EU sugar outlook dims due to dry weather hitting beet crops
Analysts and growers say that the outlook for sugar production in Europe has been weakened by a severe drought which hit beet crop crops in France and Germany, three of the largest producers. Farmers also cut back on plantings due to a slumping price.
A lower output of sugar should allow European sugar prices to recover. This will ease the pressure on sugar producers and farmers who were also under stress from high import costs and competition.
Three successive heatwaves this year have intensified the drought across Europe. They have strained water resources and dried out vegetation on?the fastest-warming continent in the world.
Timothe Masson is a sugar analyst at the growers group CGB. He said that weeks of dry weather in France have decreased the potential yield.
He said that the crop was losing about three weeks in growth, and it would be less likely to achieve its five-year average after last year's exceptional yields.
Beet 'weevils' also added pressure while symptoms of virus yellows increased. Beet weevils can bore into the roots of plants, increasing the risk of disease or rot.
Meteo France's weather forecasts show little to no rain for the next two weeks in the major French producing areas.
Last month, the European Commission estimated that EU sugar production in 2026/27 would be 14.1 million metric tonnes, down by nearly 15% from previous seasons. Ending stocks were expected to fall 22% to 2,05 million tons, their 'lowest level since 2021/22.
Analysts in?Germany said that heat and drought have damaged beets - especially in the southern part of the country. After a 12.6% reduction in planted area, they expected beet production to drop about 15% compared to last season's 28.6 million tonnes.
Analysts said that while sunshine could increase sugar production, it would not compensate for a decrease in beet tonnes.
Rafal Strachota, the director of the growers' association KZPBC in Poland, estimated that Polish beet yields would be 2.5 to 3 million tonnes below those of last year, which were 18.6 millions tons. However, rainfall in July or August may improve yields.
(source: Reuters)
