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German 2009/10 Refined Sugar Output Seen Rising

Source: Reuters
26/08/2009

Hamburg, Aug 26 - Germany is likely to produce 4.02 million tonnes of refined sugar in the 2009/10 crop season, which starts this autumn, up from 3.7 million last season, the association of German sugar producers WVZ said on Wednesday.

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It estimated German farmers had raised sugar beet plantings to 379,000 hectares from around 369,000 hectares last season.

In its first forecast of Germany's new sugar crop, the association said it expected a higher beet yield per hectare of 67.2 tonnes against 61.8 tonnes last season.

The expected beet sugar content could rise slightly to 17.73 percent against 17.43 percent last season.

The WVZ had told Reuters on Aug 20 that it expected German farmers to sow more beet this year and that plantings were developing well in favourable weather.

The forecast would mean that German farmers will produce about 1.247 million tonnes of sugar above their European Union production quota this season against 956,000 tonnes over quota last season.

The EU limits production of some subsidised crops, such as sugar, by imposing output quotas.

Germany's sugar production quota in 2009/10 is 2.78 million tonnes. Along with the transfer of 116,000 tonnes of unsold quota sugar from last year, this means German farmers can sell 2.89 million tonnes of sugar under EU rules this season, the WVZ said.

Sugar produced above the quota cannot be sold as food.

The WVZ said in June it expected Germany to heavily exceed its EU production limit in the new season and that the surplus sugar would be sold for non-food industrial use, largely bioethanol production.

Robust demand from the bioethaol industry was seen as a reason for increased plantings.




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