Sugar: devastating outlook in EU
September 9, 2026 at 4:07 PM ,
Der AUDITOR
20% lower yields in France
As Reuter reports as based on a statement issued by the French sugar giant Tereos the company is expecting a significant reduction in this year’s sugar beet crop due to extreme heat and drought. Anticipation is that yields will range 20% lower than last year and 15% below the five-year average. Given France’s significance for the EU sugar market, this shortfall is expected to contribute to EU sugar production falling to a 38-year low.
In response to the smaller crop, Tereos intends to limit the sugar campaign to an average of 100 days at the eight factories in France. Last year's campaign lastet for around 130 days. Furthermore, the start of the sugar campaign is to be delayed in the hope that this will help to increase yields. Following two years of steadily falling sugar prices, the market is now recovering.
Nordzucker complains about intended sugar tax
German sugar giant, Nordzucker, kicked off the 2026/2027 campaign at the start of September with the two sugar factories in Poland leading the way, followed by those in Lithuania, Germany and Sweden, Denmark and Finland. As in previous years, organic beets will be processed first in the Schladen site in Germany and the Nykøbing site in Denmark as outlined in the group's press release. According to CEO Lars Gorissen "due to the weather this year, the beet has not yet developed optimally so far in many of Nordzucker's growing regions". Extreme weather conditions and increasing disease pressure will impact yields.
On top of this, the market phase is rather challenging with high sugar stocks in the EU and on the world market, as well as low sugar prices. Added to this is the tax on sugar-sweetened soft drinks currently being planned in Germany, which would bring with it a great deal of uncertainty and have significant economic consequences for the sugar industry, the agricultural sector and numerous jobs in rural areas.
Early EU estimate issued
According to the Balance Sheet issued by the European Commission's Committee for the Common Organisation of Agricultural Markets EU sugar production will only reach 13.4 million mt in 2026/2027. This is clearly down on the 16,6 million mt produced in 202572026. The final cultivated area has thereby declined from 1.3 million ha to 1,2 million ha and yields are expected to fall from 12.3 mt/ha to 10.9 mt/ha.
|
EU sugar production 2026/2027 |
|||
|
Country |
ha |
mt/ha |
mt |
|
France |
323,000 |
12.0 |
3,992,840 |
|
Germany |
305,000 |
11.5 |
3,504,647 |
|
Poland |
238,000 |
9.4 |
2,222,138 |
|
Netherlands |
76,000 |
13.8 |
1,050,056 |
|
Belgium |
42,000 |
12.7 |
535,402 |
|
Czech Republic |
56,000 |
9.2 |
514,600 |
|
Denmark |
28,000 |
12.3 |
348,110 |
|
Austria |
23,000 |
10.4 |
236,156 |
|
Spain |
21,000 |
10.6 |
222,056 |
|
Romania |
15,000 |
6.9 |
101,989 |
|
Others |
97,000 |
- |
689,726 |
|
Total |
1,224,000 |
10.9 |
13,417,720 |
|
DG Agri, 27/08/2026 |
|||
View more
- price chart granulated sugar, Germany
- price chart raw sugar, CBOT
- price charts on grains, oilseeds, nuts, dried fruit and many more products
View related articles
