But the greatest long-term threat to sugar producers may be growing indications of declining demand growth. • Current Report • Past Reports (USDA Economics, Statistics and Market Information System) The BBD (Barbados dollar) is the national currency of Barbados. As of 2018, sugar cane production in Brazil was 746 million tonnes that accounts for 39.20% of the world's sugar cane production. But the sugar and health debate is starting to take its toll with the 2019-20 growth rate close to 1.39%, he said. “The world is still suffering from high accumulated stocks that will need to be absorbed by the market before we can see any improvement on price,” Mr. Orive explained. Imports beyond that amount are subject to higher tariffs of 50% and require additional permits. “Exports are lagging and stocks will undoubtedly finish the year high, continuing to pressure the government and mills.”. The tariffs expire in May 2020, and Chinese sugar mills will ask for an extension to preserve these tariffs in the hope for the continued protection of the domestic sector. That is 19% of the world's total sugar production of 179 million metric tons. o Thailand is slashed 5.2 million tons to 8.3 million on lower yields due to drought. A tariff war is an economic battle between countries where they levy additional tax on each others exports. India produced 33 million metric tons of sugar. (Reuters) - The world sugar market is on course for a shortfall of 1.36 million tonnes (raw value), analyst Green Pool said on Friday in its first forecast for the 2019/20 season. Sugarcane is Thailand's most important crop and in 2018/2019, Thailand produced almost 15 million metric tons of sugar. Its value is pegged to the U.S. dollar (USD) at a rate of 2 BBD per USD. The largest sugar-producing countries are as follows: India became the world's largest sugar producer in 2018/2019, beating out Brazil for the first time in 16 years. “(The) size of the 17/18 crop year surplus...was so big that it was bound to force change quickly,” Green Pool said. Selected MY 2019/20 Revisions from November 2019 Forecast: - Global production is down 7.9 million tons to 166.2 million. This statistic shows the sugar production worldwide in 2019/2020, by leading country (in million metric tons). It also trimmed its projection for the global surplus in 2018/19 to 2.64 million tonnes from a previous forecast of 3.60 million. There was a surplus of 19.60 million tonnes in 2017/18, it said. PRODUCTION3 World sugar production to expand significantly in 2017/18 World sugar production is estimated by FAO to reach A total of 124 countries produce sugar. The country’s 2018/19 production was seen at 33.5 million tonnes, down slightly from a previous forecast of 34.1 million tonnes. Brazil, the world’s biggest exporter, has seen production fall rapidly since 2017-18 with the majority of cane now being used to produce ethanol. Our Standards: The Thomson Reuters Trust Principles. Recent years have shown a trend toward a slow but steady erosion in consumption, he said. Mills, meanwhile, must sell sugar at market prices, resulting in massive stocks that are overhanging both the Indian and the global market. “It’s crucial the sector communicates better and is able to convey proactive messages based on facts and sound scientific evidence.”, We use cookies to provide you with a better experience. The expected shortfall in 2019/20 is mostly due to expected output reductions in Thailand, Pakistan and India, it said. In absolute terms, and when compared to the base period, major changes in global production are projected in India (+5.7 Mt), Thailand (+3.0 Mt), China (+2.9Mt) and Brazil (+2.5 Mt). In 2019, world sugar production amounted to approximately 180 million metric tons. “U.S. Furthermore, the Thai sugar industry is expected to face further woes due to the oversupply of sugar from India and China's production. Mr. Orive preliminarily forecast a global sugar deficit of about 3.5 million tonnes in 2019-20, growing to nearly 6 million tonnes in 2020-21, compared with global surpluses of 2.1 million tonnes in 2018-19 and 9.7 million tonnes in 2017-18. In the 2018/2019 crop year, sugar production was 179 million metric tons, with 181 million metric tons expected for 2019/2020. Europe, another major producer and exporter, also has devoted fewer acres to beet production this year, although the industry there is struggling after production soared when government controls were lifted in late 2017. Reporting by Ana Ionova; editing by Jason Neely. Design, CMS, Hosting & Web Development :: Subscribe to Food Business News' free newsletters to stay up to date about the latest food and beverage news. That’s good news for global farmers who have been struggling as raw sugar futures dipped to near 10c a lb in September 2018 — well below the average cost of production. Smaller portions point to consumer interest in health and wellness. China produced 10.6 million metric tons of sugar in 2018/2019. See here for a complete list of exchanges and delays. Sugar production in the EU grew significantly in the 2017/2018 crop year. Output from Brazil’s centre-south cane region is expected to rise to 29.6 million tonnes in 2019/20 from an expected 26.6 million tonnes in 2018/19. SUGAR OECD-FAO AGRICULTURAL OUTLOOK 2019-2028 © OECD/FAO 2019 ago). “World sugar prices have hit bottom, and signs are pointing to a recovery,” Mr. Orive said Aug. 5 on a panel at the 36th annual International Sweetener Symposium, sponsored by the American Sugar Alliance (A.S.A.). However, Brazilian auto fleets are fully equipped to run on ethanol so there is considerable domestic demand for the alternative fuel, which has resulted in a slight change towards producing more cane ethanol. The nation is seeing record levels of sugar production due to increased sugar farmland and improved yields. This is because of droughts in 2018 that caused farmers to reduce sugarcane planting and because of floods in 2019 damaging crops. Not only is it the fourth-largest sugar producer in the world, but it is also the second-largest sugar exporter in the world, after Brazil. Approximately 80% of the world’s sugar is produced from sugarcane in tropical and subtropical climates with the remaining 20% derived from sugar beet, which is grown mostly in the temperate zones of the Northern Hemisphere. A soft commodity is a grown agricultural commodity such as coffee, cocoa, sugar, and fruit. Green Pool pegged India’s 2019/20 production at 29.50 million tonnes. Since the mid-1990s, the volume of sugarcane harvested and processed in Brazil has almost tripled to meet the rising demand for sugarcane ethanol and bioelectricity. With no drop in food production over that time, Brazil has proven its viability as an effective and efficient ethanol powerhouse. But he is optimistic because production from major sugar suppliers appears to be declining, which will let stocks fall. India produced 33 million metric tons of sugar. Cane prices, combined with export quotas and subsidies, all are being challenged in the World Trade Organization for violating international rules. This could help to bring about a more balanced market from the start of next season. There, farmers are guaranteed prices for their cane crops, largely due to political reasons, and these price guarantees have continued to climb despite downward market signals and increasing cane production. Production by the second biggest exporter, Thailand, is also down as farmers switched to alternative crops. and moderator of a panel at the symposium. ASHEVILLE, N.C. — World sugar supplies are expected to tighten as production declines in 2019-20, but large stocks and indications of declining demand growth … “The war against sugar will continue,” Mr. Orive said. “Weather could provoke production variations, while consumption growth is declining as the war against sugar continues,” he said. “We’re getting killed with consumption,” Mr. Orive said, noting the “war” on sugar, including sugar taxes in many countries. “Government policies will continue, mainly for political reasons.”. It is actually the world's largest producer of beet sugar, which makes up 20% of the world's total sugar production.