Country Focus: Brazil
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Transcript of Country Focus: Brazil
Country Focus: Brazil
Al Khaleej Sugar Co. L.L.C.
World’s largest standalone sugar refinery
Pioneer in standalone destination refinery concept
Installed production capacity of 6000 metric tons white sugar per day
Worlds largest single storage capacity for raw sugar
800 employees
13 nationalities
Aggressive growth vision to be world’s best energy efficientsugar refinery
Al Khaleej SugarRefinery - Concept
Middle east has been and will remain structurally deficit sugar consumption region due to• Unsuitability for sugarcane/beet production• High Per capita consumption of 34 kg per annum• Higher population growth rate leading to sugar
consumption growth
Advantage of bulk freight for imports
Advantage of zero freight for container exports from UAE
Zeroing at Brazil for raw sugar supplies
Why Brazil?
World’s largest sugar producer Continuous exportable surplus availability World’s lowest cost sugar producer historically Expansion potential due to availability of suitable
land and sugarcane production resources Best quality of raw sugar
Al Khaleej Sugar&
Brazil
Importing raw sugar from Brazil since 1995
Al Khaleej Sugar imports from Brazil in last 10 years as per above
Was partner with sugarcane growers cooperative of Brazil (Copersucar) to enhance sugar producing cane varieties
Largest single destination buyer of raw sugar
Key Challenges ahead
Port congestion and logistical/road movement constraints from mills to port during the peak sugar movements
Brazil’s position as a predominant supplier of sugar to the world adds to price volatility for world market
Switch between ethanol and sugar production due to prevailing market creates uncertainty
Draft at Santos/Parangua (key sugar export port ) needs to be increased for accommodating Panamax size vessels
Message
Al Khaleej Sugar’s one and a half decade businessexperience with Brazil has been productive
and positive and we look forward to continuedgrowth in our business with Brazil
Thank You