• Mexico’s been battling drought for the past two seasons.
  • The situation may be no different in 2021/22.
  • We think it will produce 5.9m tonnes of sugar, down 200k tonnes from 2018/19.

Below Average Sugar Production in 2021/22?

  • Mexico hoped to produce 6.1m tonnes of sugar next season, up 835k tonnes from the drought-hit 2019/20.
  • However, drought is still causing problems, meaning it should produce 5.9m tonnes.
  • This is up 200k tonnes year-on-year but below what was achieved before to its recent drought issues commenced in 2019/20.
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Drought Issues Persist for Mexico 

  • Since the end of March, it’s been hot and dry in Mexico, with 71.5% of the country suffering from drought.
  • In Veracruz, Mexico’s main sugar-producing region, temperatures have climbed to 35°C and could hit 40°C.
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  • Rainfall was also low in February and March, as was the case in 2019 and 2020.
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What Does This Mean for Cane Yields?

  • As the weather’s been very similar to that of 2020/21, cane yields should be too.
  • Due to limited access to water, the cane should struggle to grow and mean less is harvested per hectare.
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  • If there was lots of sun between January and June, and then plenty of rain between July and September, the cane may have recovered.
  • This wasn’t the case though, so agricultural (cane) yields should average 70 mt/ha.

What About Sugar Yields?

  • Fortunately, dry weather (even drought) usually improves canes’ sucrose content.
  • This wasn’t the case in 2019/20, however, as the drought was so severe.
  • It was the case in 2020/21 though, so we hope to see similar sucrose yields in the upcoming season.
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Stephanie Rodriguez

Stephanie graduated from Babson College in 2020, with a bachelor’s degree in Operations Management and Data Analytics. She joined CZ in 2020 for a one year internship where she focused on developing dashboards, content and expanding our network in the Americas (excluding Brazil). Stephanie is responsible for writing content and capturing data for the Americas (excluding Brazil), presenting our market view to clients, and working on different consultancy projects.

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