International trade is the primary focus for commodity merchants. Trade houses have specialised in trading specific commodities, becoming experts at connecting producers, who have a surplus which needs to be marketed abroad, with consumers, such as stockists or industrial users, in importing countries. These countries often face domestic supply shortages or lack the conditions necessary to produce sufficient sugar.
From an academic perspective, international trade is viewed as the ultimate expression of competitive advantage between nations and industries. It can reflect various factors, such as differences in agriculture systems or disparities in processing and production methods. Equally important, though less attractive, is the variation in the willingness of national governments to support an industry or farmers in general. While the trade in sugar has been ever evolving, the last two decades has seen the emergence of Brazil as the biggest exporter. Brazilian exports, which are predominantly in the raw sugar form, have grown significantly to over half of annual global raw sugar traded.
More broadly, global trade has accelerated, with goods flowing from one side of the globe to the other using a range of different transport modes. Air freight, container freight and even parcel logistics are all part of the modern reality, while commodities have remained singularly associated with bulk carriers and other dedicated logistic options.
This study outlines the impact of recent changes in global sugar trade, towards a higher share for raw sugar, as well as the evolution of the importing country’s sugar operations in order to accommodate this change. Furthermore, there is a requirement for these raw sugar import facilities to be of certain operational size, while having the ability to procure raw sugar and other inputs (particularly energy) at a competitive price.
There are also potential challenges around the supply of white sugar to infrequent importers or countries where port-refining is not an option. These buyers have found little traction with major exporters of white sugar and are consequently dependent on refiners within the region, but beyond national boundaries and domestic control.
Introduction
1. World Trade and World Sugar Trade
1.1 World Trade
1.2 World Sugar Trade
1.3 Separating Raw and White Sugar Trade
2. Global Sugar Trade Logistics and Contract
3. Raw Sugar Trade
3.1 Raw Sugar Exporters
3.2 Raw Sugar Importers
4. White Sugar Trade
4.1 White Sugar Exporters
4.2 White Sugar Importers
5. Prospects, Outlook and Conclusion