Sugar cane market in Australia

Earlier Report Observations

The sugar cane market in Australia experienced notable fluctuations in volume between 2018 and 2023, primarily driven by recurring adverse weather events. Severe droughts, cyclones, and floods in Queensland significantly impacted production during 2018 and 2019, contributing to a contraction in the market size. The situation was further compounded in 2020 by the COVID-19 pandemic, which disrupted supply chains and affected demand, alongside a marked increase in input costs for fertilizers and fuel that squeezed producer margins and dampened output.

A victory at the WTO in 2021 against India's sugar export subsidies improved the global trade environment for Australian producers, coinciding with a slight market recovery. However, the closure of two mills in Queensland during this period, attributed to low international prices, created structural constraints. A sharp decline in 2022 to 28 669 K t was strongly linked to extensive flooding in both New South Wales and Queensland, coupled with soaring energy costs. The market rebounded to 32 589 K t in 2023, supported by growing domestic consumption fuelled by population growth and a sustained focus on certified sustainable production programs like Smartcane BMP to enhance market access.

Production sugar cane in Australia

In kind, 2018-2021, K t

From 2018 to 2021, Australia ranked eighth globally in sugar cane production.

Top producers of sugar cane, 2018-2021

World map of production of sugar cane, 2018-2021

After two years of decline, Australia's sugar cane production increased in 2021, reaching 31 133 thousand tonnes—a 2.8% rise from the previous year. However, over the entire 2018–2021 period, production fell by 7.1%, with a compound annual growth rate of 2.4%. The lowest production level occurred in 2020 at 30 283 thousand tonnes, which also saw the largest annual decline of 6.6%.

Annual dynamics of production in Australia in kind, 2018-2021, K t

Exports sugar cane from Australia

Exports in kind, t

The export market for sugar cane showed significant volatility during these years. Exports hit their lowest point in 2018 and peaked in 2021, with a staggering 372-fold difference between these two years. In 2021, Australia exported 10.8 tonnes of sugar cane, marking a 434.0% improvement over 2020. The largest decline was recorded in 2020 at 3.8%, while the biggest increase occurred in 2019 with a remarkable 7 148.3% surge.

Annual dynamics of product's exports from Australia in kind, 2018-2021, t

From 2018 to 2021, the main destinations for Australia's sugar cane exports in volume terms were Fiji (34.9% of exports), Vanuatu (28.1%), and Japan (27.8%). Together, these three countries accounted for 90.8% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Australia in kind, 2018-2021

Exports in value, $ US

Export values exhibited irregular changes, pointing to a volatile market environment. The lowest value was recorded in 2019, while the highest came in 2021, with a 43-fold gap between these years. In 2021, sugar cane exports from Australia reached 80 919 US dollars, representing a 2 116.4% increase compared to 2020. The minimum value was 1 901 US dollars in 2019, which also saw the largest annual decline of 46.8%.

Annual dynamics of product's exports from Australia in value, 2018-2021, $ US

Throughout the 2018–2021 period, Fiji dominated Australia's sugar cane exports in value terms, accounting for 73.4% of total flows. Other destinations contributed relatively small shares.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Australia in value, 2018-2021

Imports sugar cane to Australia

Imports in kind, t

Australia's sugar cane imports declined for the second consecutive year in 2021, with volumes dropping to 7.9 tonnes—a 72.1% decrease from 2020. Between 2019 and 2021, imports fell by 92.1%, equating to an annualized decline rate of 57.1%.

Annual dynamics of product's imports to Australia in kind, 2018-2021, t

From 2018 to 2021, Brazil was the primary source for Australia's sugar cane imports in volume terms, representing 91.7% of total flows and nearly defining the entire geographical structure.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Australia in kind, 2018-2021

Imports in value, $ US

Australia's sugar cane import values also declined for the second year in a row in 2021, reaching 19 292 US dollars—a 33.6% drop from 2020. Between 2019 and 2021, imports decreased by 80.3%, which translates to an annualized rate of 41.8%.

Annual dynamics of product's imports to Australia in value, 2018-2021, $ US

During the 2018–2021 period, Brazil remained the main source for Australia's sugar cane imports in value terms, capturing 81.1% of total imports. The remaining volume was distributed among other countries.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Australia in value, 2018-2021