Food and Agriculture Organization of the United Nations: World sugar production expected to increase after three years of decline

The Food and Agriculture Organization of the United Nations (FAO) forecast for global sugar production from October 2021 to September 2022 is set at 174.6 million tonnes, up 5.1 million tonnes (3%) from the reduced level of 2020-21. The expected rebound, after three years of declines, reflects expectations for increased production in India, Thailand and the EU, and will likely more than offset steep declines in Brazil and China.

Global sugar consumption is expected to recover for a second consecutive season in 2021-22, but growth is expected to be slower than expected. India, the world’s largest sugar consumer, and African countries are expected to drive the projected global rise in sugar consumption….

World sugar trade in 2021-22 is expected to reach 59 million tonnes, down slightly from the volume estimated for 2020-21. Despite forecasts of record exports from India and a recovery in shipments from Thailand, lower exports from Brazil are expected to dampen global sugar trade.

World sugar prices have fallen since October 2021, while remaining at high levels. The price declines were mainly triggered by favorable production prospects in major exporting countries, notably India and Thailand. Concerns about the impact of the Covid-19 pandemic on global sugar demand, following the resumption of containment measures in many countries, also weighed on prices at the end of 2021.

Taken from Food Outlook: Biannual Report on Global Food Markets, Food and Agriculture Organization of the United Nations

Rachel J. Bradford