The sweetener industry in the United States is heavily regulated. Recent changes the rules relating to Mexican sugar arrivals into the United States led to potential opportunities for regional sugar producers looking to place sugar into North America.
A leading Central American sugar producer, asked us to provide an overview of the sweetener markets of Mexico, USA and Canada to identify investment opportunities in these geographies.
CZ Approach
- In-house and external data sources used, including from our Miami and Mexico City offices.
- Site assessments completed to analyse commercial and technical feasibility of investment.
- External resources including conversations with ports regarding warehouse leasing.
CZ Solution:
Delivered a market report to the client, enabling them to understand the USMCA market and the politics surrounding it. Ultimately identified an opportunity to construct a greenfield sugar refinery in the port of Stockton on the USA West Coast. Including an investment assessment of Stockton port and a financial model testing several scenarios to determine profitability.
Outlook
Sugar imports are essential for the US to meet its needs. Oppurtunities still exist within the market to invest to increase supply.
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