The price of sugar will increase by 40% over the coming year, according to the chief commodities forecaster at the Australian Bureau of Agricultural and Resource Economics (ABARE). An outbreak of orange rust in many Queensland sugar farms meanwhile has been blamed for the predictions of a 25% drop in production.
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Heavy rainfalls could have an impact on sugar production for several years to come, warned the ABARE.
The impact on national export levels is expected to be a 25% fall to 3.1m tonnes. The value of these is, however, not expected to fall beyond 10% because of the increased cost of the commodity.
