Source: Ukragroconsult (Ukraine)
In January, the European Commission reported a continued decline in EU sugar prices, which hit €557 per tonne on ex-works terms (£436 per tonne). This decrease is attributed to the low prices secured for sugar for the 2024/25 season during the previous summer, according to nfuonline.
Conversely, recent trends in spot sugar prices indicate an uptick, with current values now surpassing this benchmark.
The reduced prices for sugar in the marketing year 2024/25 have placed a burden on sugar beet processing companies within the EU, leading to reported losses for Sudzucker and Agrana in the fourth quarter of 2024. In light of these challenges, Agrana has announced the closure of two facilities located in Austria and the Czech Republic.
These financial setbacks are anticipated to result in diminished beet prices across Europe in the marketing year 2025/26, along with a likely decrease in beet cultivation acreage.
GlobalData forecasts a beet area contraction of approximately 7-8%, while some analysts estimate a reduction nearer to 5%. Regardless, this trend is expected to cause a significant deficit in the EU-UK market balance, thus bolstering sugar prices for the marketing year 2024/25.
Favorable weather conditions this year will enable farmers to plant beet in a timely manner, unlike the previous year.