Domestic sugar Delivery figures are in for the first two months of the marketing year, adding further evidence for trends in the evolution of sugar demand. In 2016/17, beet sugar deliveries grew 14.8 percent, while cane sugar deliveries fell by 6.1 percent. This marketing year, beet sugar deliveries rose 11.1 percent in October and November vs. the same months a year prior, while demand for cane sugar was down 4.4 percent.
In October and November, beet sugar deliveries saw double-digit growth in many categories: up 31.9 percent to the confectionery sector, up 55.9 percent to hotels, restaurants, and institutions, and up 24.1 percent to retail grocers and chain stores! It did show minor declines in deliveries to the ice cream and dairy and beverage sectors and a full 12.5 percent fall in deliveries to wholesalers, grocers, jobbers, and dealers. For those same two months, cane sugar saw growth in only a few major categories, up in the single digits for multiple uses, hotels, restaurants, and institutions, and the “all other deliveries” catch-all.
A reduction in the price premium for cane sugar may slow down the trend seen in 2016/17, when beet sugar deliveries rose to all but one sector, the mirror image of cane sugar, which only saw growth in deliveries to two of the smaller demand sectors.
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