A sugar mill is a facility where sugar cane is milled and processed into raw sugar. Occasionally sugar mills will also function as refineries, producing ICUMSA 45, ICUMSA 100, ICUMSA 150, and other types of refined sugar. Sugar mills have seen a considerable boom over the past five years, as the global sugar market continues to expand, and other sugar cane products such as sugar ethanol have seen a substantial rise in popularity. Investment in sugar mills has also been steadily rising during this time, sparking further developments in sugar technology as well as fueling expansion of many existing mills.

Through The Sugar Mill

The basic function of a sugar mill is to mill sugar cane. After the sugar cane is harvested in the field, it is brought to the sugar mill, where it is washed to remove dirt and bugs, stripped of any remaining leaves, and then set on a conveyor belt which carries it to a shredding device. The sugar cane is chopped and shredded then passed through a series of rollers, which squeeze the natural juices from the fiber of the cane.

At the end of this process, the mill is left with two products. There is the brown juice which contains high levels of sucrose, and the dry fiber of the sugar cane, which is known as bagasse. In many cases bagasse is burned to fuel the mill, and in others it may be sold to be used in other applications, such as charcoal briquettes, and disposable tableware.

The sugar juice, known as “raw juice” is usually strained and sieved to remove the small particles of bagasse and other biomatter which can escape with the juice through the rollers. The water in the raw juice is then evaporated to leave behind dark sticky brown crystallized raw sugar. In some cases product may be sold as is, or in other cases, the mill may process it further on site.

If the mill is producing VHP raw sugar, instead of evaporating the water from the raw juice, the juice is boiled to concentrate it, and when cooled, sugar dust is added to the juice. This encourages crystallization of the sucrose in the juice. When crystallization has taken place, the mix is sent into a centrifugal chamber, which is simply a rotating drum. The chamber rotates at very high speeds, separating the solid sugar crystals from the liquid. The resulting crystals are VHP raw sugar. This process is repeated on the separated liquid twice more in order to extract all the possible sucrose.

Some sugar mills also incorporate sugar ethanol production facilities. As sugar prices have fallen, and demand for alternative fuels has increased, sugar ethanol has become a big earner for many sugar mills.

Brazil’s Sugar Mills

The world’s leading sugar mills can be found in Brazil, where the sugar mill has become something of an art form. Brazilian sugar mills are incredibly efficient, so efficient in fact, that many of them actually generate power in the process of milling sugar cane, and make a profit by selling energy back to the national grid. Their outputs are among the highest of any mills in the world, and whilst this is due, in part, to the sheer volume of sugar cane processed in these mills, a great part of it is to do with finely tuned technology and a scientific approach to the business of milling sugar cane.

Sugar mills employ a wide range of employees, from unskilled laborers to highly trained scientists. Manual laborers carry out basic tasks, whilst sugar scientists analyze sugar cane, processes, and products. Many mills go so far as to develop their own strands of sugar cane, specifically suited to their needs, and many of the innovations that have taken place in the field of sugar technology have been through the endeavors of these private sector scientists.

Research and development is an important part of business for many major sugar mills, and the technologies which are developed in the major Brazilian sugar mills are often then shared throughout the world. VHP raw sugar originated in Brazilian sugar mills, and teams of Brazilian sugar scientists, many working in the private sector, were responsible for sequencing the sugar cane genome.

Efficiency is the watchword for a Brazilian sugar mill. Many sugar mills recycle the water which is used to wash sugar cane after it is brought in from the field, channeling the water back to ponds where it can be used for irrigation, and where the dirt and silt carried along with it can settle to the bottom where it can be gathered and used as fertilizer.

In order to ensure that processes are efficient as possible, sugar mills often employ efficiency teams who work to ensure that the mill’s processes, machinery, and workers are all being maximized to their full potential.

Because sugar mills tend to be located in countries with large populations of poor people (Brazil, India, Thailand, and China, to name a few), sugar mills are often a major source of employment for local workers as well as seasonal ones who will often travel long distances to arrive for the harvesting season. In the case of Brazilian sugar mills, these seasonal workers are given accommodation and meals for the duration of the harvest. Whilst this might seem extravagant, it is simply another way to maximize productivity. Well rested, well fed harvesters work far more efficiently than those who are tired or ill. Good harvesters are an important asset to the sugar mill, and are often rewarded with incentives which keep them returning year after year. The harvest is back breaking work, but it also requires a level of skill so as to not damage the roots of the plant whilst removing the stems, so good harvesters are worth a great deal to a sugar mill.

In the case of Brazilian sugar mills the sugar cane plantation which provides the cane for the mill is usually owned by the mill itself, this allows the mill to control the quality of the product right from the time it is planted. Other countries, such as India, do not follow this paradigm, and as a result often have more problems sourcing quality sugar cane for their mills.

Sugar Environmental Impact

Brazil’s Sao Paulo region refused to issue new licenses to sugar mills in mid 2007 amid fears about the environmental impact the rapidly growing sugar industry was having. Whilst sugar mills are relatively ‘green’, recycling water and bagasse, and generating enough power to run their operations without drawing from the national grid, there are some areas of operation where the environment can be impacted negatively. Run off from fertilizers can affect water supplies if sugar cane fields are too close to rivers, and the carbon produced when fields are burned for the harvest is no small matter either, sending black clouds full of carbon billowing into the sky. Then there is the additional burden of having an influx of harvesters into the region periodically, not to mention increased production facilities and plantations themselves cutting into the habitats of local creatures.

Outside Brazil, rapid expansion in the sugar industry is causing similar concerns to be voiced in other sugar producing countries where mills are often less advanced and less environmentally friendly. Like any industrial operation, environmental impact must be carefully monitored, however the good news concerning sugar mills is that there are many ways to reduce negative environmental impact through sustainable technologies, attention to recycling, and responsible manufacturing processes.

Buying Sugar directly from the Sugar Mill

We will assist you in sourcing sugar directly from Brazilian sugar mills. Please contact us and let us know your specific requirements. We will get back to you within the day

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As one of the world’s most widely traded commodities, the trading of sugar can be a complicated endeavor, with natural phenomena, political concerns, and other factors such as fuel prices all impacting heavily on the market. Much sugar is traded on futures markets, by which supplies can be secured years ahead of time. This is advantageous for large corporate entities which require secured ongoing sugar supplies. For those requiring more flexibility, or who enjoy playing the market, spot trading provides the ability to purchase sugar when the timing is right, or to take advantage of short term dips in the market.

Sugar Spot Trading

Spot trading involves purchasing a currency or commodity (in this case, sugar), at the current market rate for immediate delivery. Unlike other forms of sugar trading, in which shipments are often sent over a period of many months, in spot trading, sugar is reserved for the soonest possible delivery and payment is made in relatively short order. Sugar spot trading therefore involves relatively small amounts of product which have already been produced, unlike traditional sugar trading which quite often concerns sugar that has yet to be grown, yet alone refined.

2008/2009 Trading Trends

Spot trading is on the rise amidst one of the largest global sugar surpluses in recent history. It is estimated that Brazil and India alone will produce a combined amount of around 60 million tons in the 2008/2009 period, and a global sugar surplus of around eleven million tons is predicted for the same period. For this reason, sugar prices are in something of a depression at the present time, though shipping costs, rising on the back of increased fuel prices could see export prices rising into the future.

A quick breakdown of major sugar exporting countries goes thus:

Brazil 20.9 MT
Thailand 5.8 MT
India 4 MT
Australia 3.9 MT
SADC (Southern African Development Community) 2.3 MT
Guatemala 1.9 MT
Europe 1.2 MT

Brazil retains its title as the largest exporter of sugar, exporting roughly two thirds of its total production. Though India’s production continues to climb to comparable levels with Brazil, exports have been limited due to fears that the sugar market could become saturated and prices could fall below profitable levels if large amounts of Indian sugar were to be exported. In 2007, India’s exports were a mere 1.34 million tons, but this number is set to climb in the coming years as India increasingly seeks export markets for its sugar.

Sugar Trading Tarrifs

Global sugar trading is further made interesting by the many countries which place tarrifs on imported sugar in order to provide stimulation to local sugar producers. It is not uncommon for governments to subsidize local sugar production in order to encourage local production and consumption, even during times when it would ostensibly make sense to take advantage of lower prices available on the export market.
Some countries use their sugar tarrifs to restrict the product of certain countries, whilst encouraging others. For instance, the United States has no tarrifs on sugar imported from third world nations, a policy which aims to stimulate economic growth in those regions.

Sugar Commodities Exchange

Sugar is traded on several commodities exchanges. Some of the more popular exchanges include: Intercontinental Commodities Exchange (ICE) – formerly the NYBOT, the London Futures Exchange (LIFFE), Commodity Exchange Inc (COMEX), and the Coffee, Sugar, and Cocoa Exchange (CSCE).

Anyone with a vested interest in sugar trading would be well advised to subscribe to these markets, as they are an irreplaceable source of data not just on current market value, but also on trends which can have a strong impact on future trading decisions.

Direct Sugar Export

Nowadays sugar importers often buy directly from the sellers (not the market). We work with several US and EU hedge funds who own Brazilian sugar allocations in large quantities. We also source sugar directly from a Brazilian jointly owned commercial enterprise, which is in control of over 200 sugar mills. Lastly, we also work with individual Brazilian sugar mills. Because of that, we are able to fill an order of any reasonable size, starting with the minimum 12.500 metric tons to multi million ton orders. Please contact us through the below form and let us know your exact requirements. We will get back to you with sugar availability and price quotation shortly

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Brazilian sugar is grown in two major regions in Brazil, the larger of these is the Sao Paulo region. Located in the center south of the country, it is known for its vast fertile plains, much of which have been turned over to sugar cane production over the past decades as sugar has become an increasingly viable crop, and as interest in sugar ethanol as a form of alternate fuel has also grown.

The other major growing region is in the northern states of Pernambuco and Algolas. Though these states are much less fertile and boast rugged terrain which is not nearly as well suited to the cultivation of sugar cane, they are the historical home of sugar production in Brazil. They are also the main regions of expansion, as the Sao Paulo region recently cut permits for new sugar mills in that jurisdiction due to environmental concerns, leaving would be developers to seek other regions in which to build their mills.

Global demand for sugar has continued to increase over the years, with population growth and the growing popularity of the Western style diet accounting for much of this growth. Production has also increased in many countries, and India in particular is now a solid rival to Brazil in the production stakes, though its exports are significantly lower than Brazil’s.

The great majority of Brazil’s sugar exports are in the form of VHP raw sugar, a raw sugar product that has undergone some processing to increase its polarity. VHP raw sugar contains no less than 99.4% sucrose, is a light brown color, and is in great demand by refineries around the world. VHP raw sugar is a Brazilian invention, created in 1993 as an answer to the inherent inefficiency of carting large amounts of raw sugar around the world only to lose a great deal of it to the refining process due to the fact that so much of it was made up of liquids and contaminants. Refineries soon saw the benefits to using a high sucrose raw material instead of traditional raw sugar, and the Brazilian sugar industry went from strength to strength after its invention.

VHP sugar is made by boiling the raw cane juice to concentrate it, allowing the sucrose crystals to crystallize in the solution, and then centrifuging the material. The products of the centrifugal process are VHP sugar, and molasses, which can be used for animal feeds or human health supplements depending on the grade of the product.

Brazil’s domination of the global sugar market has arisen through both agricultural prowess, technical innovation, and an emphasis on research and development. Though other countries, such as India, are now beginning to approach Brazil in production levels, they still lag behind the sugar giant in terms of growing practices, production quality, and biochemical prowess.

Brazil has always placed great importance on researching sugar, and even went so far as to sequence the sugar cane genome. As a result of this, and other related endeavors, there are now hundreds of different strains of sugar cane in Brazil. These strains have been designed for greater sucrose yield, for more successive generations of growth (sugar cane is usually left to grow for several generations, being harvested each season by cutting off the cane, but leaving the roots to grow again and again in successive seasons until the sucrose content of the newly grown cane dips below acceptable levels, or the roots become too damaged to grow healthy sugar cane, at which point the field is tilled and fresh cane sown), and to grow in difficult conditions.

Equal attention has been paid to the physical processes associated with milling sugar cane and refining sugar. Most Brazilian sugar mills have efficiency teams whose job it is to streamline and economize all processes in the plant. Recycling is also a high priority, with the sugar cane fiber often burned to power the facility. So efficient are Brazilian mills that they often manage to sell power onto the national grid because the burning of the bagasse (a name given to the fibrous part of the sugar cane discarded after crushing) provides more than enough energy to power the plant.

Purchasing Brazilian Sugar

The majority of Brazilian sugar is sold on the futures market before it is grown, but it is possible to occasionally secure smaller amounts of sugar on a spot basis, which means that the current market price is paid for a relatively small shipment. Spot prices can fluctuate wildly based on world events, domestic trends, oil prices, and other factors.

Brazilian sugar is usually sold CIF, meaning Cost, Insurance, and Freight. The price therefore includes the cost of the sugar, insurance on it until such time as it arrives at the destination port, and the freight to get it there. The seller must organize freight with a suitable carrier, and organize SGS inspections at the port of departure. It is standard practice for shipping documents, SGS certificates, and other relevant documentation to be presented before the seller is paid for the goods. To achieve this, a fully funded letter of credit is the standard financial instrument used in sugar trading, though there are other payment methods available to interested parties at the seller’s discretion.

Spot sugar trading is advantageous for buyers looking for smaller amounts of sugar in a timely fashion, or those who wish to take advantage of a dip in prices to boost their sugar reserves. If you would like more information on purchasing Brazilian sugar, please contact us to discuss your needs.

Brazilian Sugar Exporters

We source sugar directly from a Brazilian jointly owned commercial enterprise, which is in control of over 200 sugar mills. We also work with several US and EU hedge funds who own Brazilian sugar allocations in large quantities. Lastly, we also work with individual Brazilian sugar mills. Because of that, we are able to fill an order of any size, starting with the minimum 12.500 metric tons of sugar to multi million ton orders. Please contact us through the form below and include your specific requirements. We will get back to you with sugar availability and price quotation shortly

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Brazilian Sugar

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