South Africa: Sugar Decline To Continue

South Africa’s 2007/08 sugar season is estimated to have produced 19.72 million tons of sugarcane, a 2.7% drop from last season, according to the US Dept. of Agriculture’s Foreign Agriculture Service (USDA-FAS). For the 2008/09 season, the area harvested is expected to continue its slow decline of the past few years.

The Bio-fuels Industrial Strategy of South Africa, which was approved on December 5, 2007, recommends that only sugarcane and sugarbeet be used for ethanol production. This biofuel strategy has created increased interest in alternative uses of sugar, which could reverse the declining trend.

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