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Food in Asia   More sugar cane and sugar beets

China total sugar production to be almost flat

Sugar caneChina’s MY 2017/18 total sugar production is forecast to rise 1 million metric tons (MMT) from MY 2016/17, as high sugar prices are encouraging farmers to plant more sugar cane and sugar beets.

These high prices have also allowed sugar mills to return to profitability, and this has slowed industry consolidation.

READ MORE More than enough sugar in India to meet domestic needs

Increased domestic sugar production and an expected easing of prices next year are forecast to result in steady growth in sugar consumption, as well as a decrease in imports.

China’s cane sugar production is expected to increase for the second year in a row in MY 2017/18, with production forecast at 9.2 MMT, up 800,000 MT from the revised MY 2016/17 estimate.

This increase is due to a significant expansion in acreage, as higher prices have increased farmer returns and encouraged them to plant more cane.

China’s MY 2017/18 beet sugar production is forecast at 1.3 MMT, up 200,000 MT from the revised MY 2016/17 estimate as a result of higher planted area.

MY 2017/18 sugar consumption is forecast at 15.8 MMT up 200,000 MT from MY 2016/17 as sugar prices are expected to ease next year as a result of higher production.

The sugar industry expects steady consumption growth of two to three percent annually in the near future.

China’s annual per capita sugar consumption is 11 kilograms (KG), far below the world average of 24 KG according to the World Health Organization data.

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