Total world sugar production is forecast
to decrease 6 percent in 2000/01, to 124.4 million metric
tons, raw value. Production is forecast to drop for the
first time in six years, ending the longest number of
consecutive years of positive growth since the late
1960's. The decrease in world production is due in large
part to a steep decline in forecast production for
Brazil. Brazil is forecast to decrease the area harvested
from 4.47 million hectares to 4.35 million hectares, a
decrease of 7 percent. Moreover, while the forecast total
production of sugarcane is expected to fall, the
percentage of cane utilized for ethanol production is
expected to rise from 53 percent to 61 percent. The net
outcome is forecast to be drastically lower exports.
Additionally, lower production and exports from the
European Union and lower Australian production will help
to counter elements of the last two year’s global
oversupply situation. The decrease in supply will allow
both exporters and importers to bring down some of the
severely high stocks that accumulated last year. Despite
the dramatic decrease in production and trade, high stock
levels will fuel another year of modest global
consumption growth.
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