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FAS/Pretoria’s Sugar annual report provides information on the production, supply, and distribution of sugar in South Africa for marketing year (MY) 2023/24, MY 2024/25, and MY 2025/26.
Hot and dry conditions in the autumn and winter of 2024 led to a drop in the production of South African sugar cane. This is expected to translate into a slight decrease in sugar production and exports.
On July 19, 2024, the South African government published a new sugar import tariff of R1,093 per metric ton (US$60.09/MT). This tariff change was triggered by a downward trend in global sugar prices and will apply to sugar imported into the Southern Africa Customs Union (SACU).
Egypt’s sugar production in marketing year 2024/25 (October to September) is forecast to reach 2.6 million metric tons, down 110,000 tons from USDA official MY2023/24 production estimates on lower cane sugar production.
Post expects sugar cane production in MY 2024/25 to show modest growth on carry-over cane and slight increase in harvested area. Sugar production is forecast to improve on slight increase in cane deliveries. The sugar industry effected notional price hikes of white and brown sugar which translated to increases in retail prices of sugar.
Post forecasts South African raw sugar production at 2.17 million MT in MY 2023/24, up 9 percent from 2 million MT in MY 2022/23, based on an increase in the quantity of cane delivered to the mills and consistent milling efficiencies.
Post forecasts South Africa’s sugar cane crop will increase by 3 percent to 18.5 million metric tons (MT) in market year (MY) 2023/24 assuming a return to normal weather conditions, an improvement in yields, and industry efforts to increase production, especially for small-scale farmers.
The industrial demand for sugar beets continues to rise, as it provides a higher price, thus incentivizing many farmers to plant more beets. In marketing year (MY) 2022/23 the sugar beets were subject to an outbreak of Rhizomania disease.
On October 28, 2022, Tongaat Hullet’s management announced that they opted to go into voluntary business rescue due to the company’s severe levels of financial distress. On Tuesday November 1, Tongaat Hullet missed the deadline to pay R401 million ($22.9 million) for cane delivered by 4,300 growers in September.
Post estimates that the South African sugar cane crop will grow by 7 percent to 18.4 million metric tons (MT) in the 2022/23 market year (MY), up from 17.2 million MT in the 2021/22 MY. This is based on a return to normal weather conditions, an improvement in yields, and industry efforts to increase production, especially for small-scale farmers.
Egypt maintains a steady production of sugarcane, however sugar beet production areas are expanding. FAS Cairo (Post) forecasts refined sugar production in marketing year (MY) 2022/23 to increase by approximately 2.5 percent, or 70,000 metric tons (MT), to reach 2.92 million metric tons (MMT).
Post forecasts that the South African sugar cane crop will expand by 9 percent to 18.8 million metric tons (MT) in the 2022/23 market year (MY), based on a return to normal weather conditions, an improvement in yields, and marginal increases in planted area.