THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
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The price of sugar, which is widely used in the food industry, is increasing day by day. How will this affect food producers and consumers?
Russia’s operation in Ukraine in February 2022 and the subsequent process led to a sharp hike in the cost of ingredients such as wheat, vegetable oil and dairy products. Sugar remained stable until 2023, when external factors began to affect producers globally and sugar prices began to climb.
Why is the cost of sugar rising?
Climate change has previously been identified as a major threat to the production of some crops, such as coffee. Now the impact of the climate crisis is also being felt by sugar producers. Across Europe, severe drought and other adverse weather conditions have severely damaged beet production. The European Union (EU) is the world’s leading sugar beet producer, accounting for around 50 percent of total annual production. Similarly, sugar cane production in major producing countries such as Brazil has also been affected by extreme weather conditions, pushing up prices.
How will rising sugar costs affect producers?
According to the Food and Agriculture Organisation of the United Nations (FAO) Sugar Price Index, the cost of sugar increased by 0.8 percent to 135.3 index points in January 2024. With this increase in the cost of raw materials, producers are also facing a rise in production costs, including a rise in energy bills. All of this adds up to an extremely financially challenging picture.
How will rising sugar costs affect consumers?
Demand for sugar-containing products such as confectionery, chocolate, fizzy drinks and biscuits is not decreasing. On the contrary, demand for these products continues to grow. What’s more, global sugar consumption is projected to continue growing at around 1.4 percent per year, reaching 199 metric tonnes in 2029.
