A more bitter planet: The world lacks sugar, but Argentina misses the chance to supply it so as not to neglect the markets

Published Feb 18, 2024

Tridge summary

The global sugar market is predicted to face a deficit of 500 thousand tons by 2024 due to reduced production in Brazil and increased use of sugar for biofuel in countries like India, Indonesia, and the Philippines. This is expected to impact the Middle East and southern Mediterranean countries, which are major sugar consumers. Meanwhile, Argentina's sugar exports to Chile have grown significantly due to the closure of several sugar beet mills in Chile, increasing from 50 to 150 thousand tons in recent years. However, Argentina is unlikely to fill the global sugar gap due to its domestic and alcohol production commitments.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

For three years now, a particular phenomenon has been recorded in the world sugar market: there is less availability of this product in relation to demand. This sets off alarm bells thinking about this year 2024, because a global deficit of 500 thousand tons of sugar is already expected this year, something that will surely have an impact on some countries in the Middle East and the southern Mediterranean, the main consumers of this product. This deficit has several factors. One is that Brazil, the main global sugar producer, has seen its production reduced due to the drought for three years, marking the global downward trend. Just this year it had a very good harvest after several very bad ones. The second factor that affects this reduction is that there are countries that have significantly increased the use of the crop to produce bioethanol for fuel, such as India, Indonesia or the Philippines. Argentina did it too, but our volumes are insignificant globally. Thus, with an ...

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