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EU Sugar Crop to Set Record in 2011-12 on Germany, France, U.K.

Dec. 13 (Bloomberg) -- Sugar production in the European Union will climb to a record in the 2011-12 season on bigger harvests in France, Germany and the U.K., according to French crop office FranceAgriMer.

EU sugar output will climb 15 percent to 18.25 million metric tons in the 12 months ending in September, FranceAgriMer estimated in a report e-mailed today. The bigger crop may result in greater stockpiles, the office said.

The EU sugar regulations allow producers to sell a fixed quantity for food use in the bloc’s internal market, while the remainder must be exported, used by industry or stored until the next season. The European Commission, the EU’s regulatory arm, on Nov. 24 authorized local producers to sell an additional 400,000 tons of the sweetener within the bloc to ease shortages.

White, or refined, sugar futures have dropped 19 percent in London in the past year as traders speculated that supply would expand. Output will exceed demand by about 9.7 million tons in the October to September period, researcher Kingsman SA forecasts.

German sugar production will climb 1.2 million tons, France’s will rise 700,000 tons and the U.K. will produce 350,000 tons more than in 2010-11, according to FranceAgriMer. Sugar output will rise in most countries in the bloc, with the exception of Italy and Austria, where crops will drop by 200,000 tons and 35,000 tons respectively this season, it said.

Europe will likely import 3.1 million tons of sugar this season and export 2.05 million tons, the crops agency said in the report.

To contact the reporters on this story: Isis Almeida in London at; Rudy Ruitenberg at

To contact the editor responsible for this story: Claudia Carpenter at

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