Sugar lows

OECD Observer

Click to enlarge.

World sugar prices are likely to remain low over the next few years due to increased exports from low-cost producers and continuing high support and protection in many OECD countries, the latest issue of the OECD Agricultural Outlook found.

Brazil, the leading low-cost producer, has a competitive sugar industry that matches the total tonnage currently traded on world markets. Developing countries hold the key to consumption growth, and the potential in the longer term to eat into the large stocks of sugar on the world market and improve the balance between supply and demand. The Agricultural Outlook cites China as a country with apparent scope to boost consumption and imports as incomes rise, but notes that other factors, such as official import policies and the availability of artificial sweeteners, must also be taken into account.

The latest Agricultural Outlook sees raw sugar prices improving slightly to US$191.8 per tonne in 2004/2005, up from US$172.0 in 2003/2004, but then falling in subsequent years to reach US$165.3 per tonne in 2008/2009. World stocks will see little change, at 68.3 million tonnes in raw sugar equivalent in 2008/2009 compared with 67.5 million in 2003/2004.

World production of agricultural products in general is forecast to grow over the period to 2008, boosted by a revival of the world economy from 2004 onwards, with an increase in consumption of coarse grains and oilseeds and a shift away from wheat- and rice-based staple foods towards more processed food and higher protein products such as meats.

©OECD Observer No 238, July 2003




Economic data

E-Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Suscribe now

<b>Subscribe now!</b>

To receive your exclusive paper editions delivered to you directly


Online edition
Previous editions

Don't miss

  • How do the largest community of British expats living in Spain feel about Brexit? Britons living in Orihuela Costa, Alicante give their views.
  • Brexit is taking up Europe's energy and focus, according to OECD Secretary-General Angel Gurría. Watch video.
  • OECD Chief Economist Catherine Mann and former Bank of England Governor Mervyn King discuss the economic merits of a US border adjustment tax and the outlook for US economic growth.
  • Africa's cities at the forefront of progress: Africa is urbanising at a historically rapid pace coupled with an unprecedented demographic boom. By 2050, about 56% of Africans are expected to live in cities. This poses major policy challenges, but make no mistake: Africa’s cities and towns are engines of progress that, if harnessed correctly, can fuel the entire continent’s sustainable development.
  • OECD Observer i-Sheet Series: OECD Observer i-Sheets are smart contents pages on major issues and events. Use them to find current or recent articles, video, books and working papers. To browse on paper and read on line, or simply download.
  • How sustainable is the ocean as a source of economic development? The Ocean Economy in 2030 examines the risks and uncertainties surrounding the future development of ocean industries, the innovations required in science and technology to support their progress, their potential contribution to green growth and some of the implications for ocean management.
  • The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. The gender portal monitors the progress made by governments to promote gender equality in both OECD and non-OECD countries and provides good practices based on analytical tools and reliable data.
  • They are green and local --It’s a new generation of entrepreneurs in Kenya with big dreams of sustainable energy and the drive to see their innovative technologies throughout Africa. blogs.worldbank.org
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at www.oecd.org/careers .

Most Popular Articles

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2017