European sugar producers have announced substantial production cuts for 2026 as exceptional yields and elevated stock levels create unprecedented supply pressures across the region.
Cosun has reduced beet allocation to 90% from 100%, citing exceptional yields that have generated higher-than-usual stocks and limited sales opportunities. Pfeifer & Langen is requesting a 15% volume reduction for next year, followed by even deeper cuts of 20-30% in 2027.
The production cuts come as Europe’s sugar beet campaign progresses strongly, with French harvest reaching 50% completion and sugar content averaging 18.4%. The Netherlands reports steady sucrose levels at 17.3°, while cumulative French yields hit 86 tonnes per hectare despite regional challenges from virus yellows and drought in southern Picardy, Seine-et-Marne and Champagne.
The MARS November bulletin maintained EU sugar beet yield forecasts at 76.3 tonnes per hectare, marginally above 2024’s 75.7 t/ha average. France shows 5% year-over-year improvement while Romania declined 10%.
Current West-EU Vesper Price Index stands at €490/mt DAP, reflecting limited export opportunities as producers remain reluctant to sell at levels approaching breakeven thresholds. Export parity calculated at €401/mt provides a theoretical floor for European prices.
The upgraded EU-Ukraine DCFTA entered into force on November 4th, establishing a permanent 100,000 tonne annual sugar quota. This represents a substantial reduction from 2023’s 500,000 tonne exports and includes a safeguard clause enabling measures if imports cause serious difficulties at the Member State level.
While near-term pressure persists as prices decline toward export-parity levels, the announced production cuts signal meaningful supply tightening for 2026, though the magnitude of total EU acreage decline remains uncertain amid weak competing crop economics.
This newsarticle is part of a more comprehensive sugar market analysis. For the full analysis, visit: https://app.vespertool.com/market-analysis/2438
