News and views

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15/11/2023

Wirtschaftliche Vereinigung Zucker

Sugar industry slightly adjusts production estimate and looks to Brussels with concern: SUR needs to be changed significantly

The future of the sugar industry will be decided in Brussels next week. Factory employees and beet growers are looking with great concern at the EU Parliament's vote on the regulation on the sustainable use of plant protection products (SUR) and are calling for decisive adjustments. The corresponding Commission proposal currently provides for a blanket ban on plant protection products in sensitive areas. The Environment Committee's proposal to only allow ecological or so-called low-risk pesticides is also unacceptable. The regulation would also affect large areas in the catchment area of sugar factories. Conventional beet cultivation would no longer be possible here. As a result, sugar factories could no longer operate at full capacity and, in the worst case scenario, would have to close. The chairmen of the general works councils of Südzucker, Nordzucker and Pfeifer & Langen point out the consequences: “Our plants in Germany, with their approximately 5,700 employees, are a very attractive employer in their respective regions and create over 50,000 additional jobs in upstream and downstream areas. We are missing beets because farmers are giving up cultivation and factories are closing. Then the sugar comes from overseas. This cannot be the solution for sustainable food security in Europe.”

10/11/2023

Agriculture Strategies

Speculation on agricultural markets: strengthening the European framework

Futures markets have become an almost essential part of the marketing strategy of farmers and their cooperatives, and they also exist in order to attract financial organizations, which provide the necessary liquidity. But while speculative practices contribute to increased price volatility, the profits they generate in times of crisis attract criticism, as in a recent report from CCFD-Terre Solidaire and Foodwatch, who judge the current[1] regulations to be insufficient in terms of transparency. The Council and Parliament agreed on 29 June to revise the regulation in force. Sufficient provisions to limit excessive price volatility?

9/11/2023

Prof. Alan Matthews (via X)

UK Govt proposes statutory instrument revoking basic payments for farmers in England from next January

UK Govt proposes statutory instrument revoking basic payments for farmers in England from next January and providing for delinked payments from 2024 to 2027 which can be paid without a requirement to have eligible land. https://www.legislation.gov.uk/ukdsi/2023/9780348253344/contents

8/11/2023

NFU Sugar

Sugar beet negotiation: NFU Sugar responds to Defra statement

NFU Sugar has clarified its response to a statement issued by Defra regarding the 2024/25 sugar beet contract negotiation. NFU Sugar welcomes the clear direction from government that negotiations with British Sugar to set a price for sugar beet this year should resume. You can read Defra's statement in full at: GOV.UK | Update on beet sugar negotiations. The government has stated explicitly “that there is a well-established process in place to agree the sugar beet price”. Defra adds: “It is very important that all parties involved now continue to follow that process and reach a mutually acceptable outcome.”

2/11/2023

Tereos

Tereos announces the sale of its UK production site to T&L Sugars Limited

Tereos announces the pending sale of the Tereos UK and Ireland (TUKI) site in Normanton, West Yorkshire, and its business-to-consumer (B2C) activities to UK based T&L Sugars Limited (TLS). The Tereos UK facility packs and distributes white granulated, baking and specialty sugars to food retailers and wholesalers in the UK, under the “Whitworths Sugar” brand and private label brands. The transaction only concerns B2C activities; Tereos will keep the industrial B2B activities which will continue as TUKI. TLS imports raw cane sugar and refines it into sugar for consumption at its refinery in London. This sugar is then supplied to industrial customers or packed and distributed to customers in the B2C channel under British private labels, as well as under the “Tate & Lyle” brand. Tereos is very pleased that TLS is acquiring the UK site and securing the future for all the experienced employees, the factory and storage facilities. It will enable the B2C market in the UK to maintain the same level of quality and services with a warranty of supply. Finalisation of the transaction will take place upon completion of the UK Competition and Markets Authority approval process.

1/11/2023

British Sugar

UK 2024/25 Sugar Beet Contract – A competitive core price with added potential for sharing sugar market upside

British Sugar has today contacted its 2,300 sugar beet growers with details of its contract offer for the 2024-25 growing season. It is a contract offer built around choice and flexibility, including: Security of a core £38/t price for beet delivered; Added potential with a market-linked bonus; which would deliver over £40/t in today’s sugar market; Peace of mind if growers choose our Yield Protection contract for a core price of £37/t; Easing growers’ cashflow with our unique cash advance.

30/10/2023

Sydney Morning Herald

Australia: ‘End game’ trade deal with EU collapses as both sides walk away

A last-ditch attempt to secure a free trade agreement with the European Union over better access for Australian meat and protections for continental goods has fallen apart before the “end game” negotiations could start, a move that will set any deal with the bloc back years.

28/10/2023

Action on Sugar

Cap UK’s sugar supply to fight obesity, say campaigners

According to a delusional report published by Action on Sugar, the UK faces rising ‘sugar pollution’: the impacts on public health and the environment of producing, importing and consuming too much sugar. The UK sugar supply is equivalent to over two-and-a-half times the amount needed to meet the population’s maximum recommended intake, driving tooth decay which hospitalises over 600 children a week, and contributing to levels of obesity that cost the NHS around £6.5 billion a year.

24/10/2023

Terre-net

Cristal Union launches a paid agroecological approach

The Cristal Union cooperative announces the launch of RegAg, an agroecological approach for its members. The efforts of the latter engaged in the implementation of agroecological and low carbon practices will be remunerated, from this 2023 harvest, by the payment of a specific bonus.

9/10/2023

European Commission

EU short-term outlook - sugar production expected to recover

2023/24 EU sugar production is forecast at 15.6 million tonnes (close to the 5-year average) as sugar beet planting area, beet yields, and sugar content are expected to increase. EU production of isoglucose, which was estimated to fall by 24% in 2022/23 due to the consequences of the 2022 summer drought, high feedstock, and input costs in main EU producing countries, is expected to partially recover in 2023/24. Thanks to the production increase, EU availability is higher. Therefore, EU sugar imports are forecast to decline to 1.9 million t in 2023/24 (25% below the estimated post-quota record of 2.5 million t imported in 2022/23). Imports should nevertheless stay above the 5-year average thanks to high EU sugar prices and increased availability of Ukrainian sugar, while EU exports compared to 2022/23 should increase 29% to 0.75 million t. Total EU consumption of sugar in 2023/24 is expected to remain resilient to high prices and relatively stable compared to 2022/23. It should continue to be supported by strong EU exports of sugar in processed products, while industrial use of sugar is due to partly recover. Ending stocks of sugar, which are estimated at 1.4 million t in 2022/23 (-9.6% year-onyear), are expected to be at a similar level also at the end of 2023/24 season.

4/10/2023

Wirtschaftliche Vereinigung Zucker

Germany: Second harvest and production estimate 2023

The Sugar Economic Association (WVZ) published its second harvest and production estimate for 2023 today. According to this, sugar beets are grown on an area of around 365,000 hectares in Germany. The estimated sugar beet yield is 79.2 t/ha. For the coming campaign, the WVZ expects a beet delivery of around 29 million t. The amount of sugar produced from this is estimated at around 4.4 million tonnes.

29/9/2023

European Commission

Carbon Border Adjustment Mechanism (CBAM) starts to apply in its transitional phase

On 1 October, the Carbon Border Adjustment Mechanism (CBAM) will enter into application in its transitional phase. CBAM is the EU's landmark tool to fight carbon leakage and one of the central pillars of the EU's ambitious Fit for 55 Agenda. It will equalise the price of carbon between domestic products and imports. This will ensure that the EU's climate policies are not undermined by production relocating to countries with less ambitious green standards or by the replacement of EU products by more carbon-intensive imports. CBAM is a WTO-compatible measure that encourages global industry to embrace greener and more sustainable technologies. In its transitional phase, CBAM will only apply to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. EU importers of those goods will have to report on the volume of their imports and the greenhouse gas (GHG) emissions embedded during their production, but without paying any financial adjustment at this stage.

25/9/2023

Reuters

EU's bid to save bees stings sugar beet farmers

Europe's sugar beet growers are turning away from the crop in a move that could drive soaring prices even higher, as the EU's environmental rules clash with its bid to stem food inflation and secure supplies. Farmers are switching crops after the European Union's top court ruled in January they can no longer be granted exemptions to a ban on so-called neonics - insecticides which protect against diseases like virus yellows in sugar beet but are toxic to bees and other pollinators vital to food production.

22/9/2023

FoodTechBiz via Twitter

British Sugar contracts with Sidel to build a new packaging centre

Sidel has been appointed to install a highly flexible end-of-line turnkey solution for British Sugar, the leading producer of sugar for the British and Irish food and beverage markets. The holistic and tailor-made solution will support the British company, a subsidiary of Associated British Foods plc that works with 2,300 growers, to meet market requirements as well as retailer expectations.With increasing consumer demands and escalating sugar sales, British Sugar processes around 8 million tonnes of sugar beet to produce up to 1.2 million tonnes of sugar annually. The company required a large-scale operations replacement for its end-of-line system that was over 38 years old, including a brand-new solution with a high level of multiple SKU complexity management and automation.

22/9/2023

Diario de León

Acor achieves €25 million profit due to “management” and the price of sugar

The Valladolid cooperative Acor achieved profits before taxes of 24,956,977 euros in the 2022-2023 financial year, a "historic" figure, in the words of the president of the company, Jesús Posadas, who specified that this result has tripled the already "magnificent" figures from the previous year, when they reached 8.04 million euros, and have multiplied by ten those of the 2020-2021 campaign.

21/9/2023

WTO

Ukraine initiates WTO dispute complaints against Hungary, Poland and Slovak Republic

Ukraine has requested WTO dispute consultations with Hungary, Poland and the Slovak Republic regarding the continued imposition of import bans by the three countries on certain agricultural products, including grains, from Ukraine. The request was circulated to WTO members on 21 September. Ukraine claims the measures imposed by Hungary, Poland and the Slovak Republic appear to be inconsistent with various provisions under the WTO's General Agreement on Tariffs and Trade 1994 and the Agreement on Agriculture. Further information is available in documents WT/DS619/1, WT/DS620/1 and WT/DS621/1. The goods at issue were: cereals, sugar, dried fodder, seeds, hops, flax and hemp, fruit and vegetables, processed fruit and vegetable products, wine, beef and veal, milk and milk products, pork, mutton and goat meat, eggs, poultry meat, ethyl alcohol of agricultural origin, bee products, and other products.

20/9/2023

Cosun Beet Company

Expected yield in the Netherlands is good

As of today, all Cosun Beet Company factories are again active in the processing of sugar beets. The factories in Dinteloord and Hoogkerk (Groningen) received the first beets this morning. In our German factory in Anklam, processing started on September 6. This moment means the start of much more than just sugar production. The expected yield is better than previous estimates. This is 84 tons of beets per hectare with a sugar yield of 14 tons per hectare, which is slightly higher than the five-year average, but lower than last year. After a cold spring, a somewhat wet summer, but sufficient hours of sunshine in September, the beet fields are currently in good shape. In addition, there was limited damage this year due to yellowing disease and to date also due to leaf fungi. The expectation for the total amount of sugar to be produced is slightly larger than in 2022.

18/9/2023

europa.eu

Safeguard measures for Ukrainian imports expire as market distortions are resolved

The European Agriculture Council reiterated on 18 September its full support for Ukraine, and the Commission informed member states about the expiry, on 15 September 2023, of the safeguard measures for Ukrainian imports that applied in the five frontline member states. The Commission explained that thanks to the work of the coordination platform with Ukraine and the solidarity lanes, the market distortions in these five countries had been resolved. The majority of member states welcomed the expiry of the safeguard measures, once it was noted that market disturbances had normalised, and considering Ukraine's commitment to introduce measures to avoid future market distortions. Additionally, they highlighted the importance of safeguarding the integrity of the single market. The Council concluded that it is necessary to continue monitoring the situation.

15/9/2023

ePure

EU takes action to monitor surge of ethanol imports threatening European industry

The European Commission announced today it would introduce retroactive surveillance measures on imports of renewable ethanol for fuel from several countries, taking a vital step towards preventing further injury to a strategically important EU industry. The decision allows a close three-year monitoring of the volume of fuel ethanol imports into the Union, which will facilitate a prompt and effective reaction in case the threat related to increased imports materialises. Imports of ethanol for all uses to the EU increased by more than 80% between 2021 and 2022, with the most significant amounts coming from Brazil, the U.S., the U.K. and Peru.

14/9/2023

gov.uk

UK calls for written submissions concerning the ATQ for raw sugar

The UK implemented an ATQ on raw cane sugar on 1 January 2021. Following a subsequent review of all UK ATQs in 2021, the Government maintained the volume level of the ATQ at 260,000 tonnes. In the context of domestic supply challenges and significant increases in sugar prices, the government would now welcome information from stakeholders to understand any issues this has caused in the UK sugar market and potential mitigations that the government could take.

28/8/2023

Australian Financial Review

Finasucre considering a sale of Australia's Bundaberg Sugar

Street Talk can reveal the owners of one of the country's best-known supermarket brands, Bundaberg Sugar, have hired two banks to run a buyer search in what could be one of the biggest deals of the year. Belgian-based sugar giant Finasucre, which has controlled the Queensland business for more than two decades, is understood to be considering a sale, tapping Lazard Australia's Campbell Ray and Kidder Williams' Tim Faulkner to find a buyer. The business is expected to generate earnings before interest, tax, depreciation and amortisation of around $25 million next year, and is slated to fetch a value around the $600 million mark.

25/8/2023

RPA

UK RPA opens import quotas for "CXL" sugar, India, Serbia and others

The UK's Rural Payment Agency (RPA) has published an invitation to apply for licences to import sugar under the so-called "CXL" quotas from Brazil, "Erga Omnes", India, Northern Macedonia, Albania and Serbia. Applications for these import licences may be submitted between 1 September 2023 and 5pm on 7 September 2023. The Notice to Traders gives details of the terms and conditions which traders must comply with. For further guidance, details of earlier accepted applications of EU and UK sugar import licences are available here: https://www.julianprice.com/flows/trqs

24/8/2023

Refined Sugar Association via LinkedIn

SAL and RSA celebrate the retirement of Mr Nigel Durham

The Sugar Association of London and the Refined Sugar Association celebrated the service of Mr. Nigel Durham, who worked at the Refined Sugar Association from April 2000, first as Assistant Secretary to Mr. Derek Moon, and then as Secretary from December 2005. Nigel retired in July 2020. Nigel was presented with a Silver Sugar Shaker, dated from 1910, by the Chairmen, Councils and Permanent Staff of both the SAL and RSA.

23/8/2023

UNICA

Ethanol Parliamentary Front will strengthen environmental agenda

Ethanol gains prominence in the energy agenda of the National Congress, with the launch of the Ethanol Parliamentary Front, this Wednesday (23rd), in Brasília. Chaired by federal deputy Zé Vitor (PL/MG), the Front involves more than a hundred parliamentarians interested in valuing biofThe new Parliamentary Front will have the challenge of expanding the advantages of ethanol as a clean and environmentally friendly source of energy, valuing a national product that reduces CO2 emissions by up to 90% compared to gasoline. In addition, the sector generates more than 2.1 million direct and indirect jobs throughout the production chain.uel and its contribution to the decarbonization of the national fleet.

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