News and views

As I browse the web researching various topics concerning the EU and UK sugar markets, I've been bookmarking interesting weblinks. Some of these are news clippings, some are links to official documents, and some are interesting data sources.

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6/2/2024

BBC

EU Commission set to scrap plan to halve pesticide use after farmer protests

The head of the European Commission, Ursula von der Leyen, has announced plans to scrap a proposal halving pesticide use across the EU. The move is an apparent concession to farmers who have been protesting in many EU countries against regulations including the planned reduction in pesticide use. Ms von der Leyen said the proposal had become a "symbol of polarisation". The reversal still needs to be formally approved.

31/1/2024

farmer.pl with commentary from julianprice.com

The EC has approved the extension of duty-free trade with Ukraine until June 2025, but with limitations for poultry, eggs and sugar

The European Commission has approved the extension of duty-free trade with Ukraine until June 2025. The document includes restrictions on the import of poultry, eggs and sugar from Ukraine to the European Union. The reference period for setting import limits for sugar, eggs and poultry is to be the average of imports from 2022 and 2023. The number Eurostat for imports of sugar from Ukraine in 2022/23 (Oct/Sep) is 412,900 tonnes. On the other hand, if the Commission takes the average of the 2022 and 2023 calendar years, we get to 302,500 tonnes as the sugar “safeguard”.

31/1/2024

European Commission

EU reaffirms trade support for Ukraine and Moldova

The Commission has today proposed to renew the suspension of import duties and quotas on Ukrainian exports to the EU for another year, while reinforcing protection for sensitive EU agricultural products. This is done in line with EU commitments to support Ukraine for as long as it takes. These Autonomous Trade Measures (ATMs) have been in place since June 2022 and are a key pillar of the EU's unwavering support for Ukraine and its economy. The measures help alleviate the difficult situation faced by Ukrainian producers and exporters as a consequence of Russia's unprovoked and unjustified war of aggression. While the main objective of the ATMs is to support Ukraine, the measures are also mindful of EU farmers' and other stakeholders' sensitivities. To this end, and considering a significant increase in imports of some agricultural products from Ukraine to the EU in 2022 and 2023, the renewed ATMs contain a reinforced safeguard mechanism. This makes sure that quick remedial action can be taken in case of significant disruptions to the EU market, or to the markets of one or more Member States. For the most sensitive products – poultry, eggs and sugar – an emergency brake is foreseen which would stabilise imports at the average import volumes in 2022 and 2023. This means that if imports of these products were exceeding those volumes, tariffs would be reimposed to ensure that import volumes do not significantly exceed those of previous years. In parallel, the Commission proposes to renew by another year the suspension of all remaining duties on Moldovan imports in force since July 2022.

18/1/2024

gov.uk

Emergency pesticide authorisation to protect sugar beet crop conditionally approved

A neonicotinoid pesticide will be permitted for use on the 2024 sugar beet crop in England, only if there is a danger as evidenced by an independent prediction of virus incidence of 65% or more. Emergency Authorisations for pesticides are only granted for a limited period of time, in special circumstances where it is necessary because of a danger that cannot be contained by any other reasonable means, and the use is limited and controlled. Use of Cruiser SB will be permitted if levels of yellow virus are predicted by an independent model to exceed a particular threshold. If this threshold is not met, use of the product will not be permitted.

11/1/2024

Euractiv

French farmers’ union backs country-wide protests in Germany

The large-scale protests by German farmers, which have been raging across the country since Monday (8 January) and have caused serious traffic disruption, are an echo of a movement that took place in France in November, FNSEA director Arnaud Rousseau said on Wednesday. “These movements all have the same root cause: the growing gap between the reality of farmers’ practices on the ground and the administrative decisions centralised in Brussels, which are creating a revolt,” said Rousseau.

11/1/2024

EuroCommerce

The EU must swiftly implement the FTA with Mercosur, EU food industry associations insist

Twenty-three associations representing a wide array of European industries and other businesses based in the EU, ranging from manufacturing to food-related sectors, have written to the presidents of the European Parliament, the European Council and the European Commission, to call on the EU and Mercosur leaders to rapidly conclude the trade negotiations. In 2019, it was understood that the EU open a “supplementary quota” of 180,000 tonnes of sugar at zero tariff, a quota of 450,000 tonnes of industrial ethanol and 250,000 tonnes of fuel ethanol. It was understood that these quotas would be phased in over five years and that sugar quota may somehow be linked to EU sugar consumption.

10/1/2024

Kyiv Independent

Polish minister opposes extending EU free trade agreement with Ukraine

In a letter to the EU trade commissioner, Polish Agriculture Minister Czeslaw Siekierski said he is "fundamentally opposed" to a prolongation of the EU's free trade regime with Ukraine, the Polish radio RMF24 reported on Jan. 10, citing the obtained letter. Instead, he allegedly proposed "gradual, mutual liberalization, accompanied by gradual adjustment of Ukrainian agriculture to EU standards and law."

9/1/2024

Business Standard (India)

India, UK next round of talks for proposed free trade agreement

The next round of talks for the proposed Free Trade Agreement (FTA) between India and the UK will start here from Wednesday to resolve remaining issues and conclude the negotiations, an official said. The 13th round of negotiations for the proposed pact was held between September 18 and December 15. "The UK and India will continue to negotiate towards a comprehensive and ambitious FTA. The 14th round of negotiations will take place here from Wednesday," the official said. These negotiations would focus on complex issues in the areas of goods, services, and investment.

21/12/2023

Ukrinform

Kubrakov, Klimczak discuss lifting Poland’s border blockade

Ukrainian Deputy Prime Minister for Restoration - Minister for Communities, Territories and Infrastructure Development Oleksandr Kubrakov has met with Polish Infrastructure Minister Dariusz Klimczak. The relevant statement was made by Ukrainian Deputy Prime Minister for Restoration - Minister for Communities, Territories and Infrastructure Development Oleksandr Kubrakov on Facebook, an Ukrinform correspondent reports. “We held the first meeting with Poland’s newly appointed Infrastructure Minister Dariusz Klimczak in Warsaw. Several transport issues were discussed, but the main topic was lifting the border blockade. We presented the key figures and analytical data of freight traffic operations carried out by Ukrainian and Polish transport companies, which show that the problems that the protesters are talking about do not actually exist,” Kubrakov wrote.

20/12/2023

gov.uk

Notice to Traders 111/23 - Imports of Sugar under Statutory Instrument 2020 No. 1432

This notice is to inform you of the next round of sugar import quotas which are detailed in Annex 1. Details of the quantities available are also included in Annex 1. If this is your first application of the quota year you must provide evidence to prove that you have imported at least 25 tonnes of sugar.

18/12/2023

British Sugar

British Sugar and NFU Sugar agree contract for 2024/25 sugar beet crop

British Sugar and NFU Sugar have concluded negotiations and agreed a deal for the 2024/25 sugar beet contract. Both parties recognise that growers’ appetites for risk vary and choice is important, therefore growers can select from a number of options: a £40 per tonne fixed price (as per the 2023/24 price) a core price of £38 per tonne plus a market-linked bonus a Futures-linked option, for up to 35% of their contract yield protection at a £1 per tonne reduction on the core or fixed contract price The cash advance option, late delivery allowance, local premium, and frost insurance are the same as last year. This announcement comes after a lengthy negotiation, and both British Sugar and NFU Sugar have agreed that the process has not served the industry well. As part of the continued modernisation of our industry we have therefore agreed a shortened negotiation timeline which will deliver a final price and contract earlier in the year.

14/12/2023

European Parliament

Corporate sustainability due diligence: Council and Parliament strike deal

The Council and the European Parliament today reached a provisional deal on the corporate sustainability due diligence directive (CSDDD)

14/12/2023

Euractiv

EU is ‘driving without a map’ on biofuels policy, auditors find

The EU’s complex policy approach to biofuels lacks a long-term outlook and risks undermining the bloc’s transport decarbonisation targets, an analysis by the European Court of Auditors (ECA) has found. The ECA, an independent watchdog, examined the EU’s support for biofuels to cut transport emissions, and found that the ever-shifting web of policies have led to an unclear road ahead for the fuels.

14/12/2023

S&P Global Commodity Insights

New biofuel data triggers fresh fraud concerns over EU imports

Feedstocks certification spike in Italy, Malta flagged as suspect. Europe's 80% import reliance for feedstock reduces transparency: T&E Stakeholders urge tougher controls, warn of price pressure. Data showing an apparent spike in European supplies of used cooking oil -- a key feedstock for biodiesel and sustainable aviation fuel -- has reignited concerns over widespread customs fraud allowing less-sustainable palm oil to be passed off as a waste-based source of biomass in Europe.

14/12/2023

The Critic

The sugar tax has not worked as intended: A bitter pill for public health

In March 2021, a study was published in BMJ Open claiming that the UK sugar tax had led to a 10 per cent reduction in the amount of sugar consumed in soft drinks. Although one of its authors admitted that a decline of this magnitude “might sound modest”, it was presented as a win for public health. The preposterous pressure group Action on Sugar called for the tax to be “extended to other categories” and the 10 per cent figure soon found its way into the National Food Strategy and several World Health Organisation reports. Last week the study was retracted, along with an editorial titled “UK sugar tax hits the sweet spot” that had been published in the British Medical Journal claiming that the tax was “working exactly as intended”. It turns out that tax has not been not working exactly as intended. In a new version of the study, the authors estimate that the decline in sugar consumption from soft drinks was just 2.7 per cent, barely a quarter of the original figure, and that in contrast to the original study, which claimed that there had been no change in soft drink sales, the volume of soft drinks rose by 2.6 per cent.

13/12/2023

News 24 (South Africa)

amaBhungane | ANALYSIS: Who is behind the Tongaat Hulett bid battle?

The Vision and RGS consortiums are battling it out to buy the bank debt that would give them control over Tongaat Hulett. Vision includes a financier who spent a chunk of his career in the service of three notorious Kazakh oligarchs known as "The Trio"; it also includes a company implicated in Pakistan’s so-called "sugar mafia" cartel scandal. Both deny any wrongdoing. RGS is part of the Mozambican Gulamo group, previously called out for its closeness to the ruling Frelimo party. Things have been sour for sugar giant Tongaat Hulett since 2019, when a new management team uncovered accounting failures and alleged fraud that led to a R12 billion reversal in the company's valuation. The criminal trial of key former directors is yet to get properly under way.

8/12/2023

City AM

London-based Marex files for New York IPO in huge blow to the City

London-based commodities broker Marex has filed for an initial public offering (IPO) in New York in a huge blow to the City after a drought of floats this year. Marex confirmed today it has submitted a filing to the US Securities and Exchange Commission for an IPO in New York next year, meaning one of London’s top private financial services firms will opt to list its shares across the Atlantic. Marex, one of the world’s largest privately-owned commodities brokers and clearing houses, reported a 53 per cent surge in adjusted pre-tax operating profit to $121.7m (£97.3m) in April, as net revenue jumped 29 per cent to $701m. The record results come after the firm snapped up ED&F Man Capital Markets last year to boost its metals business and expand in fixed income and equities. The deal saw the firm boost its client funds by 139 per cent to $12bn, with $4.5bn added through the takeover.

7/12/2023

European Commission

Commission fines ethanol producer Lantmännen €47.7 million over ethanol benchmarks cartel

The Commission has fined Lantmännen ek för and its subsidiary Lantmännen Biorefineries AB (formerly named Lantmännen Agroetanol AB) (together ‘Lantmännen') around €47.7 million for participating in a cartel concerning the wholesale price formation mechanism for ethanol in Europe. Lantmännen is the largest ethanol producer in the Nordic region and referenced most of its ethanol sales contracts to the monthly average of Platts' ethanol benchmarks during the infringement period. Therefore, the level of Platts' ethanol benchmarks could directly influence the revenues that Lantmännen received from its ethanol sales during that period.

6/12/2023

Tereos

Tereos Sugar and Renewables Europe revenues rose 22% in H1 2023/24 as sugar sales reach > 860 €/t in Europe

Revenues for the Sugar and Renewables Europe division amounted to €1,298 million in H1 23/24, up 22% at current exchange rates from €1,062 million in H1 22/23. The division's adjusted EBITDA reached €164 million in H1 23/24, up 5% at current exchange rates from €156 million in H1 22/23. The division's recurring EBIT was €127 million in H1 23/24, versus €113 million in H1 22/23. The division's results were driven by the strong performance of our commercial and hedging strategies. For the 2023/24 campaign, the annual B2B sugar contracting campaign was concluded at an average price above 860 per tonne in Europe.

5/12/2023

Tassos Haniotis via LinkedIn

EU agriculture in search of a credible baseline

From energy prices to food inflation, and from geostrategic tensions to coups d’état and outright wars, the wider public has been overwhelmed with bad news flooding the media coverage of commodity market upheavals. Central among them is the extent of food inflation, whose level and especially whose path is in deep contrast with anything we have seen in the past. With several studies ongoing on the various aspects of the green transition of EU’s agriculture, it is of paramount importance that their starting point is driven by baselines whose main underlying assumptions are common. This is also essential if synergies between economic and physical models are to lead to better coordinated analyses that are not based on nice graphs, where everything is linked to everything, but on estimated parameters that provide solid quantitative assessment of such links.

4/12/2023

Euractiv

European Commission admits there is “some risk” that imports from Ukraine are driving down prices for sugar

Ukraine grain row extends to sugar, poultry imports to EU. Amid a surge in Ukrainian exports to the EU, the European Commission insists trade is flowing well but admits there is “some risk” of imports driving down prices and threatening local production for poultry, eggs and sugar.

1/12/2023

ePure

Renewable ethanol biorefineries support European farmers and contribute to food supplies

European renewable ethanol is a domestic solution to address Europe’s dependence on fossil fuels. In 2022, bioethanol from ePURE members reduced greenhouse gas emissions by more than 78% compared to fossil fuels – a figure that only rises year by year. Most cars on the road today can effortlessly make the switch to ethanol-blended fuels – like E10 (which contains up to 10% ethanol) – and so can most petrol stations. If all petrol cars in the EU were to switch to E10 fuel today, the impact on CO2 emissions would be equivalent to taking 82 million cars off the road and avoiding 42 million barrels of oil imports. Existing carbon emissions are offset: the CO2 released from the use of ethanol in vehicles is offset by the CO2 captured by the crops grown for ethanol production. In 2022, European biorefineries captured 1.1 million tonnes of CO2.

30/11/2023

Sucden

Sucden completes acquisition of a minority stake in Moroccan sugar business Cosumar

On November 30th, Sucden and a group of Moroccan institutional investors (MCMA, MAMDA, CIMR, RCAR) have purchased Wilmar’s 30.05% stake (of which 10% for Sucden) in Moroccan sugar producer Cosumar. Sucden and Cosumar intend to develop further synergies, focusing on marketing Moroccan sugar in the world market. Serge Varsano, Chairman of the Management Board of Sucden, commented: 'We are very pleased to become a shareholder of Cosumar, the sole sugar producer in Morocco, where our company started its sugar business over 70 years ago. Sucden's expertise and footprint in the world sugar market will benefit Cosumar's plans to expand its international sugar activities.'

29/11/2023

NFU Sugar

NFU Sugar welcomes the UK government’s decision not to expand the ATQ (Autonomous Tariff Quota) for raw cane sugar

NFU Sugar has welcomed the government’s decision not to expand the ATQ (Autonomous Tariff Quota) for raw cane sugar following a snap consultation in September. Introduced in 2021, the ATQ allows tariff-free access for 260,000t of raw cane sugar into the UK from anywhere in the world. The NFU responded to September’s extremely short (two-week) government consultation, rejecting the concept that expansion of the ATQ might reduce current high sugar prices and so help alleviate inflationary pressure on the cost of a basket of consumer goods. It also met with Defra, the Department for Business and Trade, and Treasury officials. On 15 November, the government announced that it would not be expanding the ATQ for the remainder of 2023. Since the introduction of the ATQ however, imports of raw cane sugar from ACP/LDC producers have fallen year-on-year, contracting by a total of 73%, while during the same period imports from Brazil have increased by 206%. Just 16,000t of raw sugar for refining has been imported from ACP/LDC countries with duty-free and tariff-free access in 2023 according to HMRC data, suggesting a near complete displacement of these traditional suppliers with world market raw sugar. The raw sugar cane ATQ, regardless of its size, constitutes a tangible exclusion of the developing economies the UK Government claims it is committed to supporting.

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