Serbia’s drought has drastically reduced sugar beet yields, with all major spring crops affected by high temperatures, according to agroeconomic analyst Milan Prostran. Corn and soybeans suffered the most, while sunflowers were less affected. Corn, which accounts for 15–17% of agricultural GDP, saw yield losses of 50–60%, and soybeans fared even worse.
Sugar beet cultivation has fallen significantly over the years—from 110,000 hectares when Serbia had 15 sugar mills to around 40,000 hectares today. Corn covers 900,000–1,000,000 hectares, soybeans about 200,000, and sunflower 200,000–300,000 hectares. Prostran notes that while the full impact will only be clear after harvest, the damage in value terms is already significant.
Prices of final products will depend on global markets, stock levels, and government interventions like tax breaks or loan deferrals. Sunflower prices are likely to rise, while sugar prices will be influenced more by industrial demand than by consumers. Higher sugar and fruit prices may reduce household processing.
Prostran also emphasizes that sugar beet has very low demand elasticity, as it cannot be stored like wheat, corn, or sunflowers. Production must be sold immediately, limiting flexibility. Leading sugar producers in Serbia include Sunoko and Hellenic Sugar.
Overall, global market prices strongly dictate domestic prices for sugar, soy, corn, and wheat. While these are essential commodities, price increases may lead to reduced consumption.
