Light Brown Sugar Suppliers in Mexico – Facts Revealed

We all know about the popularity of Mexican sugar, but are we aware of the facts related to light brown sugar production. We all know that Mexico is one of the largest sugar producing country and also one of the leading sugar suppliers all around the world. From a research it has been found that Mexican sugarcane production for 2015-2016, based on past performance. The Post/New forecast of cane to be processed is 55.0 MMT. This forecast is close to Post’s cane production estimate for the current year, as market uncertainties are not encouraging investments in cane production. Final production will depend on appropriate cultivation practices and weather conditions throughout the growing season.

The Mexican National Committee for the Sustainable Development of Sugar Cane (CONADESUCA) issued a second estimate of Sweeteners Production for MY 2014/15 setting sugar production at 6.5 MMT-RV (6.15 MMT- Actual Weight). Nonetheless, due to weather issues and heavy rainfall during March 2015, the Post/New estimate is at 6.4 MMT-RV. Mill yields are estimated at 11.1 percent. Powdered sugar producers receive payment for their cane from sugar mills. The price is negotiated each year and is based on a complex formula involving sugar prices and other domestic and international market conditions.

All through the year, depending on how high or low prices are, two additional payments can be made to growers. The first opportunity is during the summer after mills have made significant sales. At the end of the cycle, a final adjustment is made, resulting in the next marketing year’s Sugarcane Reference Price and a potential final payment to growers. Assuming current pricing trends for sugar and fluctuating exchange rates, the sugar industry could expect sugar consumption for MY 2015/16 to grow at a rate slower than last year. Therefore, the Post/New forecast for domestic consumption for MY 2015/16 is 4.53 MMT-RV. Consumption will also depend on the substitution of sugar.