The U.S. Department of Agriculture (USDA) has projected that Australia’s sugar production is likely to rise to 4.2 million metric tons in the 2024/25 marketing year, up from an estimated 4.1 million tons in 2023/24. The anticipated increase in production is attributed to a projected small rise in sugar cane harvest area and a modest increase in yield for the 2024/25 marketing year, as stated in the USDA report dated April 16.
Furthermore, the report forecasts that raw sugar exports from Australia are expected to increase to 3.45 million tons in 2024/25, up from 3.35 million tons in the previous year. Australia, although a relatively small grower, is a significant exporter due to limited local demand. The majority of its raw sugar is exported to countries such as Japan, Indonesia, and South Korea, with almost no refined sugar being exported.
While raw sugar prices have declined from a 12-year peak reached in November, they remain historically high. A global supply deficit is expected to emerge in the 2024/25 season, contributing to the ongoing strength of raw sugar prices.