Uruguay: Sugar Market 2022

Sugar Market Size in Uruguay

In 2021, the Uruguayan sugar market increased by 4.2% to $X, rising for the second consecutive year after two years of decline. The market value increased at an average annual rate of +2.2% over the period from 2012 to 2021; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. Over the period under review, the market reached the peak level in 2021 and is expected to retain growth in the near future.

Sugar Production in Uruguay

In value terms, sugar production fell to $X in 2021 estimated in export price. In general, production continues to indicate a perceptible shrinkage. The most prominent rate of growth was recorded in 2016 with an increase of 76% against the previous year. As a result, production reached the peak level of $X. From 2017 to 2021, production growth remained at a lower figure.

In 2021, the average yield of sugar in Uruguay stood at less than X kg per ha, remaining stable against 2020. Over the period under review, the yield continues to indicate a relatively flat trend pattern. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2021, the total area harvested in terms of sugar production in Uruguay totaled less than X ha, approximately reflecting the year before. Overall, the harvested area continues to indicate a relatively flat trend pattern.

Sugar Exports

Exports from Uruguay

In 2021, overseas shipments of sugar increased by 33% to X tons, rising for the second consecutive year after three years of decline. In general, exports continue to indicate a resilient increase. The most prominent rate of growth was recorded in 2014 with an increase of 2,447%. The exports peaked at X tons in 2016; however, from 2017 to 2021, the exports remained at a lower figure.

In value terms, sugar exports skyrocketed to $X in 2021. Over the period under review, exports posted slight growth. The pace of growth was the most pronounced in 2014 when exports increased by 1,883%. Over the period under review, the exports hit record highs at $X in 2016; however, from 2017 to 2021, the exports remained at a lower figure.

Exports by Country

Israel (X tons) was the main destination for sugar exports from Uruguay, accounting for a 84% share of total exports. Moreover, sugar exports to Israel exceeded the volume sent to the second major destination, Free Zones (X tons), sevenfold.

From 2012 to 2021, the average annual rate of growth in terms of volume to Israel amounted to +6.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Free Zones (+48.4% per year) and Switzerland (+359.3% per year).

In value terms, Israel ($X) emerged as the key foreign market for sugar exports from Uruguay, comprising 73% of total exports. The second position in the ranking was held by Free Zones ($X), with a 14% share of total exports.

From 2012 to 2021, the average annual rate of growth in terms of value to Israel was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: Free Zones (+47.4% per year) and Switzerland (+349.8% per year).

Export Prices by Country

The average sugar export price stood at $X per ton in 2021, dropping by -3% against the previous year. Over the period under review, the export price continues to indicate a perceptible decline. The most prominent rate of growth was recorded in 2016 an increase of 104% against the previous year. As a result, the export price reached the peak level of $X per ton. From 2017 to 2021, the average export prices failed to regain momentum.

Prices varied noticeably country of destination: the country with the highest price was Switzerland ($X per ton), while the average price for exports to Israel ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Jamaica (+9.9%), while the prices for the other major destinations experienced mixed trend patterns.

Sugar Imports

Imports into Uruguay

In 2021, imports of sugar into Uruguay shrank slightly to X tons, waning by -3.8% compared with 2020. Over the period under review, imports continue to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2014 when imports increased by 12%. As a result, imports attained the peak of X tons. From 2015 to 2021, the growth of imports remained at a somewhat lower figure.

In value terms, sugar imports expanded notably to $X in 2021. The total import value increased at an average annual rate of +2.4% from 2012 to 2021; the trend pattern remained consistent, with only minor fluctuations in certain years. The growth pace was the most rapid in 2020 when imports increased by 13% against the previous year. Imports peaked in 2021 and are likely to see steady growth in the immediate term.

Imports by Country

In 2021, Brazil (X tons) constituted the largest supplier of sugar to Uruguay, with a 69% share of total imports. Moreover, sugar imports from Brazil exceeded the figures recorded by the second-largest supplier, Argentina (X tons), twofold.

From 2012 to 2021, the average annual growth rate of volume from Brazil amounted to -3.5%. The remaining supplying countries recorded the following average annual rates of imports growth: Argentina (+18.5% per year) and Mexico (+54.2% per year).

In value terms, Brazil ($X) constituted the largest supplier of sugar to Uruguay, comprising 85% of total imports. The second position in the ranking was held by Argentina ($X), with a 14% share of total imports.

From 2012 to 2021, the average annual growth rate of value from Brazil amounted to +1.2%. The remaining supplying countries recorded the following average annual rates of imports growth: Argentina (+14.5% per year) and Mexico (+35.3% per year).

Import Prices by Country

In 2021, the average sugar import price amounted to $X per ton, increasing by 11% against the previous year. Over the last nine years, it increased at an average annual rate of +2.6%. The growth pace was the most rapid in 2015 an increase of 12%. The import price peaked in 2021 and is likely to see gradual growth in the near future.

Prices varied noticeably country of origin: the country with the highest price was Brazil ($X per ton), while the price for Mexico ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Brazil (+4.9%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform