Damaged crops from India to Brazil mean the world will not have enough sugar for a second successive year. The sugar price has surged 88% since January 1, 2009 last week reaching its highest since April 1981.
Parts of Brazil, the largest grower, have been drenched by rainfall four times more than normal, making the crop too wet to harvest. India, the biggest consumer, had its driest June in 83 years and might have to double imports.
Global demand will exceed output by as much as 5-million tons in the year to September next year, leading to a record two-year shortfall, according to the International Sugar Organization in London.
All this news will affect sugar products directly and other product lines made with sugar are boosting expenses for food makers from Kellogg to Kraft Foods