“Sugar prices in the world are characterized by exceptional variability – annual dynamics of fluctuations often reach 30-40 percent, and in some years they are even higher” – notes Rykaczewski. After reaching the summit in autumn 2023, global sugar records entered the downward trend. “Between November 2023 and July 2025, the FAO index decreased by 36 percent.” – emphasizes the expert, cited by portalspozywczy.pl.
The declines are behind, among others High production forecasts in Brazil and macroeconomic factors. “Lower oil prices limit the profitability of ethanol production, which redirects sugar processing powers. In addition, the weakening of Brazilian Real in 2023/24 was conducive to exports from Brazil, which is responsible for 43 percent of the global market” – explains Rykaczewski.
The situation in Europe, although more stable, is also not free from challenges. “In the 2024/25 season, European plants produced 16.6 million tons of sugar, which means an increase of 7 % year -on -year. Germany, Poland and France had the greatest contribution” – indicates the expert.
Higher production has reduced imports and increase exports by 17 percent. year to year, but prices have fallen. “In May 2025, the average price per ton of sugar was 35 % lower than a year earlier,” notes Rykaczewski.
Sugar production in the EU will fall. Polish producers under pressure
Forecasts for the next season are not optimistic. “The European Commission predicts that sugar production in the EU in the 2025/26 season will drop by 8 percent to a level of 15.2 million tonnes. Limited beet's contract will reduce the raw material base” – assesses the expert.
The most difficult situation applies to Polish producers who experience the effects of a decrease in prices and difficult market conditions. “In the first quarter of 2025, the revenues of the Polish sugar industry were as much as 30 percent lower than a year ago. Net profit and profitability also fell. For the first time since 2019, the sector showed a loss – and this is the highest in the history of measurements since 2007” – emphasizes Rykaczewski.
Source: portalspozywczy.pl
