VLI expects to transport sugar volume similar to last season

VLI expects to transport a volume of sugar this year similar to last year’s. The company’s executive commercial director, Carolina Hernandez, sees a stabilized market and says that the industry continues to demand logistics services, even amid the current decline in international sugar prices.

Sugar prices on the New York Stock Exchange are at 16 cents per pound. In one month, the July 2025 contract fell more than 8%; the October delivery contracts dropped nearly 6.5%.

“Even in a scenario of lower profitability due to market prices, it’s still worthwhile for our clients to secure logistics capacity. This is a year in which we can replicate last year. We’re confident in the sugar market and have high expectations for rail transport,” she said.

In the 2024/25 season, VLI transported a record volume of sugar: 6.2 million tonnes. The performance was attributed to operational efficiency and “integrated solutions” in a year marked by lower production in Brazil’s Center-South region. According to the Brazilian Sugarcane and Bioenergy Industry Association (Unica), mills in the area produced 40.16 million tonnes, 5.3% less than the previous crop.

For 2025/26, consultancy firm Datagro forecasts sugar production in Brazil to reach 42.04 million tonnes. With that volume, analysts estimate the global supply of the commodity could exceed consumption by 1.53 million tonnes. The 2024/25 cycle ended with a global deficit of 4.67 million tonnes, according to the company.

“Even if there’s a drop in the crop, we believe sugar exports will be preserved. Brazil is very relevant. We see the market as stable,” said Carolina Hernandez of VLI.

Source: Globo Rural

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