EU sugar production seen rising 17 percent in 2016/17 as output quotas set to go

Sugar production in the European Union will rise by 17 percent to 17.4 million tonnes in the 2016-17 season, the US Department of Agriculture’s (USDA) Brussels bureau has forecast.

This includes 900,000 tonnes of sugar for industrial use and lower than the 17.6 million tonnes production forecase by the European Union.

Sugar supplies in the EU in the next season are seen higher, according to the bureau, because of the massive carry over of bumper stocks from the 2014-15 sugar year.

The EU sugar market is tightly regulated, with restrictions on production, a system that will be pulled in September 2017, allowing for production to increase.

Sugar stocks at the start of the latest marketing season are at a nine-yer high of 4.07 milion tonnes, almost double the official USDA estimate.

But the bureau revised down its ideas of 2015-16 production, helping to shrink stocks to 1.27m tones by the end of the marketing year, which is still 562,000 tonnes above the official USDA forecast.

 

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