Brazil: Sugar Annual

Brazil remains the world's largest sugarcane and sugar producer. Despite higher sugarcane production forecast for MY2026/27, the harvest is expected to favor ethanol over sugar production, reducing sugar output and exports. This shift is directly linked to domestic gasoline prices, since higher gasoline prices make ethanol more profitable relative to sugar, changing the production mix accordingly. Brazil is the second-largest recipient of the U.S. sugar tariff-rate quota, representing approximately 14 percent of the total TRQ, and has consistently met its allocation in recent years. On January 17, 2026, the EU and Mercosur signed an agreement granting Mercosur exporters duty-free access for 180,000 metric tons of raw cane sugar for refining. The EU-Mercosur quotas to be assigned to Brazil will be allocated exclusively to North-Northeastern sugar producers, consistent with the allocation methodology for U.S. sugar TRQs and in accordance with specific federal legislation.