The parent group of beet processor British Sugar have said higher prices for sugar with a weak sterling rate have driven a rise in its half-year profits.
In the Associated British Foods' 2017 Interim Results report, the company said profits in the first half was 'much improved' compared to last year.
"With sales fully contracted for the year we expect an improvement in British Sugar's result for the full year," they said.
The company said last year sugar production was at 900,000 tonnes which was 'much lower than normal', due to unfavourable planting conditions.
This is in contrast to its reported 2014 crop production of 1.45m tonnes, a record.
"The campaign started later in order to maximise the growth of the crop and was completed at all sites by late February.
As a consequence the high level of sugar stocks at the beginning of the year has reduced to meet sales demand.
The contracted growing area for 2017/18 has been increased and planting by growers is well advanced."
'Exciting opportunities'
With 2016/17 forecast to be the second year of global sugar deficit, world prices are higher than last year.
A tightening of EU stock levels has strengthened domestic prices across the region and in Africa, domestic and regional prices increased as a result of higher US dollar denominated world prices.
The lifting of European Union sugar quotas in October 2017 and leaving the EU, offers 'exciting opportunities' for the UK beet sugar industry, the company said.
Speaking ahead of an NFU conference, Paul Kenward, Managing Director of British Sugar said: "We are one of Britain’s most globally competitive industries and we are ready to work with farmers, importers and government to design a UK sugar policy that allows our world-leading domestic sugar industry to continue to thrive."
"Over the past 100 years we have built a world-class UK beet sugar industry, contributing to local economies and communities, and benefiting UK plc.
"Our investment of £250 million over the past five years has made our factories the most efficient in the world. Beet sugar yields in the UK have improved by more than 25% in the last ten years."
