Sugar beet planting is nearing a decade-low amid falling prices. Industry executives said this at the Dubai Sugar Conference on Thursday.

Sugar consumption in Western Europe and America is decreasing due to increased taxes on sugary drinks, increasing health concerns, and the use of weight loss drugs. Meanwhile, global sugar production is growing and putting pressure on prices.

The EU spot market has seen sugar prices fall to their lowest levels in four years, and world prices are nearing five-year lows. This makes it hard for factories and farmers?in Europe, who have higher labour costs and stricter rules on environmental protection than their competitors overseas, to make a profit.

Tereos, one of the world's largest sugar producers, told the conference it expects the EU's sugar beet planted area ?to fall 6%-7% ahead of the 2026/27 (October-to-September) season, to its lowest in about a ?decade.

Czarnikow, a sugar broker and?supply chain?services company, forecasted a 5% decline in the beet-growing area for 2026/27.

Marion Hoff, Tereos Europe's sales director, warned of looming factory closures in the EU as farmers abandon sugar beet. She described it as a crop that is becoming increasingly risky.

"If we reduce acreage, we must reduce our industrial assets or we will not be competitive." This is the mathematical result if the acreage continues decreasing, she said on the sidelines of a conference.

Stephen Geldart, Czarnikow's head of analysis, stated that the reduced?planting would likely push EU sugar production down to 15.5 metric tons from 17.1 metric tons in the season 2025/26.

Geldart and Hoff made their comments before Nordzucker, Germany's second largest sugar refiner, announced that it would close its sugar factory in Slovakia by the end of this season due to the continued depressed sugar market in Europe.

The company has not disclosed the size of the factory, or the number?of jobs at risk.

The sugar industry in Europe has shrunk significantly, with only five major players producing 80 to 85% of sugar.

(source: Reuters)