Australia's sugar exports are to hit 4m tonnes for the first time in a decade, helped by a boost to production from "improved seasonal conditions" for the country's cane crop.

The world's third-largest sugar exporter is expected to ship 4m tonnes in 2016-17, according to the USDA's Sydney bureau.

This is higher than the USDA's official estimate of 3.9m tonnes.

Separately, USDA staff in Sao Paulo unveiled an increased estimate too for sugar exports from Brazil, the top ranked shipper of the sweetener, despite worsened cane production prospects. 

Favourable season, expanded area

The Australian sugar industry is vulnerable to severe weather conditions, such as cyclones, droughts and flooding.

However, the current Australian Bureau of Meteorology outlook is for warmer and drier weather. These moderate seasonal factors in recent years have led to expansion in area and production.

The Australian sugar production is expected to reach 5.1m tonnes in 2016-17, according to the report, higher than official figures at 5m tonnes.

High sugar prices have also encouraged cane farmers to increase production areas, which have risen over 40 percent since the beginning of the year to 400,000 hectares, compared to the 10-year average of 380,000 hectares.

Returns to cane growers are expected to rise by 19% from a year earlier, according to Abares, an Australian government crop agency.

Brazilian slowdown

A slowdown in sugar production in the largest sugar exporter Brazil, along with a number of other countries, has piped up demand for Australian sugar.

Australia exports to East Asia, China, Indonesia, Japan, Korea, Malaysia, Taiwan, the United Sates and New Zealand.

The country's "capacity to store over 2m tonnes of sugar in a network of bulk port terminals," allows it to supply customers throughout the year, the report said.

The bureau added that Australian sugar cane production will continue to be affected by yellow canopy syndrome, a disease causing the leaves of the cane plant to turn yellow and to reduce sugar content in cane.

Though the disease is expected to reduce sugar yield in some farms by around 30% at some farms, overall yields are expected to be stable in 2016-17.

Fount: http://www.agrimoney.com/news/australias-sugar-exports-to-hit-highest-in-a-decade--10013.html