We asked Willian Pereira, who holds a PhD in agronomy, specialises in sugarcane production, and is currently a professor in the Department of Plant Sciences at UFRRJ in Brazil, to tell us about the sugarcane industry in his country.
What is the current state of sugarcane cultivation in Brazil?
Sugarcane cultivation in Brazil is currently stable, with a slight upward trend. The country maintains its position as the world’s leading producer of sugarcane, ethanol and sugar, supported by strong integration between agriculture and industry. Technological advances, investments in mechanisation and the use of more productive varieties have contributed to increased efficiency, despite the challenges posed by climate and logistics.
How many hectares are cultivated and how many tonnes are produced each year?
During the 2024/2025 harvest, the area planted with sugar cane in Brazil was 8.77 million hectares, with a total production of approximately 677 million tonnes and an average yield of 77.2 tonnes per hectare. The main producing states are São Paulo, Goiás, Minas Gerais, Mato Grosso do Sul and Paraná.
Is production decreasing or increasing?
Domestic sugarcane production has been relatively stable in recent years, but has grown significantly in the last two harvests, recovering from the adverse weather conditions experienced in previous cycles. The 2023/24 and 2024/25 harvests set production records, with the 2023/24 harvest being the largest ever in the country’s history, at 713.2 million tonnes.
What are the explanations and consequences?
This exceptional result can be explained by favourable weather conditions, which provided ideal rainfall and enabled a significant recovery in agricultural productivity, with an average of 87.2 tonnes per hectare, 19% more than the previous harvest. The state of São Paulo led this growth, with a 23.24% increase in milling and a 23% increase in productivity.
The harvest also benefited from the adoption of technologies in the field and in industry, larger harvested areas, greater operational efficiency and a longer crushing period. Despite a slight reduction in the quality of raw materials, gains in volume and yield consolidated simultaneous records for sugarcane, ethanol and sugar production.
Among the various positive consequences are increased availability of ethanol and sugar, increased revenues, stimulation of the economy and bioenergy production, and a stronger position for Brazil in the international market. It also stimulates investment in the sector and contributes to fuel price stability. However, special attention must be paid to sustainability, good management of natural resources, and logistics and distribution capacities to ensure balanced and efficient growth.
How is the cachaça supply chain performing in Brazil?
The cachaça supply chain in Brazil is experiencing growth and consolidation, combining cultural tradition with advances in professionalisation and product promotion. In 2024, the country had 1,266 production facilities, representing a 4% increase over 2023 and marking the third consecutive year of growth.
National production is approximately 1.3 billion litres per year, with 70% industrial production and 30% artisanal production. Minas Gerais stands out, accounting for 60% of artisanal production and 41.4% of registered distilleries. However, only 0.5 to 1.0% of production is exported, indicating significant potential for the internationalisation of the drink.
The number of approved products has also increased significantly, reaching a total of 7,223 registrations in 2024, with Minas Gerais leading the way with 2,492. The Southeast region is home to more than 800 cachaça distilleries, accounting for 59% of reported production and 46.4% of direct employment in the sector, for a total of 6,363 jobs. The supply chain moves approximately R$15.5 billion per year and plays an important role in rural employment during the agricultural off-season.
Despite challenges related to modernisation, regulation and market access, the sector stands out for the growth of premium and artisanal cachaça, with an emphasis on quality, certifications and exports, particularly to Europe and North America.
With 98% of producers classified as small and medium-sized and more than 10,500 brands registered with the INPI (National Institute of Industrial Property), cachaça is not only Brazil’s national drink by federal decree, but also a symbol of Brazilian identity that is increasingly recognised in the global trend for craft beverages.
What are the different uses of sugarcane in Brazil?
Sugarcane plays a fundamental role in Brazil’s economy, energy matrix and culture, with a diversity of uses that extends beyond traditional sugar production.
In the industrial sector, sugarcane is used to produce different types of sugar, such as white sugar, VHP sugar, Demerara sugar, organic sugar and brown sugar, in addition to producing anhydrous and hydrated ethanol that supply both domestic and export markets, thus contributing significantly to the country’s renewable energy matrix.
Sugar cane biomass, particularly bagasse and straw, is used for bioelectricity production in thermoelectric power plants, consolidating the sugar-energy sector as one of the main producers of clean energy in Brazil.
The sector has also played an important role in the development of bioproducts, such as bioplastics, cosmetics, organic acids and green solvents. Bioenergy research is advancing thanks to investments in second-generation ethanol and the use of biomass to produce sustainable aviation fuels (SAF).
In family farming and local markets, sugarcane is widely used in the production of molasses, rapadura and brown sugar, representing an important economic and cultural source for small producers. Sugarcane biomass is also used in animal feed, serving as an energy source for ruminants.
Finally, the consumption of fresh sugarcane juice, in its natural form, is a popular traditional drink found at fairs and public events, reinforcing the cultural link between sugarcane and the daily lives of Brazilians. This multiplicity of uses highlights the strategic importance of sugarcane for Brazil in economic, environmental, social and cultural terms.
Does Brazil export molasses?
In 2024, Brazil exported approximately 90,342 kilograms of sugar cane molasses, generating a total FOB value of USD 83,660. Although the volume is modest in the trade balance, the data shows a diversification of destinations and a regional concentration of exports.
The state of São Paulo accounted for approximately 55% of the total value of exports (£45,179) and 64% of the volume of exports (57,476 kg), establishing itself as the country’s main centre for molasses exports. Next came Minas Gerais with 21% of the value (£17,326) and 5.5% of the volume (5,075 kg), and Rio Grande do Sul with 10.8% of the value (£9,447) and 3.6% of the volume (3,135 kg).
Among the destinations, Chile ranks first with 32% of the value of exports (USD 26,825) and 58% of the volume (52,000 kg), followed by Uruguay with 20% of the value (USD 16,789) and 27% of the volume (24,640 kg). Portugal ranks third with 14% of the value (USD 16,299 when all states are added together) and approximately 5% of the total volume exported.
The United States, combining shipments from different states, received USD 12,633 (15% of the total) and 3,872 kg (4.3%). Other important markets are the Netherlands, Belgium, Paraguay, Ireland, Switzerland, Colombia, the United Kingdom and various Caribbean and Pacific islands such as the Marshall Islands, the Bahamas and Barbados, which together account for the remaining 9% of the total value of exports.