EU sugar production set to rebound in 2022

S&P Global Platts

Wednesday, December 29, 2021

EU sugar production in the MY 2021-22 is set to rise for the first time in four years. The 2020-21 crop was especially bad with the ban on neonicotinoids and warmer winter causing a high incidence of virus yellows. The cooler weather in MY 2021-22 has resulted in a lower incidence of virus yellows, with some countries not requiring the use of neonicotinoids even though the ban was temporarily lifted. The expanding rollout of E10 as part of energy transition with countries look to fulfill their green agenda is set to cement ethanol demand in the coming year. With sugar used as a feedstock for ethanol, this could increase industrial demand. The UK changed its standard gasoline specification from E5 to E10, which can contain up to 10% ethanol. E10 was already in use across much of Europe, with France the greatest European consumer of the fuel.

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