Sugar production in Europe could fall to its lowest level since 2015

In the current season, sugar production in the EU and the UK may decrease to the lowest level since 2015 - 15 million tons, which will increase the EU's need to import this product.

 

Last week, experts from the MARS crop monitoring agency lowered the forecast for the average sugar beet yield in the EU to 76 t/ha, which would be 7% lower than last year's figure, but in line with the 5-year average.

 

This decrease in yield is due to prolonged heat, which negatively affects crops and increases the risks of further reductions in sugar beet production.

 

As a result of reducing its own production, the European Union may increase sugar imports, which will become an additional factor supporting world prices.

 

At the same time, global sugar production also remains under threat, as the El Niño phenomenon may reduce sugarcane harvests in Asian sugar-producing countries, in particular India and Thailand, which, against the background of a decrease in the harvest in the EU, increases concerns about the emergence of a sugar deficit on the world market.