Australias sugar growers fear Brazil

16 February 1999

Australia’s sugar growers fear Brazil

AUSTRALIAS beleaguered sugar-cane growers fear Brazil may pile further pressure on world markets, which are already suffering low prices.

There are fears that the devaluation of Brazils currency will add to supply with as much as 2 million tonnes more, according to John Allison, general manager of the Australian Cane Farmers Association, in the latest issue of the associations Australian Sugar Digest.

The Brazilian industry is about 10 times the size of the Australian industry.

It is viewed as having potential for expansion but is currently suffering financial problems, which in the short to medium term will mean the industry will be preoccupied with rationalisation and consolidation.

• Global sugar consumption to outstrip supply, FWi, 27 November, 1998
• Brazil to become worlds largest sugar producer, FWi, 19 November, 1998
• Financial Times 16/02/99 page 28 (News Digest)