European Sugar Prices Keep Increasing Due to Tight Supplies and High Input Costs

EU sugar production in the 2021/22 season reached 16.65MMT, which is an increase of 14.5% compared to the previous season and above the five-year average. World sugar prices have been growing steadily since mid-2020, increasing by more than 30% during the 2020/21 marketing year. This pattern continued in the 2021/22 campaign due to tight inventories, rising consumption, and high energy prices. EU prices have followed the upward trend, albeit at a slower pace, reaching the highest level in the post-quota era of EUR 452/MT in May 2022.