7% Growth Expected in South Africa's Raw Sugar Exports for 2023-24

The U.S. Agricultural Department projected that sugar production in South Africa will rise to 7% in the current marketing year, from May 2023 to April 2024. The report added that the exports are expected to rise to 770,000 metric tons in 2023-24, up from 722,000 metric tons in the previous year.

The domestic price of raw sugar in South Africa will be higher than the country’s export prices. The weak South African currency could make export prices more attractive in the current marketing season. Exports from South Africa also increased from the predicted estimate of 650,000 tons in the current marketing year.

The production of sugar is likely to be up to 2.17 million tons in the current season from 2.0 million tons in the previous year. The consistent supply of sugarcane and mill efficiencies are the major reasons behind the surge in the country’s sugar production.

Currently, South Africa is the second largest sugar producer in Africa. The USDA also estimated that the sugar closing stocks of South Africa will decrease to 79,000 tons in 2023-24 from 104,000 tons of sugar in 2022-23. This decrease is due to the increased sugar exports and local sales.

World’s Sugar Exports

According to the 2022 sugar export data, Brazil was the major sugar exporting nation in the world, exporting sugar worth $11 billion. Brazil accounted for around 36% of the total sugar exports of the world. India was the second-largest sugar-exporting nation in the world, accounting for 18% of the total sugar exports.

In the recent updates, experts are speculating on the upcoming ban on the export of sugar from India. This decision will disrupt the global sugar market and raise the prices of sugar. In September, the global sugar prices were at a 12-year high.

The low sugar production and uneven weather due to El Nino are the main reasons behind the speculated sugar export ban from India. Although experts are predicting a surplus in the production of sugar from Brazil.

The Bottom Line

In conclusion, the USDA is predicting a 7% growth in the raw sugar export production of South Africa. With increasing production, the exports of sugar from South Africa will be increased. Reports revealed that sugar exports are rising to 770,000 metric tons in this marketing year.

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