European Sugar Production expected to rise by 3% in 2023/2024 to reach 15.5M tons.

EUROPE—European sugar production is expected to reach 15.5 million tons from almost 1.4 million hectares of sugarbeets, reflecting a 3% increase in production over 2022/2023 according to a report from the US Department of Agriculture’s Foreign Agricultural Service.

In addition, the report highlights a 6% decrease in beet acreage in France. This reduction is attributed to the European Court of Justice (ECJ) finding that Member States cannot obtain temporary emergency authorizations for the use of banned neonicotinoids on sugarbeets.

Consequently, many French farmers have shifted to other crops.

Neonicotinoids, insecticides used to control aphids that spread the beet yellow virus (BYV), were subject to a ban.

In 2022, 14 Member States were reportedly granted a conditional exemption from this ban.

Despite the unavailability of these crop protection agents, sugarbeet farming in Poland remains profitable compared to other crops such as wheat and maize.

Exports have seen a remarkable increase, surging from 44,000 tons in 2022/23 to 905,000 tons in 2023/24.

This increase reflects the EU’s limited domestic supply, which has been damaged by the summer drought and high EU prices, with important export destinations being the UK, Israel, Albania, Turkey, and Switzerland.

Stocks are anticipated to be 1.4 million tons, marking a 10% increase from the previous year.

Globally, output is predicted to rise by 8.2 million tons year on year to 183.5 million.

Increased production from Brazil and India is expected to offset declines from Thailand and Pakistan.

Consumption is also projected to reach new highs, driven by expansions in regions such as India and Pakistan.

Moreover, exports are likely to rise as increased shipments from Brazil and Thailand more than balance weaker exports from India and Pakistan.

Stocks are expected to decrease to meet domestic demand and rising exports from markets such as Brazil and Thailand.

Global production is forecasted to decrease by 4.4 million tons to 175.3 million. Russia’s production is expected to drop by 8% to 6.6 million tons due to lower yields following revisions from the May 2023 forecast.

Mexico, on the other hand, will face a decline of 3% to reach 5.5 million tons due to unfavourable weather and drought, while the European Union will decrease by 1% to 14.7 million tons due to lower sugarbeet yields caused by drought.

Despite stable global imports at 57.4 million tons, Sudan’s exports are expected to increase by 293,000 tons to 1.6 million tons due to heightened imports from India and Thailand following adjustments to the May 2023 forecast.

Conversely, Mexico’s imports will jump from 254,000 tons to 302,000 tons, and China will reduce imports by 600,000 tons to 3.8 million due to high international prices, making it more lucrative to supply demand by reducing stocks.

Global exports are expected to drop by 1.8 million tons to 64.3 million, with India’s revised exports increasing by 933,000 tons to 7.4 million due to surpassing the export cap as a result of revisions to the May 2023 forecast for selected MY 2022/23.

Algeria will therefore cut 279,000 tons due to weaker shipments to the European Union and Jordan, while Thailand will cut 1.5 million tons to 9.5 million due to buyer caution stemming from high global prices.

Globally, the ending stocks will increase by 2.4% to 3.9 million tons, with Thailand’s stocks increasing by 1.5 million tons to 7.7 million due to decreased exports resulting from revisions to the May 2023 Forecast for Selected MY 2022/23.

China is expected to reduce imports by 621,000 tons to 2.1 million tons, and India has reduced imports by 18% to 5.3 million tons due to increasing exports.

Newer Post

NAB restricts importation of 13 crops starting December

Older Post

Morocco becomes Saudi Arabia’s top blueberry supplier