Mexico: Sugar Semi-annual
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A rebound in Mexican sugar production is forecast for marketing year (MY) 2020/21, after a historic drought decimated the previous year's crop. However, low cane yields are expected due to lingering drought effects, pest pressures, and abnormal heavy rainfall in some producing areas. While production is forecast to rebound, exports are forecast down on reduced U.S. sugar needs. Additionally, government policies at both the state and federal level have recently been enacted to discourage the consumption of high sugar content food and beverages. Aimed at preventing further growth of obesity and diabetes in both children and adults, a new nutrition labeling law will go into effect on October 1, and Oaxaca became the first state in the country to ban the sale of high sugar content foods and beverages to minors under the age of 18. While the full effects on consumer consumption are not known, a number of stakeholders are expressing concern about potential impacts on the sugar cane sector.
