Wilmar taps into Brazil's sugar market

It is through a JV with Raizen.

As it sees huge potential in Brazil's sugar production industry, Singapore's agribusiness group Wilmar International Ltd. unveiled a joint venture with local sugar producer, Raizen Energia S.A.

In a joint statement, the group announced the creation of a new joint venture called Raízen and Wilmar Sugar Pte. Ltd. (RAW) to meet the growing global demand for Brazilian very high polarization (VHP) sugar.

RAW will export Raizen's output of around 3 million metric tons of VHP sugar. With Wilmar's origination in Brazil, the two claimed that RAW will be one of the largest exporters of Brazilian sugar to the world with a total volume of around 4.5 million metric tons annually.

According to OCBC Investment Research, VHP sugar has high sucrose content at around 99.4%.

“Its sugar crystals are easier to refine into white sugar, making it one of the most sought-after raw sugar export globally,” the brokerage firm noted.

Meanwhile, RAW CEO and Wilmar Group Head of Sugar Jean-Luc Bohbot said the JV company will offer high level of service and information to the group's clients.

"Our project is a new step towards improving client service in the global sugar market, based on the complementary strengths of Raízen and Wilmar and their consolidated leadership position in the respective market segments in which each of the companies operate,” he said.