The European beet sugar market is poised for positive development in the 2024/25 marketing year, with production expected to reach 16.6 million tonnes. This represents a 6% increase from the 15.6 million tonnes harvested in the previous year. Expanded planted areas, particularly in Germany and France, as well as favorable weather conditions, are major contributors to this growth. Germany is projected to produce 4.58 million tonnes of sugar, while France is expected to achieve 4.49 million tonnes.

Stock Levels and Trade

EU sugar stocks are forecasted to rise to 1.9 million tonnes by the end of the 2023/24 marketing year, up from 1.7 million tonnes the previous year. This increase is largely driven by higher production and duty-free imports from Ukraine, which are affecting the European market. At the same time, EU sugar exports are projected to grow to 4.3 million tonnes in 2024/25, while imports will slightly decrease to 2.1 million tonnes.

Price Development and Margins

Despite increased production, the margin between the cost of sugar beet and sugar prices remains high. In recent years, this margin has been over £500 per tonne, indicating strong profitability for processors. However, it is anticipated that sugar prices for the 2024/25 season will be lower than the record highs of 2023/24 but will still remain above historical averages.

Conclusion and Outlook

The European sugar market in 2024/25 will be characterized by higher production and growing stock levels. Despite pricing pressure from imports and expectations of lower sugar prices, margins for processors remain strong. The market will continue to be influenced by external factors such as global market developments, weather conditions, and the impact of duty-free imports.





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