It is reported by press-service of S&P Global Platts.

British Sugar owner AB Sugar said Thursday higher beet yields would offset a drop in planted area in the UK and take 2019-20 (October-September) sugar production 3,000 mt higher on the year to 1.18 million mt.

However, in the UK, AB Sugar said the campaign was progressing well, even though it did acknowledge there had been "high levels of rain which have at times limited harvesting."

The company, a unit of Associated British Foods, reported that in Spain, its beet sugar production "is expected to be lower than last year at 210,000 mt" due to a lower area planted to beet, but that this would be compensated for by an increase in the amount of raw-sugar refining.

Looking beyond Europe, AB Sugar said sugar production at Illovo, its African operations, is "expected to be some 1.7 million mt, broadly in line with last year, with production in a number of countries being limited by heavy rains at the end of the season."

The company reported its African sales were ahead year on year, but growing imports and falling consumption were reducing its effectiveness in the South African domestic market.

In China, the company forecast its sugar production would be 19,000 mt lower on the year at 130,000 mt, but a better-quality beet crop, and a payment system, "linking of some grower payments to the sugar content of their beet," is expected to deliver a higher operating result.