EU sugar production is forecast to fall by 7%
European Union sugar production is forecast to fall by 6.9% in the 2022/23 season to 15.5 million tonnes following a drop in planted area and a severe summer drought in many parts of the trading bloc, the European Commission said in a short-term outlook issued on Wednesday.
It is reported by Nasdaq.
The drought led to a drop in sugar beet yields of 4% while the planted area also decreased by 4%, the report said.
Consumption of sugar rose in 2021/22 by 5.6% to 16.8 million tonnes, partly driven by an inflow of Ukrainian refugees, but is seen falling back slightly in 2022/23 to 16.6 million, a decline of 1.5%, due to increasing prices for the sweetener.
The report noted EU sugar prices had risen to 484 euros ($479.60) a tonne in August, a record high in the post-quota era which started in October 2017.