More Commodities - Sugar

Sugar: Dramatic supply squeeze in Europe

December 10, 2018 at 12:23 PM , Der AUDITOR
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LONDON/BERLIN. The German Sugar Industry Association (WVZ) has recently revised its 2018/19 production estimates downwards. Moreover, the outlook for 2019/20 is not exactly encouraging with experts agreeing that the low prices should prompt farmers to switch to more attractive products.


EU sugar production to drop by 9%

The International Sugar Organization estimates that the sugar production in the EU is to decline by 9% to 17.9 million mt over last year’s 19.7 million mt. This year’s drought-like conditions were not exactly helpful and have impacted yields. In addition, the supply glut in the international market caused sugar prices to drop noticeably this year, which has in turn affected the attractiveness of cultivating sugar beets. The WVZ claims that farmers in Germany planted 7% less sugar beets.


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