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Country Focus: Brazil. Al Khaleej Sugar Co. L.L.C. World’s largest standalone sugar refinery Pioneer in standalone destination refinery concept Installed production capacity of 6000 metric tons white sugar per day Worlds largest single storage capacity for raw sugar 800 employees
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World’s largest standalone sugar refinery • Pioneer in standalone destination refinery concept • Installed production capacity of 6000 metric tons white sugar per day • Worlds largest single storage capacity for raw sugar • 800 employees • 13 nationalities • Aggressive growth vision to be world’s best energy efficient sugar refinery
Middle east has been and will remain structurally deficit sugar consumption region due to • Unsuitability for sugarcane/beet production • High Per capita consumption of 34 kg per annum • Higher population growth rate leading to sugar consumption growth • Advantage of bulk freight for imports • Advantage of zero freight for container exports from UAE
Why Brazil? • World’s largest sugar producer • Continuous exportable surplus availability • World’s lowest cost sugar producer historically • Expansion potential due to availability of suitable land and sugarcane production resources • Best quality of raw sugar
Al Khaleej Sugar& Brazil • Importing raw sugar from Brazil since 1995 • Al Khaleej Sugar imports from Brazil in last 10 years • as per above • Was partner with sugarcane growers cooperative of Brazil • (Copersucar) to enhance sugar producing cane varieties • Largest single destination buyer of raw sugar
Key Challenges ahead • Port congestion and logistical/road movement • constraints from mills to port during the peak • sugar movements • Brazil’s position as a predominant supplier of sugar to • the world adds to price volatility for world market • Switch between ethanol and sugar production due to • prevailing market creates uncertainty • Draft at Santos/Parangua (key sugar export port ) • needs to be increased for accommodating Panamax size vessels
Message Al Khaleej Sugar’s one and a half decade business experience with Brazil has been productive and positive and we look forward to continued growth in our business with Brazil