Hamburg, June 23 - German refined sugar production in the new 2009/10 season is likely to exceed the 3.7 million tonnes produced in 2008/09, the head of German sugar industry association WVZ said on Tuesday.
German farmers are believed to have planted about the same area with sugar beets for harvesting this season as last year, when 369,000 hectares were planted, WVZ chief executive Dieter Langendorf told Reuters.
But favourable weather could raise sugar yields and increase German refined sugar production in 2009/10 above 3.7 million tonnes, he said.
"I think we will definitely exceed this level," he said, but could not give a precise figure.
Beet sowings were completed without problems and plantings were developing well, Langendorf said. Germany was on course to start its sugar beet harvest on a normal schedule in the second half of September, he said.
"Sowings were finished on time and none had to be replanted so planting took place in almost optimal circumstances," he said. "The indications are currently that we will have a good harvest.
"I believe the sowed area will be about the same as last year, perhaps with a sight tendency towards an increase."
German refined sugar production of over 3.7 million tonnes would mean the country would again substantially exceed its European Union sugar quota of 2.9 million tonnes in the new season. The quota was also exceeded in 2008/09.
Under EU rules, such over-quota sugar cannot be sold as food in the bloc's tightly regulated sugar market.
But it can be sold for non-food industrial use. Langendorf said he expected Germany's over quota-sugar from the upcoming crop to be largely sold for bioethanol production.
Two out of Germany's three largest bioethanol plants used only sugar as feedstock while the other switched between sugar and grains, depending on price.
"We are expecting good demand from bioethanol," he said.
HOPES EU WILL PERMIT MORE EXPORTS
Germany's sugar industry also hoped the European Commission, the bloc's executive arm, would permit larger exports of non-quota sugar in the new season to countries outside the EU.
Such sales are limited because of World Trade Organisation rules on subsidised sugar exports.
In the 2008/2009 season covering last winter's crop, the EU limited such exports at 650,000 tonnes. [ID:nL7213101]
It was hoped this could be increased to 900,000 to 950,000 tonnes in the new season, Langendorf said.
"The Commission has indicated that it is considering an increase in this level which would permit greater exports."
"This has not yet been decided but the indications we are receiving are favourable and we are expecting an increase of around 300,000 tonnes."