Earlier in May, FranceAgriMer reduced its estimate of 2014/15 beet sugar output marginally to 5,112,700 tonnes, white value, from an estimate of 5,147,000 tonnes issued in late January. This compares with 4,530,600 tonnes produced in 2013/14. As usual, these numbers include the sugar equivalent of beets processed for ethanol production
Especially in the Sugar segment, steadily declining market prices led to a significant drop in earnings. The Starch and Fruit segments have proved a stabilising influence for profitability, with the Starch segment contributing a slight year-on-year increase in EBIT, while a moderate EBIT decline in the Fruit segment was the result of one-time factors.
The US Department of Agriculture (USDA) said in its first outlook on the 2015/16 domestic sugar balance that sugar production during that season will fall to 8.450 mln short tons, raw value, on an Oct/Sep basis, a decrease of 76,000 from 2014/15.
Beet sugar production is projected to rise 5.2% on the year to 5.123 mln tons from 4.870 mln as planted acreage is projected to increase by about 44,000 acres in 2015/16 due to higher returns relative to costs while as well as a return to sugar yield trend. On the other hand, cane sugar production is projected to decrease to 3.358 mln tons