Analyst warn of a collapse in Mexico's sugar production

Sugar

Mexico

Market & Price Trends

Published Jan 20, 2024

Tridge summary

Mexico's sugar production is expected to fall by 15% in the upcoming cycle to 4.7 million metric tons, the lowest volume in a decade due to poor development of the sugar cane harvest from insufficient rainfall and low industrial yields. As a result, Mexico will likely need to import sugar, with the analyst suggesting they will need to rely on Central American producers, as their previous main supplier, India, may not be in the market due to limited local production. Central American countries normally export about 3.3 million tons of sugar, and most of it will likely go to Mexico this year to meet their needs.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Mexico's sugar production in the 2023/24 cycle will fall 15% from the previous harvest to 4.7 million metric tons, the lowest volume in the last 10 years, said analyst and supply chain services provider Czarnikow. The Latin American country's sugar cane harvest had a poor development this season due to insufficient rainfall, which resulted in low volumes of cane per hectare, as well as poor industrial yields during processing, said analyst Stephanie Rodríguez, in a report by Czarnikow. "With lower sugar production, Mexico will have to import sugar, just as we saw last season," he said, adding that the country will likely buy sugar from Central American producers such as Guatemala, Honduras and El Salvador in order to meet its export quota. To united states. In the last cycle (October to September), more than 50% of Mexican imports of the sweetener came from India, a supplier that probably will not be in the market this year, since ...

Source: Expansion