Brazil needs investment of at least US$340bn to meet global sugar demand, according to an international trading and analysis house.
The Czarnikow Group yesterday (15 September) published reports outlining how the costs of sugar production are forecast to rise by 85% thanks to soaring global demand for sugar and ethanol over the next 20 years
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It says Brazil will need between US$340bn and US$490bn to develop infrastructure to crush at least 1.4bn tonnes of cane by 2030.
Toby Cohen, a director at Czarnikow, claims that Brazil will remain central to the world sugar market over the next two decades.
He said: “To meet rising demand for both sugar and ethanol at least $340bn of investment will be needed in land and mill development, coupled with investment in supporting infrastructure. “Over this period, costs of production in the main sugar producing areas of Brazil are predicted to rise significantly – by 85%.
“The rise in costs will primarily be driven by wage inflation, but growth in costs associated with mechanisation, infrastructure development and expansion will all play a part. These two issues will challenge the industry and the global sugar market in the decades ahead.”
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