Inclement weather and reduced imports have depleted stockpiles of sugar in the European Union, according to Nestle, the globe's largest food company.
Bloomberg reports the supply of the sweetener in the European Union is so low it will not meet demand. Further, the shortage has forced up prices in various member nations as much as 70 percent, according to Rabobank International.
"There is a major issue in the EU of not being enough sugar available to meet demand, which inevitably has an adverse effect on price," according to a statement from Nestle. "Over the past few years, the necessary imports from outside the EU have not arrived as anticipated, and bad weather conditions in some sugar-producing countries have affected yields."
At 8:07 a.m. on Thursday, sugar futures dropped 1.46 percent, a .0043 cent slip to 29.06 cents per pound.
Farmers in the European Union could not gather sugar crops last winter because of the severity of the cold and the snow, which minimized production and prompted shortages of the sweetener.
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