Tereos sees EU sugar beet area falling by 9% next season

By May Angel

GENEVA, April 23 (Reuters) - French group Tereos, one of the world's largest sugar makers, said on Wednesday it sees the area dedicated to growing sugar beet in Europe falling by 9% next season as slumping prices in the bloc take their toll.

Thanks to surging sugar exports from Ukraine, high output and falling consumption, EU sugar prices dropped in February to 541 euros per metric ton, down 35% from a year ago and the lowest since September 2022, data from the Commission shows.

Speaking at S&P Global's sugar conference in Geneva, Tereos' commercial director David Souriau said the decline is "major" for the sugar sector, adding he is even more concerned about recent mill closures in France, the Czech Republic and Austria.

The closures on the one hand tighten the market and give prices of the sweetener a chance to recover, but on the other hand they could also lead to price volatility, which is difficult for the industry to manage.

"Capacity once closed can't be rebuilt instantly. These events pose questions about the risk of volatility and for me, that's a key aspect (of the market) for this year and for years to come," he said.