Sugar deficit to continue in 2009

An international sugar production deficit over the next two years has Canegrowers cautiously optimistic about growers' prospects in 2009.
While the current international financial crisis has placed the sugar industry on the same rollercoaster as other commodities and markets, Canegrowers says the fundamentals of supply and demand continue to point to a global production deficit.

And it says restructure, improved efficiencies, reduction of key input costs, international demand and a lower dollar are all likely fillips for the forthcoming season.

The grower lobby group says some growers and millers have already had some success in securing improved prices, for at least a proportion of production, at what are likely to be profitable levels.

"Improved prices may not be reflected in the crop until next year, as 2009 will continue to be part of the recovery, but we are looking at the benefits flowing through to the pockets of farmers by 2010," Canegrowers chief executive Ian Ballantyne said last week.