accounted for 15.0% of exports, Cyprus for 11.1%, and Greece for 10.3%. Collectively, these three countries represented only 36.3% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports primary sugar crops to MERCOSUR

Imports in kind, kg

There were noticeable fluctuations in market performance during this period. The lowest volume was recorded in 2018, while the highest occurred in 2019, creating a peak-to-trough ratio of 11.9 times. In 2020, MERCOSUR imported a total of 116 kg of primary sugar crops, reflecting a sharp 76.8% reduction from 2019. The maximum value was recorded in 2019 at 500 kg, with the largest increase that year at 1 090.5%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, kg

From 2017 to 2020, China remained the main market for imports in kind, accounting for 76.0% of total flows. The remaining volume was fragmented across numerous other destinations.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, $ US

MERCOSUR's volume of primary sugar crops imports has increased for the second consecutive year. In 2020, MERCOSUR imported 3 042 US dollars worth of primary sugar crops, up by 161.1% relative to the prior year. Between 2018 and 2020, imports grew by 2 532.4%, equating to an annualized rate of 197.5%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, $ US

Over the period from 2017 to 2020, imports in value terms of primary sugar crops to MERCOSUR were largely concentrated on the United States, which accounted for 70.4% of total flows. Other countries together formed the remaining share.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020