Sugar market boosted by drought in Italy

A DISASTROUS Italian sugar beet harvest has improved market prospects for other EU producers, including Ireland, where a bumper crop is expected.

Italian sugar output is forecast to fall below 1m tonnes, compared to 1.49m tonnes in 2002.

Italy is the EU’s third largest producer, but sugar market prospects have also been affected by the Brussels decision of last week to reduce sugar production quotas for 2003/04 by 215,513 tonnes.