Europe’s sugar sector is undergoing a sharp downturn as prices fall to their lowest level in three years, driven by surplus Ukrainian imports, higher beet production, and weaker consumption. Prices dropped more than a third since last summer to €536 per tonne, forcing five factory closures in 2025 alone. Major producers, including Tereos, Südzucker, and Cristal Union, reported steep profit declines, mounting debts, and warnings of further shutdowns if market conditions do not improve. Speculative traders are also betting on further price drops, intensifying pressure on the industry.

Producers cite soaring input, energy, and regulatory compliance costs as key challenges, alongside EU trade policies that allow tariff-free imports from competitors not subject to the bloc’s environmental standards. Ukrainian imports, exceeding one million tonnes in 2023 and 2024, have been particularly disruptive, though Brussels has since cut quotas by 80%. While concerns about sugar demand from weight loss drug adoption remain, industry leaders say competitiveness and policy misalignment pose the biggest threats to Europe’s long-term sugar production.

Link:
https://www.ft.com/content/bdb1dddc-5bdf-4611-aa93-bf75da65f76d