Mexico’s sugar production seen at lowest in 10 years

Mexico’s sugar production in the 2023/24 season (Oct-Sept) was projected on Friday to fall 15% from the previous crop to 4.7 million metric tons, the lowest volume for the last 10 years, said analyst and supply chain services provider Czarnikow.

Mexico’s sugarcane crop had a poor development this season, due to insufficient rain, resulting in low cane volumes per hectare as well as poor industrial yields during processing, Czarnikow’s analyst Stephanie Rodriguez said in a report.

“With lower sugar production, Mexico will have to import sugar, just like we saw last season,” she said, adding that the country will likely buy sugar from Central American producers such as Guatemala, Honduras and El Salvador to be able to fulfill its export quota to the United States.

Last season, more than 50% of Mexican sugar imports came from India, an origin that is unlikely to be on the market this year, as the Indian government has not authorized exports due to limited local production.

“This means that Mexico is likely to be even more dependent on Central American supply than normal. Central American countries normally export around 3.3 million tonnes of sugar. This year, most will go to Mexico,” the analyst said.

Tags: sugar, Mexico