GLOBAL MARKET REPORT Sugar cane prices and sustainability

The report examines the global sugar cane sector, highlighting the role of voluntary sustainability standards (VSSs) in promoting resilience and sustainability. It analyzes how climate change, geopolitical conflicts, and government interventions distort market prices and affect the livelihoods of millions of smallholders. The document provides a detailed look at the value chain, where refiners and traders capture the most value, and suggests pathways for improving farmer incomes through diversification, better policy frameworks, and the expansion of sustainable sourcing.

• The global sugar cane sector is a massive employer, with cultivation and processing providing jobs for over 100 million people across approximately 120 countries.
• Climate change poses significant risks to yields; for example, Thailand's sugar cane yields are projected to drop by 24% to 33% between 2046 and 2055, which would reduce the global sugar supply by 3% to 4%.
• VSS-compliant sugar cane production grew at a compound annual growth rate (CAGR) of 46%–47% between 2008 and 2019, eventually representing 7%–8% of total global production.
• The sugar cane value chain is highly concentrated, with six firms—Bunge, Cargill, Czarnikow, ED&F Man, Louis Dreyfus, and Sucden—controlling two-thirds of the international trade in raw and refined cane sugar.
• Market prices are heavily distorted by government interventions, such as the United States using high tariff-rate quotas to restrict imports and India fixing a 'fair and remunerative price' for sugar cane.
• VSSs like Fairtrade and Bonsucro provide premiums that can make certified products more competitive; for instance, producers associated with Fairtrade may receive prices up to 13% higher than those selling conventional raw cane sugar.
• The Russia-Ukraine conflict has severely impacted the sector by causing fertilizer prices to climb 230% since May 2020, which increases production costs and may lead to lower yields in the 2023/2024 season.
• Diversification into biofuels and other by-products is a key strategy for increasing income; Brazil's National Biofuels Policy (RenovaBio) has created additional revenue streams by allowing producers to switch between sugar and ethanol production.

APA

Voora, V., Bermúdez, S., Le, H., Larrea, C., & Luna, E. (2023). GLOBAL MARKET REPORT Sugar cane prices and sustainability. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-09/2023-global-market-report-sugar-cane.pdf

Chicago

Voora, Vivek, Steffany Bermúdez, Han Le, Cristina Larrea, and Erika Luna. GLOBAL MARKET REPORT Sugar cane prices and sustainability. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-09/2023-global-market-report-sugar-cane.pdf.

Wikipedia

{{cite report |last1=Voora |first1=Vivek |last2=Bermúdez |first2=Steffany |last3=Le |first3=Han |last4=Larrea |first4=Cristina |last5=Luna |first5=Erika |title=GLOBAL MARKET REPORT Sugar cane prices and sustainability |publisher=International Institute for Sustainable Development |date=September 2023 |url=https://www.iisd.org/system/files/2023-09/2023-global-market-report-sugar-cane.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{voora2023global, author = {Voora, Vivek and Bermúdez, Steffany and Le, Han and Larrea, Cristina and Luna, Erika}, title = {{GLOBAL MARKET REPORT Sugar cane prices and sustainability}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = sep, url = {https://www.iisd.org/system/files/2023-09/2023-global-market-report-sugar-cane.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }