Sugar production in the European Union and the UK is expected to fall to around 15 million tonnes, its lowest level in more than a decade, as intense summer heat damages beet crops and adds pressure to already tight global supplies.
A series of heatwaves has affected crop yields after the area planted with sugar beet declined for a second consecutive year. Producers had reduced cultivation following bumper harvests that pushed down prices, according to Bloomberg, citing data from S&P Global Energy.
The decline is adding to concerns over a potential global sugar deficit, with the El Niño weather pattern also threatening sugarcane production in major Asian producers, including India and Thailand. The combination of weaker European output and risks to Asian production could further tighten worldwide supplies.
