The French sugar industry is threatened by drought with no sign of rain.
Growers say a prolonged drought threatens sugar production?in France, Europe's largest sugar producer. No rain is forecast for the next two week in the?key regions of beets, they said. Concerns over European crops are fueling a rise in sugar prices.
The El Nino weather pattern, which is affecting Asia, has also helped white sugar to gain nearly 10% over the last?week. Sugar prices had fallen to a five-year low in early this year due to an abundance of supplies. This hurt sugar producers' profits.
Europe has been experiencing a heatwave that is unprecedented in its severity. It has disrupted the daily lives of many people for over a week and caused hundreds to die.
Sugar beets need water to grow. Franck Sander is the president of the French beet farmers' association CGB. He said that if it doesn't rain in two weeks, it will be disastrous.
Meteo France predicts that the sugar beet plains in Paris and northern France will remain dry until July 14.
EU SUGAR MANUFACTURER SEEKS A 15% DROP
Sander stated that the situation is not uniform in France, with some beets showing dried leaves while others are doing better.
In its most recent forecast, released on June 26th, the European Commission estimated EU sugar production in 2026/27 to be 14.13 million tons - down 15% from 2025/26. The decline was due to both a 9% drop in planted area as well as a 6.5% fall in yields.
France was the country with the largest drop in yields, but the Commission also predicted a decline in Germany and Poland.
"The drought in France is still very serious." Michael McDougall, an independent consultant and sugar broker, said that poor rainfall patterns would continue to impact far western Europe over the next 10 days and perhaps two weeks.
Sander says that French farmers are also concerned about yellows disease spreading after heavy aphid invasions earlier in the season.
In 2020, the virus devastated crops after the European Union banned certain?neonicotinoid insecticides that were used to 'protect' crops. The EU cited evidence that they harm bees.
France granted temporary exemptions to 2021 and 2022, after farmers and producers of sugar said that the ban threatened their industry's viability. After a ruling from the EU's highest court, France's Conseil de Stat ruled that exemptions were invalid.
The House of Commons is set to debate a new exemption as part of a larger farm bill this week. The minister for agriculture said that she did not oppose the measure but preferred it be discussed separately in order to reduce the chance of the bill being rejected.
The final decision will be made later in the month. It would be too late for this year's crops, since aphids infect plants during spring, and symptoms appear in summer. (Reporting and editing by Mark Potter, Nick Zieminski, Nigel Hunt Additional reporting)
(source: Reuters)
