European sugar prices will continue to rise due to tight stocks and as producers continue to pass the higher costs on to their customers. The German Südzucker, one of the largest sugar producers in the world, warns against this.
Farmers and sugar processors, like many other producers, are faced with higher energy bills and higher costs for imported raw materials such as fertilizer. At the same time, sugar production is threatened by many beet growers switching to other crops such as grains and oilseeds, which have become more profitable due to the war in Ukraine.
This has contributed to the European sugar price rising to its highest level in four years. According to Südzucker, the higher costs will likely be passed on to food vendors and industrial food manufacturers. That could push food prices, which are nearing record highs, and inflation further.
Due to the “continuing shortage in the sugar markets, we expect a new price increase for the coming contract season,” said a spokesman for Südzucker. The demand for sugar is also expected to increase due to the recovery from the corona pandemic, he said. The European price for white sugar was EUR 446 per tonne in April, according to the latest data from the European Commission. That is about 13 percent more than a year earlier.