We think the world will produce 179m tonnes of sugar in 2021/22, up 3% year-on-year.
This is largely because, as it stands, we think Thailand will produce 100m tonnes of cane next season following better rainfall this year and the fact farmers are being offered record returns for their cane.
With this, Thailand’s mill should produce 11.4m tonnes of sugar, up 50% year-on-year.
We think the world will have 3.7m tonnes more sugar than it needs at the end of 2020/21 (174.2m tonnes production, 170.5m tonnes consumption).
This is largely because CS Brazil produced 38m tonnes of sugar this season, marking its biggest one since 2015/16.
Also, sugar consumption around the world has been hit by COVID-induced lockdown restrictions, which seriously reduced out-of-home sugar consumption. Increased consumption at home could not make up for these losses, meaning consumption was lower than expected before the pandemic.
Other Opinions You Might Be Interested In…
Explainers You Might Be Interested In…
- Czapp Explains: Thailand’s Raw Sugar Industry
- Czapp Explains: Thailand’s White Sugar Industry
- Czapp Explains: The EU’s Sugar Industry
- Czapp Explains: CS Brazil’s Sugar Industry
