Sugar

Strong Core Performance

Our core sugar business performed well, achieving strong results in the merchandizing of refined and white sugar, as well as improved profitability in raw sugar.

New Power Trading Business

As part of LDC’s strategy to diversify revenue streams, the Platform entered the power trading business in Brazil in 2022, expanding our sugar and ethanol business operations to also cover energy co-generated from sugarcane biomass.

Capitalizing on Risk & Research Management

In 2022, growth in consumption drove strong global demand for sugar, while stocks increased as a result of concerns over supply chain risk. In this context, the Platform leveraged risk management and research expertise, together with our large physical presence, to maximize arbitrage opportunities.

Enrico Biancheri
Head of Sugar

“Despite a complex environment, we met customer demand and consolidated LDC’s position as a leading sugar merchant, by continuing to develop our presence at both origin and destination, and in both raw and white sugar markets. We also expanded our scope and diversified revenue streams with our new power trading business in Brazil, as part of strategic growth plans.”

More Sugar Highlights

While India produced a record-breaking sugar crop and doubled exports to market, drought-hit cane yields reduced Brazil’s exportable surplus. The Platform successfully navigated resulting tight raw sugar trade flows.

Thanks to a diversified footprint at origin, combined with supply chain logistic and risk management expertise, we improved origination capabilities in both Brazil and India, while positioning LDC as India’s top sugar exporter.

The Platform recorded a 2% growth in total volumes originated, and an 8% growth in total volumes sold globally. In 2022, half of all white sugar volumes sold were to Africa, making the region a strategic destination for the Platform.

We implemented a satellite-based deforestation monitoring tool for our customers at both origin and destination, which offers real-time imagery, tracking, statistics and analytics.

We continued to grow our inland freight service to Brazilian clients, expand the use of quantitative tools both in our research and trading, and develop new long-term sugar offtake and supply contracts with over 200 customers.

In order to stay close to key partners and sustain our competitive advantage, we refocused our customer centricity strategy by creating account plans for key strategic clients.

Top 3

sugar exporter in India

Top 3

sugar importer to China

>50%

growth year on year, in Bonsucro-certified sugar sales