THE sugar deficit is no more - at least that's the opinion of sugar market analyser Tom McNeill.

The managing director of Green Pool industries stopped into Proserpine on Friday to talk with local growers about the global sugar market and where it could be headed.

He predicted the current cycle of a sugar deficit was over and that we were headed for a surplus over the next few years.

"Long term, Australia remains an efficient producer,” he concluded at a talk at Hotel Metropole.

"The global market is swinging back to a surplus after two years of deficit. Personally, I would be shocked if there was a deficit (in the next year).”

Based on current exchange rates and assuming sugar per pound costs between 14-17 US cents, Australia can sell sugar for between $410-500AU a tonne.

"At the moment prices are flat and it's only the Aussie dollar that is giving us a better return,” Mr McNeill said.

Mr McNeill was positive on the current US / Australia exchange rate, saying current costs meant most sugar producers should be making money or at least staying ahead of costs.

However he did have one warning. If an El Nino were to hit this year, which it currently has a 50% chance of doing, the entire market would change.

With Brazil being the number one sugar cane producer in the world, Mr McNeill said a continuing decline in their production would see emerging markets like India and China holding the key for the future.

The world's attitude towards sugar is also shifting, and it's something Mr McNeill said had been affecting the industry.

"There's a lot of pressure from government to reduce sugar consumption... and companies like Nestle and Coke (are) cutting the amount of sugar in their products,” he said.