Region 3 sugar prices rise sharply as energy costs rise and Ukraine crisis intensifies

February 24, 2022

EU reported sugar prices rose on average to 422 €/t exw in bulk in December 2021 (up 7 €/t), according to European Commission data released on 23 February 2022. Sugar prices in "Region 3" - the deficit areas of southern and eastern Europe - rose sharply to an average of 512 €/t in December (up 16 €/t), the data showed.

The increasing costs of energy are likely to cost EU sugar producers - especially refiners - dearly. It may be estimated that the cost of refining imported bulk raw sugar could already have increased by 20% to 30%. Moreover, EU sugar beet farmers will suffer increasing costs of diesel and fertilizers. News today that Russia has invaded Ukraine, sending Brent Crude sharply up to $104 a barrel and stock markets plunging, seems likely to send EU sugar prices even higher.

Meanwhile, EU sugar imports under normal customs procedures rose sharply in the first three months of 2021/22, latest Eurostat and ONS data showed, reaching 528,000 tonnes in December 2021. For more details, please see: Sugar trade flows (julianprice.com)

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