Sugar is an essential ingredient in many types of food and contributes significantly to the volume flow in the food business. At FKS Food and Agri, we participate in every stage of the sugar production value chain from operating sugarcane plantations to processing sugar into specialty products.
Under our Global Staple Food and Feed business, we sell sugar in various forms to consumers, retailers, wholesalers and food manufacturers as part of our sugar merchandising trade under Enerfo Sugar, established in 2014. Our sugar supplies are sourced worldwide from third parties, as well as our own sugarcane plantation and milling operation located in Brazil.
Our Sugar Plantation and Milling
FKS Food and Agri acquired a majority stake in Tietê Agroindustrial S.A. in 2020, giving us access to a sugarcane plantation and milling facilities in São Paulo, Brazil, producing raw sugar and ethanol. This upstream investment in Tietê, an experienced producer, has given FKS Food and Agri access to economic and cost efficiencies, industry knowledge, operational synergies, best-in-class technological know-how and a high-quality brand name.
With a sugarcane plantation covering an area over 34,000 hectares in optimal weather and soil conditions giving rise to high agricultural yields, Tietê supplies its sugar and ethanol to commodity houses, wholesalers, and fuel distributors. It exports all of the Very High Polarity (VHP) sugar it produces globally and contributes increasingly to FKS Food and Agri’s source of raw sugar supply. Its production of ethanol and large processing capacity also act as a hedge to movements in market prices of sugar to optimise total returns.
Tietê’s operations also comprise two milling facilities, which process sugarcane, primarily sourced from Tietê’s own plantations, into exportable raw sugar, as well as ethanol for local distribution. Both mills enjoy strategic locations between the Ribeirão Preto and São José do Rio Preto regions, recognised as the focal point of Brazil’s sugarcane industry with ready infrastructure and quick access to Santos Port, separated by only 550 kilometres in distance.