Czarnikow (CZ), a trader and supply chain services company, forecasts that the global sugar market is on course to record a 5.5 million metric tonnes surplus in the upcoming 2024-25 (October-September) season, driven by increased production in key regions.
The firm anticipates global sugar production to reach 186.5 million tonnes in the next season, slightly lower than its previous estimate. This uptick is attributed to record output in Brazil, the leading producer, and recoveries in the EU and Thailand.
According to the Czarnikow, although production will be slightly lower, it will still be the second highest on record, tailing shortly behind the 2017-18 season.
Despite revising down its estimate by 0.9 million tonnes, Czarnikow expects global sugar consumption to surpass 180 million tonnes in 2024-25, reflecting consistent growth due to global population expansion.
In the 2024-25 season, Czarnikow expects the EU to produce 17.2 million tonnes of sugar which is an increase from the previous season.
The International Sugar Organisation recently raised its deficit forecast for the ongoing 2023-24 season to 2.954 million tonnes.
