Drought in France raises global sugar prices and puts sugar beet production at risk

A prolonged lack of rain is seriously compromising sugar production in France, the largest producer in the European bloc. The absence of precipitation in the main sugar beet growing areas, expected for at least another two weeks, raises a warning for the sector. This scenario of concern about European harvests is already driving a notable appreciation in the international sugar market.

Climate challenges drive rise in sugar prices on the international market

White sugar prices registered an increase of almost 10% in the last week, reaching their highest level in nine and a half months on Wednesday. This escalation is influenced not only by the drought in Europe, but also by the El Niño climate phenomenon in Asia, which affects other producing regions. Previously, values ​​had reached their lowest levels in more than five years, due to an abundant global supply, directly impacting the profitability of sugar mills.

Unfavorable prospects for the sugar beet harvest in the European Union

The European Commission has released a worrying estimate for the European Union’s 2026/27 sugar harvest, projecting a 15% reduction compared to the previous period, totaling 14.13 million metric tons. This drop is attributed to two main factors: a 9% decrease in planted area and a 6.5% drop in crop productivity. France leads expectations of a greater drop in productivity, followed by Germany and Poland, other major producers in the bloc.

Critical scenario for French crops and the forecast of water scarcity

In France, the plantation situation is quite heterogeneous, with some areas showing dry leaves, while others demonstrate greater resistance. Franck Sander, president of CGB, the French association of beet growers, expressed great concern, saying a lack of rain over the next two weeks would be “catastrophic” for crops. Météo France, the local meteorological agency, predicts no precipitation in the sugar beet plains around Paris and northern France until at least mid-July, worsening the forecast. Michael McDougall, an independent consultant for the sugar sector, reinforces that low rainfall levels will persist in western Europe for the next ten to fourteen days.

The pesticide debate and beetroot’s vulnerability to yellowing

In addition to the drought, French farmers face concerns about the spread of yellowing disease, intensified by heavy aphid infestations at the beginning of the harvest. This disease devastated crops in 2020, after the European Union banned the use of certain neonicotinoid pesticides, claiming they harmed bees. France even granted temporary exemptions for 2021 and 2022, giving in to pressure from producers who warned of the sector’s unviability. However, these exemptions were later revoked by the French Council of State, following a decision by the EU’s highest court.

Main factors impacting sugar production and the sugar market in Europe

The challenges facing sugar production in France and the European Union are multiple and interconnected, as noted by industry experts. The combination of climate and regulatory elements creates a scenario of uncertainty for supply and prices.

• Prolonged drought:The lack of rain in the main sugar beet producing regions in France and other parts of Europe is the most immediate factor, directly affecting the health and development of the plants.
• Fall in EU productivity:The European Commission estimates a significant reduction of 15% in European Union sugar production for the 2026/27 harvest, as a result of the smaller planted area and decreased productivity.
• Yellowing disease:The threat of aphid disease persists, reminiscent of the 2020 crisis. The vulnerability of crops is an ongoing risk to production.
• Pesticide restrictions:The debate over banning neonicotinoids and the search for temporary exemptions highlights the tension between environmental protection and the need to ensure crop health.
• Global market:External factors, such as El Niño in Asia, contribute to the volatility of sugar prices, demonstrating the interconnectedness of the commodities market.

The French Parliament is currently debating a new amendment to a more comprehensive agricultural bill, seeking a new exemption for the use of pesticides. Although the Minister of Agriculture does not oppose the measure, she would prefer the issue to be discussed separately to avoid the risk of rejection of the larger project. The final decision, expected at the end of this month, however, would come too late to influence the current harvest, as aphids infect plants in spring and symptoms appear in summer.