Ingredients in Focus is Food Dive’s bite-size column highlighting interesting developments in the ingredients sector.
Brazil, the world’s leading sugar exporter, is currently dealing with a significant rise in fires in its sugarcane fields, leading to a spike in prices for consumers. The fires have caused disruptions in the supply chain, with estimates suggesting that a substantial amount of sugarcane has been affected, impacting the total expected yield for the year.
The severity of this year’s fires is expected to have a greater impact than previous incidents, posing challenges for the sugarcane industry. Experts predict that mills will face production losses from the burned fields next year, affecting the overall supply of sugarcane products.
Environmental issues, including climate change-driven factors like droughts, extreme heat, and increased pest infestations, are further complicating the situation for the industry. This comes at a time when consumers are increasingly turning to alternative sweeteners, with sugar reduction being a top dietary trend globally.
While the direct land damage from the fires may be limited, the long-term effects on sugar production and related by-products are a concern. Companies are advised to invest in weather-resilient technologies to manage volatility in the market.
The sugarcane market, valued at over 2 trillion in 2023, is projected to continue growing, albeit at a modest rate. With localized milling processes and challenges in sourcing sugarcane from unaffected regions, the industry faces logistical hurdles in maintaining supply stability.
Meanwhile, other ingredients like coffee, cocoa, and olive oil have also faced supply chain disruptions recently. Some companies are exploring technological solutions to replace traditional ingredients in their products, adapting to the changing landscape of ingredient sourcing.
Overall, the sugarcane industry in Brazil and other key producing countries is navigating through environmental challenges and market fluctuations, highlighting the need for resilience and innovation in the ingredients sector.