Tereos sees EU sugar output falling to 38-year low as severe weather hits beet crops

French sugar maker Tereos expects extreme heat and drought to cut growers’ sugar beet yields by more than 20% vs. last year. This is expected to drive EU sugar output to a 38-year low this summer, tightening supply conditions. The outlook implies near-term headwinds for the company’s inputs and could support sugar pricing, but the direction for margins is uncertain without offsetting pricing power.