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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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.

15/8/2023

Tate & Lyle Sugars

Tate & Lyle Sugars celebrates ProTerra re-certification

Tate & Lyle Sugars (TLS) are celebrating the fifth ProTerra re-certification for social responsibility and environmental sustainability for its supplier Belize Sugar Industries (BSI). BSI is part of ASR Group, and a supplier of raw cane sugar to TLS' Thames Refinery. Proterra is a widely recognised international standard focused on key issues including respecting human rights, good labour and agricultural practices, and protection of biodiversity. Every year, an independent auditor carries out the external audit against the ProTerra Standard. To achieve Proterra certification, a supplier must comply with 80% of all indicators, including all core indicators. In 2023, BSI achieved re-certification with no non-conformities.

11/8/2023

International Sugar Organization

ISO forecasts global sugar deficit of 2.12 million tons in 2023/24 - outlook for sugar prices is neutral-to-bullish

First detailed ISO assessment of 2023/24 balance reveals a deficit of 2.118 mln tonnes. Production increased to 174.839 mln tonnes, consumption to 176.957 mln tonnes. Global trade balance for 2023/24 sees deficit of 2.814 mln tonnes, exports down 3.96 mln tonnes. Reconciliation of 2022/23 season, which ends next month, has a surplus of 0.493 mln tonnes. Futures market prices weaker over the last three months, outlook is neutral-to-bullish.

11/8/2023

NFU Sugar

Tight sugar supplies in the UK

Sugar supplies available in the UK look well below normal levels. Reported prices in both the UK and EU remain very high. No raw sugar for refining has been imported yet in 2022/23 from any ACP/LDC origins with duty-free and tariff-free access according to HMRC data, suggesting a complete displacement of these traditional suppliers with world market raw sugar following the UK Government’s changes to trade policy in recent years. Average prices of white sugar imported into the UK have increased in line with reported EU average prices, which is likely to be reflective of white sugar prices sold in the UK. However, the average value of raw sugar imports has risen by far less (see figure 2), even accounting for CXL duties (c.£82/t) being paid on a proportion of this, implying a substantially larger than usual refining margin being made on the raw sugar that is being imported.

10/8/2023

Nieuw Oogst

Sugar beets in the Netherlands are generally healthy

The sugar manufacturer [Cosun] reports that beet growers are very alert to controlling foliar fungi. The agricultural service notes that many growers have carried out the first and now also the second spraying. According to Cosun Beet Company, the proper functioning of the warning system ensures that sugar beets are generally healthy in all growing areas. Few yellowing disease infections have been reported and the first cercospora spots were found later this year than in previous years. With a healthy leaf apparatus, the sugar beets can take full advantage of the growing month of August, the agricultural service expects. The sunny weather forecast for the coming weeks is very welcome, after the disappointing amount of sunshine in July. The advice to beet growers is to keep checking weekly for foliar fungi.

10/8/2023

CGB

France: Beet yellows: the worst should be avoided in 2023

Although it is premature to draw up a definitive assessment of jaundice for 2023, the observations made in the various beet growing regions indicate that the areas affected by jaundice, at this stage, are low to moderate at national level.

4/8/2023

farmer.pl

Poland: How big are sugar beet roots already? What polarity?

The sugar beet is now in the process of building root biomass. The future crop of roots and sugar will depend on weather conditions, precisely on the amount and distribution of rainfall and on the protection of the leaves. Südzucker Polska SA announced the first results of tests assessing the mass and quality of beetroot roots. The company's plantation areas are mainly located in the southern regions of Poland, where drought has not affected this year.n the 31st week of vegetation, the obtained results do not differ much from the norm. Root mass is similar to that obtained in the same period in the last two years. The mass of leaves is slightly higher than last year, but definitely lower than that determined in 2021. On average, beets have less than 15% of polarization. It also means that the sugar accumulation process is working properly. This is a higher result than that obtained in the same period in 2021, but almost 1.5% lower than the one set a year ago. Beet plantations in the area of operation of the sugar plant were characterized by a good and even stocking, estimated at 101.7 thousand on average. pcs./ha. The yield of roots and sugar calculated on the basis of these parameters was estimated at 44.5 dt/ha and 6.6 dt/ha, respectively.

2/8/2023

Tereos

Tereos Sugar Europe - 1st quarter results driven by higher sugar prices

The Tereos Sugar & Renewables Europe division’s results were mainly driven by higher sugar prices achieved through a targeted commercial strategy, as well as the successful implementation of the hedging strategy. Revenues for the Sugar and Renewables Europe division amounted to €647 million in Q1 23/24, up 25% at current exchange rates from €517 million in Q1 22/23. The division’s adjusted EBITDA reached €91 million in Q1 23/24, up 10% at current exchange rates from €83 million in the same period of FY 22/23. The division’s recurring EBIT amounted to €72 million in Q1 23/24, compared to €62 million in the same period of FY 22/23.

1/8/2023

L'Institut Technique de la Betterave

Fairly low virus yellows pressure so far in French sugar beet

The plots sown in March until the beginning of April developed symptoms from June 15, but with a severity that remained below 5% until the beginning of July. Over the past week, the severity of certain sites has increased, affecting up to 10% of the plot area. To date, only a very limited sector to the south-east of Chartres shows pronounced symptoms of jaundice, up to 40% of the area affected.

31/7/2023

European Commission

EU and the Philippines to start scoping exercise for a free trade agreement

Today, the EU and the Philippines announced their intention to explore the relaunch of negotiations for an ambitious, modern, and balanced free trade agreement (FTA) – with sustainability at its core. The EU and the Philippines will shortly kick off a bilateral ‘scoping process' to assess to which extent they share a mutual understanding on the future FTA. If this process concludes successfully, and after consultations with the Member States, the EU and the Philippines would be in a position to resume FTA negotiations.

31/7/2023

Market Screener

Sugar producers move to next instance after cartel fine

Following rulings by the Mannheim Regional Court in two pilot proceedings on the so-called sugar cartel, the Südzucker company is appealing. "We are not making any further statements; we are in ongoing proceedings," a spokesman announced in Mannheim on Monday. Earlier, the "Mannheimer Morgen" had reported. Inquiries to the Karlsruhe Higher Regional Court, which is responsible for the appeal, as well as to the two other affected manufacturers, Nordzucker of Braunschweig and Pfeifer & Langen (Diamant-Zucker), based in Koln, initially went unanswered. According to the rulings at the end of June, they are to pay millions in damages each to Nestlé Deutschland AG and Molkerei Alois Müller GmbH & Co. KG for collecting sugar prices that were too high following cartel agreements. According to information provided by the Regional Court at the time, around 40 cartel lawsuits filed by food and beverage manufacturers are pending in Mannheim alone. They are demanding a total of several hundred million euros. There were also lawsuits elsewhere, for example from dairies, bakery and delicatessen manufacturers.

28/7/2023

Euractiv

FAO official: EU shouldn’t sacrifice food output in sustainability’s name

Risking European agriculture productivity for sustainable farming goals may cause global tensions, as other countries cannot make up for the bloc’s reduced output, says a United Nations (UN) expert. The European Commission’s Green Deal, including the 2020 Farm to Fork strategy, seeks to establish the EU’s food system as a global sustainability standard. By 2030, the plan aims to halve pesticide use, cut fertiliser use by 20%, and dedicate a quarter of agricultural land to organic farming. However, concerns about potential impacts on agricultural productivity and the EU’s global leadership and trade relationships have arisen.

21/7/2023

Food For Mzansi

Schweet! Sugar industry hails Tongaat Hulett takeover

The South Africa Farmers Development Association (Safda) has welcomed the announcement that the entire sugar division of Tongaat Hulett Limited (THL) in South Africa has been acquired by Kagera Sugar Limited, a sugar manufacturer based in Tanzania.

18/7/2023

Strube D&S GmbH

Preliminary sugar beet tests in Germany undertaken by Strube are quite encouraging

This year, in accordance with a good tradition, Strube carried out the sampling of beet fields in Soester Börde on July 14th. This marks the 41st year of the time series. At 346 grams per beet, the result is slightly above the ten-year average (301 g) and follows the long-term trend, which also reflects breeding progress. We are therefore daring to make a high early forecast of 73-86 t/ha beet yield for the campaign result at the Lage plant, which forms the basis for the calculation. Our forecast is - admittedly - a very rough result, because it will be some time before the beet harvest. What will the weather be like before harvest? How do leaf diseases develop? And how will the growth turn out in autumn? Golden October or wet autumn? Lots of imponderables...

17/7/2023

Financial Times

EU seeks to seal Mercosur trade pact as summit highlights rift over Ukraine war

Brussels aims to boost Latin America ties but struggles to resolve environmental spat with Brazil and Argentina

15/7/2023

Bloomberg

Soaring Cost of Sugar Threatens to Push Up Prices Across the EU

Pests and drought could batter this season’s sugar beet crop. Sugar reserves are already low after last summer’s heatwave. European consumers may soon have to pay more for sweet treats as summer heatwaves push up the price of sugar. Destocking will be “the ultimate driver for EU sugar prices, which are incredibly sticky,” said Julian Price, an independent sugar consultant.

14/7/2023

Nestlé

Nestlé introduces breakthrough technology that reduces intrinsic sugars in key ingredients

Nestlé has introduced a versatile and cost-effective sugar reduction technology that can be applied across different product categories, with benefits beyond sugar reduction. It can also be used to produce low lactose and skimmed milk-based products, while reducing total sugars. Using an enzymatic process, it reduces intrinsic sugar in ingredients such as malt, milk, and fruit juices by up to 30%, with a minimal impact on taste and texture. The sugar-reduced ingredients are then used in recipes for various products. There is no need to add sweeteners or bulking agents to replace the volume of the eliminated sugar.

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