Tridge summary
The sugar market is expected to keep experiencing high prices and volatcyity in consumption for the 2022/23 campaign, largely due to the ongoing geopolitical tensions, particularly the invasion of Ukraine by Russia. The situation has led to a surge in energy prices and market uncertainty, causing a shift in sugar usage towards ethanol production in countries like Brazil and India. The European beet growers have highlighted the impact of the war on production costs, including a significant increase in fertilizer prices. They have called for higher producer prices to ensure the sustainability of sugar production, which is already challenged by factors like decreasing planted areas, climate change, and the European Green Deal objectives. The European Commission has noted that the war in Ukraine does not directly affect sugar availability in the EU, but there are concerns about potential disruptions in the import of molasses and beet pulp from Russia and Ukraine.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Sugar prices on the world market will remain at high levels in the next 2022/23 campaign, according to the forecasts presented by experts at the last meeting of the EU Sugar Market Observatory, held last May. . Both prices and consumption have been very volatile since Russia's invasion of Ukraine. Prices have risen since the beginning of the conflict and have remained at high levels due to the rise in energy prices and market uncertainty. As a consequence of the energy price, it is expected that more sugar will be used for ethanol production not only in Brazil but also in India. During the meeting, the representatives of the European beet growers (CIBE, International Confederation of Beet Producers) made an estimate of the impact of the war on the costs of the producers. Based on fertilizer prices in February/March 2022, they pointed out that costs have increased between 15% and 27%, depending on the countries. The viability of production requires an increase in producer prices ...
Source: Agropopular
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