Brazilian Agriculture Ministry Reports Significant Drop in Sugar Output from Key Producing Region Through Late June 2026/27 Season

As of July 27, UNICA has not yet released its latest production data, but the Brazilian Ministry of Agriculture has published official figures for the second half of June and the cumulative production since April 1.

According to data from the Ministry of Agriculture, total sugarcane crushing in the center-south region of Brazil reached 31.15 million tonnes in the second half of June 2026, a decline of 28.4% compared to the same period last year.

The primary reason for this sharp drop in crushing volume was unusual rainfall during the period, which disrupted sugarcane harvesting and mill processing schedules. In terms of production, the center-south region produced 1.61 million tonnes of sugar in the second half of June, a steep year-on-year decline of 44.2%. Ethanol output fell by 13.1% to 1.7 billion liters.

For the 2026/27 season, which began on April 1, mills in the center-south region had crushed a cumulative 216.48 million tonnes of sugarcane through the end of June, representing a 4.5% increase compared to the same period in the 2025/26 season. However, cumulative sugar production reached 10.73 million tonnes, a decrease of 12.7% year-on-year. In contrast, ethanol output reached 11.51 billion liters, an increase of 20.1% year-on-year.

As of the end of June, Brazilian sugar mills still favored ethanol production over sugar. More specific data, including the sugar-ethanol mix ratio, await release from UNICA. A detailed analysis of the report will be provided upon its publication.