The agribusiness giant and commodities trader Cargill is in talks with Brazil’s Copersucar to exit their sugar trading joint-venture, Alvean, and focus on its food processing and meat production businesses, according to Reuters and Bloomberg.
Brazilian sugar and ethanol merchant Copersucar posted a consolidated net profit of BRL119 million (US$21.7 million) in the 2019/20 campaign (April to March) – a 33% drop compared to the previous season. However, total sales were up 5% to BRL30.1 billion (US$5.48 billion).
The Brazil-based Copersucar expects sugar output fall by 5 million tonnes in the Centre-South over the 2018/19 campaign commencing in April, as mills divert more cane to ethanol production instead, reported Reuters.
GVO, one of the founding members of Copersucar in 1959, is the latest mill to break commercial ties with the trader. That curbs Copersucar’s marketing power not only in Brazil, but also globally, as just a year ago it set up Alvean, a joint venture with agricultural merchant Cargill.