But good news: more rainfall this season and has led to 4. To track crop progress head over to Czapp. Only eight countries in the world produce both sugarcane and sugar beet and China is one of them. Droughts and floods threaten harvests in the region and in a historic drought caused production to drop to 2. Since then, irrigation has been introduced in attempts to control water levels. The manual cane harvesting process that China opts comes with increased labour costs that have reduced production over the past decade.
China is now playing catch-up as it tries to mechanise to a larger degree, a step that could place it in closer stead with producers across the globe.
Despite being the third-largest sugarcane producer , China still has to import to meet its domestic demand it is the most populous country in the world after all. Safeguarding of sugar imports into China has been ongoing since , 9 so, this is not exactly shocking news. Still, we expect that China will meet its import quota of 1. On top of beet production, the EU also refines imported raw sugar, only to a much smaller degree.
Until October , the EU had a production quota of The situation was further compounded by the beet yellow virus that has been plaguing European beet crops since Whilst the use of neonicotinoid insecticides to remove the virus carrying-aphids is currently prohibited in the EU and UK. Despite these conditions, the EU still managed to produce Europe will remain a net importer of white sugar for the foreseeable future, and you can expect to see the UK favouring low-cost imports from countries like Belize, Guyana and Fiji.
For this reason, the nation has been a surplus producer for almost a decade [see Table 1]. Uttar Pradesh, Maharashtra and Karnataka are the key production regions, with approximately operating mills spread across them. As of March , India is headed for the second-highest production on record read all about this on Czapp.
This change was caused by the Indian government controlling export flows and domestic stock, and incentivising exportation through subsidies that guarantee farmers and mills a minimum price for sugar. But this response to the cane surplus is at a cost to domestic consumers who pay more for sugar than foreign importers. Exports become inviable when the world sugar market prices are too low. No wonder competitors like Australia, Brazil and Guatemala, who cannot compete with subsidised exports, are contesting the initiative through the WTO.
The South American giant produced The region stands out for having ideal weather for cane development, appropriate environment for cane culture and a robust transport network. The combination of favourable factors allows for a volume of cane processed close to MMT. In Brazil sugarcane is not just crushed to produce sugar, it is also used for ethanol. Mills will switch between making more sugar or more ethanol depending on the returns offered by each product. Depending on the price dynamic, we have seen CS production swing by approximately 10m tonnes from one season to the next.
A total of over countries produce sugar. The largest sugar-producing countries were as follows:. Brazil regained its historical place as the world's largest sugar producer from India during the — crop year. The country produced This massive increase in sugar production will be achieved by shifting a substantial fraction of Brazil's sugar cane crop from ethanol production to sugar production.
In addition to being the world's largest sugar producer, Brazil is second only to the United States in ethanol production. That reflects the rising demand for sugar cane ethanol and renewable fuels in general.
With no drop in food production over that time, Brazil has proved its viability as an effective and efficient ethanol powerhouse. India fell back to second place in sugar production during —, narrowly losing the top spot to Brazil.
India's economy produced Although it is a political and economic collection of individual countries instead of a single nation, the European Union EU is the third-largest producer of sugar.
Beet sugar is primarily produced in northern Europe, including northern France, Belgium, the Netherlands, Germany, and Poland. Sugar production in the EU is projected to decline again during the — crop year, dropping to China produced Its demand for sugar has grown significantly during the past few decades. Historically, there has been a large gap between domestic prices held high by the Chinese government to support farmers and falling international sugar prices.
The Chinese domestic sugar sector has had difficulty competing internationally. It has higher production costs for sugar than foreign competitors. China allows for 1. Sugar cane is one of Thailand's most important crops. The country produced almost 8. For the — crop year, sugar production for Thailand is forecast to decline slightly to 7. Production is down primarily due to droughts. Sugarbeets can be stored for a short while after harvest, but must be processed before sucrose deterioration occurs.
A recent development has been the introduction of genetically modified GM seed varieties. Sugarbeets are grown in 4 regions encompassing 11 States and tend to be grown in rotation with other crops. The western regions represent dryland farming that depends on irrigation as a primary water source. The eastern regions depend on rainfall. Historically, sugarbeet yields in the western areas have tended to be higher than in the east.
However, with the adoption of new disease-resistant and GM seed varieties, yields in the eastern areas are much closer to those in western areas. In all areas, sugar production is enhanced by technologies that allow the desugaring of molasses, which otherwise would be a relatively low-value byproduct. The largest and most dynamic region for sugarbeet production is in or close to the Red River Valley of western Minnesota and eastern North Dakota.
Area planted in the Red River region increased consistently through the s and into the s and has accounted for the majority of total planted U. Long, cold winters aid the storage of sugar beets harvested in October and allow the slicing of sugarbeets well into the following spring, thereby making more efficient use of slicing capacity at the factories. Michigan, which is typically the third-largest sugarbeet producer in terms of planted area, has a similar production system, although relatively warmer temperatures mean the slicing season is more constrained to the late winter and early spring.
Sugarbeet production in the Far West occurs in Idaho which is typically the second-largest sugarbeet-producing State by planted area , Washington, and portions of Oregon and California. Production in these States is typically on irrigated land. The sugarbeet processing season is also shorter than in the Red River Valley, although investment in ventilated and covered storage techniques has allowed for a longer season and improved the quality of processed sugarbeets.
Contraction of production in this area is primarily due to the closure of three out of the four mills in California over the past few decades, with California production occurring only in the Imperial Valley.
This region typically accounts for about one-eighth of national planted area. As in the Far West, most sugarbeet production in the plains areas occurs on irrigated land.
Investment in covered and ventilated storage facilities has also lengthened the slicing season and improved processed sugarbeet quality and processing efficiency in these areas. Cash receipts for U. On average, the sugar crops account for less than 1 percent of the cash receipts received by U. The two key sugar prices in the United States that have implications for U. The domestic raw sugar price is based on the price of the nearby futures contract settlement price listed by the Intercontinental Exchange ICE often referred to as the Number 16 contract.
There is no futures market for U. The U. For further discussion, see the Policy chapter. The global sugar market is less integrated than other major agricultural commodity markets, however, due to diverse and complex domestic policies of most major sugar-producing and trading countries.
As a result, wholesale and retail sugar prices around the globe are influenced by local agricultural and trade policies and vary greatly from market to market, rather than simply reflecting the world futures price. The world raw sugar price is represented by the nearby futures contract listed by the ICE commonly referred to as the Number 11 contract.
The monthly average world price averaged about The world refined sugar price is also measured by the nearby futures contract settlement prices in the ICE—often referred to as the Number 5 contract. Refined prices are higher than raw sugar prices, reflecting the cost of refining and storing sugar to a higher polarity for human consumption.
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