Sugar Semi-Annual Report, European Union – 30th September 2020

EU sugar production for MY 2020/21 is forecast at 16 million MT, one million MT below MY 2019/20 and two million MT below MY 2018/19. The poor yields in MY 2020/21 stem from the third vast drought in a row combined with severe damages from beet yellows virus (BYV) disease, especially in France. The MY 2019/20 EU sugar production suffered from late harvesting losses from wet weather in the UK, Germany, and Poland. EU sugar consumption for MY 2019/20 and MY 2020/21 is suffering from the COVID-19 outbreak as increased in-house sugar consumption is not fully compensating lost eating-out sugar consumption. Sugar consumption in the EU food processing industry is reported to be stable. The projected shortfall in MY 2020/21 EU sugar production suggests an EU sugar deficit of 2.25 million MT to be covered by 3 million MT of imports, with EU sugar exports forecast not to exceed 1 million MT. In MY 2019/20, the EU sugar trade balance is expected to end with a deficit of almost 1 million MT.