Global sugar production in 2011, 2012 to rise over 173m tonnes/year

09 November 2011 17:51  [Source: ICIS news]

BARCELONA (ICIS)--Global sugar production may rise by 8.4m tonnes/year to a total of just over 173m tonnes/year in 2011/2012, driven by population and demand growth, but sugar prices are still likely to remain high, said senior commodity analyst at FO Lichts, Stefan Uhlenbrock, on Wednesday.

Uhlenbrock was speaking at the 14th Annual FO Lichts World Ethanol and Biofuels conference in Barcelona, Spain.

Emerging economies such as India and China are likely to drive sugar demand and production growth.

Good sugar crop prospects in Thailand and Europe are also supporting improved sugar production, he added.

This is in contrast to Brazil, where the latest sugar crops have been lower than expected for the first time in a decade because of adverse weather conditions and lack of investment in new sugar mills.

While sugar prices have come off the peaks of just over 36 cents/lb seen in February 2011, international sugar prices are still likely to remain high because of growing global food demand and the need to incentivise investment.

The latest world sugar price is trading around 26 cents/lb, according to Bloomberg data.

The world sugar price remains relatively high and in contrast to the low level of eight cents/lb seen in June 2007, said Uhlenbrock.

($1 = €0.72)

By: Heidi Finch
+44 20 8652 3214

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