Sugar is getting increasingly expensive

By: Trademagazin Date: 2024. 01. 09. 12:38

Due to the negative effects of climate change, the sugarcane harvest is decreasing worldwide, and a significant increase in sugar prices can be expected in the coming period. Several major sugar-producing countries have been affected by the drought, including India and Thailand, which are among the largest exporters of sugar cane. Logistical problems related to the drought make it even more difficult for sugar to reach the international market.

Prices on the world market rose by an average of 8.9 percent last year, and a further 5.6 percent rise is expected this year. In Hungary, however, the increase in sugar prices is even greater. According to data from the Central Statistical Office (KSH), the average retail price of sugar increased by 49.7 percent year-on-year in November.

Serious changes are also taking place in the field of Hungarian sugar production. While more than two dozen sugar factories operated in the country at the time of the regime change, currently only one sugar factory, owned by the Austrian Agrana, operates in Kaposvár. The factory’s plans include the creation of a producer group in the countryside, which will unite small producers. The group’s goal is to jointly achieve a strong position during price negotiations and thereby increase their market competitiveness.