Azucar

ultigrain has started its sugar operations by the end of 2003, initially focusing the growing market niche represented by the exports of sugar in containers. The quick deterioration of the international "breakbulk" vessels fleet, without the proper replacement, in view of its economical unfeasibility, has led to a significant increase of interest from the small and medium importers of sugar under this modality. The estrategy has proven to be right, since the volume of Brazilian sugar in containers kept an exponential growth since then, and the 1.6 million tons exported in 2007 represent an increment of 525 over the quantity exported in 2003.

The exports are mainly destined to small food industries, soda industries, packers, supermarket chains and distributors, and the Brazilian sugar reach extends from the Arab Emirates to Colombia, from Mauritania to Madagascar, from Angola to Afghanistan.

Multigrain exports refined and crystal sugar, in 2007 our exported volume was 65% higher than the previous year, with sales to 37 different destinations all over the world. Our challenge is to pursue an equally expressive growth in 2008, adding another 25% to the negotiated volumes.

The sugar activity includes the purchase of sugar from Brazilian producers, with whom Multigrain and its management team have a long lasting and solid relationship, and the sales to the international market, in a procedure that is very similar to the commercial cycle existing in the soy business, although including the international sea freight and insurance hiring, which adds an extra degree of complexity to the process.

The future ahead reserves multiple and new opportunities to Multigrain, allowing her to keep this growth spiral, either participating on sugar cane farms, sugar mills and ethanol plants or stuffing terminals and logistics optimization projects, as well as on co-related markets, such as energy co-generation and carbon credits, opportunities created by the production of clean energy by the Brazilian sugar mills.