Experts Predict Sugar Production Surplus in 2022

Experts predict an overabundance of sugar in the market in the 2022/23 season. This became known from the CovrigAnalytics report. Analysts believe that high prices and good weather in the countries that are the main exporters of the product contribute to the oversupply.

In the 2021/22 season, the market also recorded an excess of sugar. The excess amounted to 0.6 million tons. In the agricultural season 2022/23, analysts predict that supply will exceed demand by 0.9 million tons. However, this surplus is small compared to pre-COVID-19 times. For example, in the 2017/18 season, overproduction amounted to 12 million tons.

The COVID-19 pandemic has affected sugar consumption. According to experts, consumption in the 2022/23 season will be 5.15 million tons less than in the 2018/19 period. Analysts predict that sugar prices could fall if the coronavirus pandemic continues and Brazil has a good sugar beet harvest.