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Sugar Supply Seen ‘Under Pressure’ by 2020: Suedzucker

Global sugar supply will be “under pressure” amid significant demand growth by 2020, which may push prices up further, according to Mannheim, Germany-based refiner Suedzucker AG.

World sugar demand is expected to grow 24 percent to 198 million metric tons by 2019-20 from 2008-09 because of population and wealth growth, Thomas Kirchberg, a Suedzucker management board member, said, citing the United Nation’s Food and Agriculture Organization’s data.

The big question is who will be able to deal with these additional demands, Kirchberg asked at a conference in Moscow today. Brazil, the world’s largest producer, shipped about 26 million tons in 2010-11 and is close to its output potential, he said. Thailand, the number two exporter, may face weather risks and Africa needs infrastructure, agriculture and logistical investment, he said.

Growing sugar demand and the supply-side uncertainty could push prices higher by 2020, Kirchberg said after the conference without elaborating on figures.

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