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EU Sugar Production Seen Falling 5.4% as French Output Drops

Sugar production in the European Union will fall by 5.4 percent next season, with output in France, the bloc’s biggest grower, sliding 3.2 percent, according to the European Commission, the EU’s executive arm.

The EU will produce 17.6 million metric tons of sugar in the 2012-13 season that starts in October, the commission said in a June 28 report on its website. That is down from 18.6 million tons in 2011-12, according to the report.

Output in France will fall to 4.62 million tons from 4.78 million tons the previous year, the commission forecast. Yields in the 27-nation bloc will drop to 11.1 tons a hectare (2.47 acres) from 11.6 tons a hectare in 2011-12, the report showed. Cane sugar produced in France’s overseas territories is forecast to slip to 280,000 tons from 417,000 tons a year earlier.

Germany’s crop, the EU’s second-largest, is forecast to rise by 1.8 percent to 4.34 million tons from 4.27 million tons a year earlier, the data showed. Production in third-ranking Poland will be 1.64 million tons in 2012-13 from 1.91 million tons a year earlier, the commission forecasts.

The European Union white sugar price averaged 716 euros ($902) a ton in April, the highest since at least July 2006, the commission said in a separate report on its website. White sugar futures on NYSE Liffe are $615 a ton on NYSE Liffe.

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