The EU Sugar Market Post 2017
April 2014
MECAS(14)05
International Sugar Organization
ISO
The EU Sugar Market Post 2017
MECAS(14)05
APRIL 2014
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
29 April 2014
Abstract
This paper takes stock of major developments in the EU sugar industry over the past
few years with the view of investigating the possible implications of the 2017 Reform of
its Sugar Regime and its impact on the world market. This paper has three main
objectives: first, to examine EU sugar production, consumption and trade and the major
developments/industry characteristics across the 28 countries of the bloc in the wake of
the 2006 Reform of the EU Sugar Regime. Second, to investigate the implications of the
recently announced 2017 Reform to the key stakeholders, particularly EU beet/sugar
producers, and to present recent developments on the status of the Economic
Partnership Agreements with ACP countries and other Free Trade Agreements. Finally,
the paper presents two scenarios on how beet sugar production is likely to respond, by
taking into account different levels of world market prices and import parity prices. What
implications will a higher or lower level of world sugar prices, amid the threat of
competition from isoglucose, have for beet sugar production in the EU and imports from
preferential sugar trade partners of the LDC/ACP group as well as others? Will the EU
turn into a net sugar exporter after the 2017 Reform?
The paper concludes it is unlikely that volumes greater than 3.0 mln tonnes will be
imported in any given year by a production quota-free EU-28 bloc from 2017 onwards.
Sugar production is forecast as ranging from 15.8 to 19 mln tonnes, white value, in
2017/18, while sugar consumption may fall from the current level of 18 mln tonnes due
to the likely increased penetration of isoglucose in the bloc’s soft drink industry.
Projected sugar imports range from a low of 1.5 mln tonnes to a high of 3.0 mln tonnes,
with the EU in one of the two scenarios becoming a net sugar exporter (2.5 mln tonnes
of exports as against 1.5 mln tonnes of imports). As a result, the EU may lose its status
as one of the world’s largest sugar importers (it was the largest between 2008 and
2011).
Part 1 of the paper presents the characteristics of the EU sugar industry, its role in the
world market since the 2006 Reform of the Sugar Regime, as well as the major
developments in domestic beet sugar production, consumption, raw sugar refining,
imports and exports over recent years. Part 1 also describes the bloc’s major
preferential trade agreements, especially the progress of Economic Partnership
Agreements with countries of the ACP group, EBA arrangements, the CXL imports and
other Free Trade Agreements. Part 2 of the paper assesses the key pillars of the
upcoming 2017 Reform of the Sugar Regime, with a focus on the threat that the
abolition of isoglucose (HFS) quota can bring to the EU sugar market. Part 3 presents
the ISO forecasts for EU sugar production, consumption, imports and exports Post 2017.
International Sugar Organization
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Organization
One Canada Square
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INDEXES
The EU Sugar Market Post 2017
TABLE OF CONTENTS
IV
INDEX OF TABLES
INDEX OF BOXES
INDEX OF FIGURES
GLOSSARY OF TERMS AND ACRONYMS
INTRODUCTION
IV
IV
IV
V
1
PART 1: DEVELOPMENTS SINCE THE 2006 EU SUGAR
REGIME REFORM
THE EU SUGAR BALANCE
THE 2006 REFORM OF THE EU SUGAR REGIME
SUGAR PRODUCTION
SUGAR CONSUMPTION
SUGAR TRADE
NON-LDC ACP SUGAR IMPORTS
TRANSITIONING FROM ACP SUGAR PROTOCOL TO EPA
Caribbean EPA
Pacific EPA
West Africa EPA
Central Africa EPA
Southern African Development Community (SADC) EPA
Eastern and Southern Africa (ESA) EPA
East African Community (EAC) EPA
SUGAR IMPORTS UNDER EVERYTHING-BUT-ARMS (EBA) INITIATIVE
CXL IMPORTS
SPECIAL ARRANGEMENTS
MFN IMPORTS
SUGAR IMPORTS FOR THE INDUSTRIAL/CHEMICAL SECTOR
THE NEW FREE TRADE AGREEMENTS
General Enquiries:
00 44 20 7513 1144
Publications:
00 44 20 7715 9436
E-mail:
[email protected]
Website:
http://www.isosugar.org
With Central America
With Colombia and Peru
Other Potential FTAs
SUGAR REFINING
EXCEPTIONAL MEASURES
PRICE DEVELOPMENTS
PART 2: THE 2017 REFORM
THE NEW LEGAL PROVISIONS IN A NUTSHELL
ISOGLUCOSE: HOW BIG A THREAT?
PROSPECTS FOR ETHANOL FOR THE EU-28
2
2
2
3
9
10
12
13
15
15
15
15
15
15
15
16
17
18
19
19
19
19
20
20
20
23
26
28
28
29
33
PART 3: PRICE SCENARIOS AND IMPACT ON THE WORLD
34
TRADE
PREVIOUS IMPACT ASSESSMENT STUDIES
ISO ASSESSMENT AND FORECAST
CONCLUSIONS
International Sugar Organization
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36
39
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Indexes
Index of Tables
Table 1 – EU Production, Imports, Exports, Consumption and Stocks, 2005-2012
(Tonnes – Raw Value)
Table 2 – Annual Sugar Production Quotas by Member State, 2003-2014 (Thousand
Tonnes – White Value)
Table 3 – Selected Indicators of the EU's Sugar Industry
Table 4 – Total Sugar Imports by the EU from Non-LDC ACP Countries (Tonnes – Raw
Value)
Table 5 – EPA Regions
Table 6 – Total Sugar Imports by the EU from EBA Countries (Tonnes – Raw Value)
Table 7 – Total Sugar Imports by the EU from CXL Countries (Thousand Tonnes – Raw
Value)
Table 8 – Total Sugar Imports by the EU from Balkan Countries (Thousand Tonnes –
Raw Value)
Table 9 – Industrial Import Quota Available and Allocated (Tonnes)
Table 10 – Central America – EU Tariff Quotas (Thousand Tonnes – Raw Value)
Table 11 – Refineries and Refining Capacity by Member State in 2013 Divided Into FullTime and Non-Full-Time Refineries (Tonnes – Raw Sugar)
Table 12 – Import Tonnages Entering Under Exceptional Measures
Table 13 – Commission Exceptional Measures Since MY 2010/2011 (October/September)
Table 14 – Isoglucose Quotas by Member State (Tonnes – Dry Matter)
Table 15 – Number of Isoglucose Production Sites by Companies and Location
Table 16 – Indicative Gasoline and Fuel Ethanol Use in the EU 28 in 2020 (Mln Litres)
Table 17 – Scenario 1 – EU 28 Sugar Balance (Mln Tonnes)
Table 18 – Scenario 2 – EU 28 Sugar Balance (Mln Tonnes)
Table 19 – Average Scenario – EU 28 Sugar Balance (Mln Tonnes)
Index of Boxes
Box 1 – Key Policy Changes of the 2006 EU Sugar Reform
Box 2 – Climate Change and EU Sugar Beet Production
Box 3 – Prospects For Bioplastics Production From Beet
Index of Figures
Fig. 1 – Sugar Production Quotas by Groups of Countries and Share in EU Total,
2011/2012-2013/2014
Fig. 2 – Yield Developments in The EU, 1992-2012
Fig. 3 – Sugar Production and Consumption in the EU – 2002-2012 (Mln Tonnes – Raw
Value)
Fig. 4 – EU Imports and Exports of Sugar, 2002-2012 (Thousand Tonnes – Raw Value)
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Fig. 5 – EU Imports of White and Raw Sugar, 2002-2012 (Thousand Tonnes – Raw
Value)
Fig. 6 – EU Quota White Sugar Price Versus ISO White Sugar Price Index
Fig. 7 – EU Domestic Quota Sugar Prices Versus Duty-Free Import Parity Price
Fig. 8 – EU Domestic Quota Sugar Prices Versus CXL Sugar Import Parity Price
Fig. 9 – Sugar/Grain Balances
Fig. 10 – EU and Import Parity Prices: Lower World Price Scenario
Fig. 11 – EU and Import Parity Prices: Higher World Price Scenario
Glossary of Terms and Acronyms
ACP
AMSP
CAP
CARIFORUM
CEMAC
CETA
CMO
DG
EAC
EBA
EC
ECOWAS
EPA
ESA
ESI Funds
FAO
FDI
GHG
GM
GSP
HFS
ILO
IPCC
LDC
M&A
MFN
OECD
RED
SADC
STP
TRQ
WTO
African, Caribbean and Pacific Group of States
Accompanying Measures for Sugar Protocol
Common Agricultural Policy
Caribbean Forum
Economic and Monetary Community of Central Africa
Comprehensive Economic and Trade Agreement
Common Market Organisation
Directorate-General of the European Commission
East African Community
Everything But Arms Initiative
European Commission
Economic Community of West African States
Economic Partnership Agreement
Eastern and Southern Africa
European Structural and Investment Funds
Food and Agriculture Organization of the United Nations
Foreign Direct Investment
Greenhouse Gas
Genetically Modified
Generalised Scheme of Preferences
High Fructose Syrup
International Labour Organization
Intergovernmental Panel on Climate Change
Least Developed Countries
Mergers and Acquisitions
Most Favoured Nations
Organisation for Economic Co-operation and Development
Renewable Energy Directive
Southern African Development Community
São Tomé and Príncipe
Tariff-Rate Quota
World Trade Organization
International Sugar Organization
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Introduction
This study monitors recent developments in the EU sugar industry with the view of
investigating the possible implications of the 2017 Reform of its Sugar Regime and its
impact on the world market.
This paper has three main objectives: first, to take stock of EU sugar production,
consumption and trade and the major developments/industry characteristics across the
28 countries of the bloc in the wake of the 2006 Reform of the EU Sugar Regime.
Second, to investigate the implications of the recently announced 2017 Reform to the
key stakeholders, particularly EU beet/sugar producers, and to present recent
developments on the status of the Economic Partnership Agreements with ACP countries
and other Free Trade Agreements. Finally, the paper presents two scenarios on how
beet sugar production is likely to respond, by taking into account different levels of
world market prices and import parity prices. What implications will a higher or lower
level of world sugar prices, amid the threat of competition from isoglucose, have for
beet sugar production in the EU and imports from preferential sugar trade partners of
the LDC/ACP group as well as others? Will the EU turn into a net sugar exporter after
the 2017 Reform?
The 2006 Reform of the EU Sugar Regime, which eliminated domestic sugar price
intervention and export refunds, already led the bloc to cut production by some 5 mln
tonnes. As a result, the EU is now one of the world’s largest sugar importers. Between
2008 and 2011, the bloc was indisputably the world’s largest importer of sugar, being
overtaken by China only in 2012. In this period, the EU was able to not only absorb
greater quantities of sugar imports from preferential partners in the developing markets
of the ACP (African, Caribbean, and Pacific) as well as the LDC (least developed
countries), but also increasing volumes of sugar coming from other preferential trade
agreements. At the same time, the EU has become a leaner and more efficient sugar
producer. Sugar production is now concentrated in fewer groups, activities of M&A and
FDI are as high as ever and investment in higher yields continues in addition to the
gains bestowed on the sector by global warming.
Crucially, the Reform of the EU Sugar Regime in 2017 will abolish sugar and isoglucose
production quotas, as well as minimum beet prices altogether, leading to further market
deregulation in the bloc. Sugar output in the EU is likely to become more responsive to
the level of world prices: higher (lower) world sugar prices could render sugar imports
less (more) attractive vis-à-vis domestically produced sugar in the EU and even provide
producers in the bloc with an extra incentive to increase production for exports.
Part 1 of the paper presents the characteristics of the EU sugar industry, its role in the
world market since the 2006 Reform of the Sugar Regime, as well as the major
developments in domestic beet sugar production, consumption, raw sugar refining,
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imports and exports over recent years. Part 1 also describes the bloc’s major
preferential trade agreements, especially the progress of Economic Partnership
Agreements with countries of the ACP/EPA groups, EBA arrangements, the CXL imports
and other Free Trade Agreements. Part 2 of the paper assesses the key pillars of the
upcoming 2017 Reform of the Sugar Regime, with a focus on the threat that the
abolition of isoglucose (HFS) quota can bring to the EU sugar market. Part 3 presents
the ISO forecasts for sugar production, consumption, imports and exports for an EU
Post 2017.
Part 1: Developments Since the 2006 EU Sugar Regime
Reform
The EU Sugar Balance
The EU is the world’s second largest sugar consumer (after India) as well as the world’s
third largest sugar producer (after Brazil and India). The bloc is also one of the world’s
largest sugar importers – it was the largest importer of sugar between 2008 and 2011,
losing the first spot to China in 2012. Prior to 2006, the EU was the world’s second
largest exporter (after Brazil). Since 2006, following a policy that encouraged production
cuts in the bloc, sugar exports have collapsed from over 6 mln tonnes to less than 2 mln
tonnes, while imports, by contrast, have risen from around 2.5 mln tonnes to around 4
mln tonnes, raw value – see table. 1.
Table 1: EU Production, Imports, Exports, Consumption and Stocks, 2005-2012
(Tonnes – Raw Value)
Calendar
Production
Imports
Exports Net Trade
Consumption
Ending
Year
Stocks
21,697,646
2,416,931
6,639,198
4,222,267
16,764,547
17,892,886
2005
17,579,659*
2,642,921
6,687,461
4,044,540
17,397,963≈
14,030,042
2006
16,904,337*
3,281,335
1,625,989
-1,655,346
18,540,865
14,522,647
2007
14,707,994*
3,505,094
1,493,606
-2,011,488
18,898,641≈
12,343,488
2008
16,367,884*
3,246,634
1,568,087
-1,678,547
17,796,386≈
12,593,533
2009
16,818,760*
3,287,341
2,362,255
-925,086
19,159,177≈
11,178,202
2010
18,185,101*
4,726,398
1,479,302
-3,247,096
19,258,646≈
13,351,753
2011
18,314,654*
3,843,488
2,081,709
-1,761,779
19,542,751≈
13,885,435
2012
Source: International Sugar Organization Sugar Yearbook.
Campaign: July – February.
From 2007 including figures of Bulgaria and Romania.
*: Excluding production of sugar and sugar syrups used for fuel ethanol production: 2006-518,323t; 20071,541,064t; 2008-1,667,868t; 2009-1,763,511t; 2010-1,141,536t; 2011-1,347,021t; 2012-1,413,000t
≈: Excluding use of sugar and sugar syrups for fuel ethanol production: 2006-129,581t; 2007-774,012t;
2008-1,572,765t; 2009-1,691,778t; 2010-1,608,015t; 2011-1,192,908t; 2012-1,363,518t.
The 2006 Reform of the EU Sugar Regime
The 2006 Reform of the EU Sugar Regime, operational since 1st July 2006, had the main
objective of incentivizing sugar production to migrate to more cost effective regions by
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offering higher cost producers a chance to surrender production quotas and leave the
industry upon compensation. 1 With the Reform, the European Commission targeted a
cut in overall EU sugar production of as much as 6 mln tonnes. The Reform was
implemented in the wake of a WTO panel ruling, which established that EU sugar
exports, at the time in the order of around 5 mln tonnes a year, were cross-subsidised
and, as such, should be capped to no more than 1.35 mln tonnes, white value. The
capped amount would correspond to the equivalent shipments of preferential ACP/LDC
sugar. In September 2007, new elements were agreed to speed up the Reform. 2 The
European Commission, in a 2011 full impact assessment study 3, considered the 2006
Reform to be relatively successful, as it eliminated some key market control measures of
domestic support, such as price intervention, production and export refunds.
Box 1: Key Policy Changes of the 2006 EU Sugar Reform
•
•
•
•
•
•
Reference sugar prices, which have replaced intervention prices, were reduced by 36% over four
years starting from 2006/07. The 2006/07 white sugar support price of EUR 631.9/tonne was
reduced to EUR 404.4/tonne by the end of the transition period in 2009/10. The reference price for
raw sugar was set at initially EUR 523.7/tonne in 2006/07, and was reduced to EUR 335.2/tonne by
2009/10;
The Sugar price intervention (an obligation of the Commission to buy from the industry any unsold
quota sugar at a guaranteed price) was abolished after 2009/10 and replaced with a system of
private storage. Producers taking advantage of the scheme are paid a private storage aid.
Intervention up to 2009/10 was limited to 600 thousand tonnes per marketing year and the buyingin took place at 80% of the reference price of the following marketing year;
Export refunds for sugar were suspended from 2008;
To compensate farmers leaving the sector, direct payments covered 64.2% of the income loss;
A restructuring fund paid a basic EUR 730/tonne up to 2007/08 for producers to renounce their
quotas and quit the industry, with at least EUR 73/tonne going to ex-growers (the fund was paid
for by a levy on continuing processors). To qualify for the restructuring money, which fell to EUR
625/tonne in 2008/09 and EUR 520/tonne in 2009/10, sugar companies had to give up their rights
to the quota, stop production altogether in at least one factory, close the factory (or factories) and
restore good environmental conditions of the site and help the redeployment of factory staff;
The quota system was simplified: the “A” and “B” quotas were merged into a single quota.
See also MECAS(08)18 – EU Sugar Policy Reform – Ramifications for Preferential Exporters
Sugar Production
The 2006 Reform of the Sugar Regime in the EU ended in 2009/10, with over 5.2 mln
tonnes of quota sugar, white value, renounced. However, some 1 mln tonnes of quota
1
European Union. 2006. “Council Regulation (EC) N°318/2006”. http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32006R0318&rid=1. This was integrated into a Unique CMO Council
Regulation n°1234/2007: European Union. 2007. “Council Regulation (EC) N°1234/2007”. http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:299:0001:0149:EN:PDF.
2
These included additional payments of EUR 237.50/tonne for farmers who gave up the quota as well as
waivers on restructuring levies for later year withdrawal of quotas.
3
European Commission. 2011. “Evaluation of CAP Measures Applied to the Sugar Sector”. Online.
http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
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sugar had been purchased by groups, mostly in France and Germany, leading to a net
reduction in EU-wide production quotas in the order of 4 mln tonnes. Currently, several
regulatory measures still apply: a) minimum beet prices; b) sugar production quotas; c)
production charges (levied on the quota, amounting to EUR 12/tonne for sugar and
inulin syrup and EUR 6/tonne for isoglucose); d) carry forward; e) private storage aid
(never applied); f) withdrawal schemes. As detailed later, most of these regulatory
measures (except for e) will be abolished with the upcoming 2017 Reform of the Sugar
Regime. The import duties have been and will be maintained at the level of EUR
419/tonne for white sugar and EUR 339/tonne for raw sugar, with CXL sugar imported
at a EUR 98/tonne duty, and access for preferential partners of the EPA/EBA group and
others kept within a duty free quota free mechanism – see later discussion.
The system of production quotas, which will expire in 2017, is a major pillar of the
current EU Sugar Regime. Both sugar and isoglucose (HFS – High Fructose Syrup)
production are regulated by fixed quotas distributed to Member countries and any
production above the quotas cannot be freely released in the EU market. Instead, they
need to be sold to the chemical or bioethanol industry or exported within the WTO limits
of 1.35 mln tonnes. Sugar production quotas in the EU have fallen from 17.4 mln tonnes
in 2005/06 to 13.3 mln tonnes in 2009/10 (rising slightly to 13.5 mln tonnes with the
accession of Croatia in 2013). Isoglucose production quotas fell only slightly from about
800 thousand tonnes to 700 thousand tonnes now.
After the 2006 Reform of the EU Sugar Regime, sugar production quotas were
significantly reduced in Italy, Spain and Greece and production stopped altogether in
five Member States - Ireland, Latvia, Slovenia, Bulgaria and continental Portugal. As a
result, there has been a further concentration of production in the leading Member
States: the market share of France and Germany increased from 43% of EU production
to 52% on average. Fig.1 shows that the largest 7 sugar producers in the EU-28
(France, Germany, Poland, United Kingdom, Netherlands, Belgium and Italy) today
account for a massive 85% of overall production quotas in the bloc. This is significantly
up from the 76% of EU production quotas held by the seven largest producers prior to
the 2006 Reform. The current distribution of beet sugar quotas in the EU is presented in
table 2.
A major consequence of the Reform is a leaner industry, with significantly higher
sugar/sugarbeet yields from a much-reduced number of players (factories) and on a
reduced crop area. The number of beet sugar factories decreased sharply from 191
prior to 2006 to 108 in 2012/13. 4 Sugar beet areas declined sharply from 2.2 mln ha in
2002/03 to 1.7 mln ha in 2012/13. By contrast, average sugar beet yields increased
from about 60 tonnes/ha to over 70 tonnes/ha in recent years – see table 3. Average
sugar yields per ha also rose significantly from 9 tonnes/ha to over 11 tonnes/ha. Sugar
production dropped by 20% over the period while the use of sugarbeet for ethanol
production has risen from less than 5 mln tonnes to nearly 9 mln tonnes.
4
EU Sugar Yearbook, Bartens.
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Fig. 1: Sugar Production Quotas by Group of
Countries and Share in EU Total, 11/12-13/14
0%
3%
12%
No sugar production quotas:
Bulgaria, Cyprus, Estonia,
Luxembourg, Malta, Slovenia,
Latvia, Ireland
Below median quota holders:
Portugal, Finland, Lithuania,
Romania, Hungary, Slovakia
Above-median quota holders:
Greece, Croatia, Sweden,
Austria, Denmark, Czech
Republic, Spain
Major quota holders: Italy,
Belgium, Netherlands, United
Kingdom, Poland, Germany,
France
85%
Source: European Commission. 2014. “Single CMO Management Committee – Balance Sheet”.
One of the most notable consequences of the 2006 Reform of the EU Sugar Regime was
a further concentration of the EU sugar industry in the most efficient producing groups.
The EU hosts many of the world’s largest sugar conglomerates, such as Südzucker, AB
Sugar, Tereos, Nordzucker, Pfeifer und Langen and Cristal Union, which have pursued
aggressive expansion/consolidation over the past few years. These top producing
groups dominate sugar production in the European Union and have expanded to reach
80% of the bloc’s total production. This makes the EU today one of the most
concentrated producers in the world. For example, Südzucker, the world’s largest sugar
conglomerate, has stakes in 32 plants in Europe, including 9 in Germany, 5 in France
and another 18 factories in another 9 European countries. For full details about location
and production capacity, see ISO paper on FDI and M&A in the World Sugar
Industry, MECAS (12)17 5.
5
The concentration of the EU sugar industry goes beyond beet processing. Cristal Union and Pfeifer &
Langen are now in refining and marketing joint ventures in Italy. Also significant was the 2012 purchase
of 25% minus one share of ED&F Man’s shares by Südzucker.
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Table 2: Annual Sugar Production Quotas by Member State, 2003-2014 (White Sugar Equivalent, Thousand Tonnes) 6
Countries
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom
Total EU 15
Total EU 25
Total EU 27
Total EU 28
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
13/14
309
665
314
674
387
819
405
862
405
882
4
351
676
351
676
351
676
351
676
351
676
351
676
319
131
2,922
2,566
286
179
1,293
673
71
951
331
1,025
11,721
Average
03-06
337
719
Average
11-14
351
676
192
192
441
325
454
420
469
420
372
452
372
372
372
372
372
372
372
372
372
372
372
372
448
355
372
372
132
2,970
2,612
288
400
181
1,310
66
103
146
3,768
3,416
317
401
199
1,557
66
103
146
4,120
3,655
317
406
0
778
66
103
90
4,120
3,655
158
298
0
753
0
111
80
3,437
2,898
158
105
0
508
0
90
80
3,437
2,898
158
105
0
508
0
90
80
3,437
2,898
158
105
80
3,437
2,898
158
105
80
3,437
2,898
158
105
80
3,437
2,898
158
105
80
3,437
2,898
158
105
508
508
508
508
90
90
90
90
136
3,220
2,865
297
401
186
1,387
66
103
684
1,580
72
864
1,671
79
876
1,771
44
207
52
996
368
1,138
210
52
903
325
1,221
804
1,405
9
104
112
0
630
293
1,056
804
1,405
9
104
112
0
498
293
1,056
804
1,405
9
104
112
804
1,405
9
104
112
804
1,405
9
104
112
804
1,405
9
104
112
740
1,626
74
189
48
957
334
1,035
11,888
14,715
931
1,772
24
109
145
0
887
343
1,221
804
1,405
9
104
112
498
293
1,056
498
293
1,056
498
293
1,056
498
293
1,056
17,428
17,149
16,619
16,732
13,460
13,328
13,328
13,328
13,328
13,328
13,520
198
50
968
344
1,066
12,694
14,621
14,621
14,621
508
90
498
293
1,056
11,140
13,224
13,328
13,392
6
Columns 05/06-08/09: European Commission. 2011. “Evaluation of CAP Measures Applied to the Sugar Sector”, p. 15. Online.
http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
Columns 09/10-13/14: European Commission. 2014. “Single CMO Management Committee - Balance Sheet”.
Columns 03/04-05/06: Bartens/Mosolff. 2006. “Zuckerwirtschaft Europa 2006”, pp. 44-49.
International Sugar Organization
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Table 3: Selected Indicators of the EU's Sugar Industry
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
1.848
1.701
2.146
2.142
1.690
1.564
1.363
1.338
1.586
1.624
1.636
112.739
99.270
129.448
132.112
100.792
95.185
83.778
90.682
103.815
123.977
114.548
Sugar beet yields (t/ha) 9
61.0
58.4
60.3
61.7
59.6
60.9
61.5
67.8
65.4
76.3
70.0
Sugar beet producer price (USD/t) 10
37.8
49.8
53.5
54.8
43.6
43.2
45.9
41.1
41.9
47.1
n/a
932
87,349
1,150
87,349
1,145
70,810
664
47,405
352
21,425
70
5,622
60
5,100
63
5,150
65
5,320
62
5,300
62
5,300
Sugar cane yields (t/ha) 13
88.6
75.9
61.8
71.3
60.8
80.3
85
81.7
81.8
85.4
85.4
Sugar cane producer price (USD/t) 14
33.3
44.1
43.7
43.3
40.3
21.5
30.9
29.3
40.6
46.2
n/a
18.407
16.496
21.258
21.887
15.614
16.338
15.244
15.574
15.725
18.875
17.620
Sugar beet area (mln ha) 7
Sugar beet production (mln t) 8
Sugar cane area (ha) 11
Sugar cane production (t) 12
Beet sugar production (in mln mtrv) 15
7
International Sugar Organization.
International Sugar Organization.
9
International Sugar Organization.
10
Food and Agriculture Organization of the United Nations. 2014. Online. http://faostat3.fao.org/faostat-gateway/go/to/home/E.
11
Food and Agriculture Organization of the United Nations. 2014. Id.
12
Food and Agriculture Organization of the United Nations. 2014. Id.
13
Food and Agriculture Organization of the United Nations. 2014. Id.
14
Food and Agriculture Organization of the United Nations. 2014. Id.
15
International Sugar Organization.
8
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Production of out-of-quota sugar in the EU is currently diverted to three ends: the
ethanol industry, the chemical industry and sugar exports. For instance, the out-ofquota sugar production of about 4.1 mln tonnes in 2012/13 was split into three distinct
uses: 1.3 mln tonnes were exported, 0.8 mln tonnes were sold to the chemical/industrial
sector and 2 mln tonnes were diverted to production of ethanol. Because out-of-quota
sugar can only be sold to these three markets, it fetches significantly lower prices than
the EU average quota sugar price. In January 2014, the average price of industrial sugar
was EUR 351/tonne (USD 478/tonne), compared to an average quota sugar price of
EUR 629/tonne (USD 855/tonne). Therefore, the trend has been that beet growers also
receive a much higher price for quota sugar beet production compared to out-of-quota
sugar beet production.
It is important to highlight that beet production is always rotated with other crops and
rarely represents more than a third of a farm area, even in the most specialized farms.
Therefore, the income of beet growers is the result of revenues from beet sales and
other crops, as well as decoupled support. Together with a faster-than average rise in
agricultural beet yields relative to other crops, this mechanism has ensured that beet
production in the EU continues to be a relatively profitable activity in several areas.
Figure 2 shows that, since 2005, average beet yields in the EU have risen by 20%,
whilst maize and wheat yields have not shown any significant upward trend. Longer
term over the past 20 years, beet yields in the EU have risen by 50%, whilst for maize
and wheat the growth have been a more muted 30% and 20%, respectively.
Source: Food and Agriculture Organisation of the United Nations (FAO).
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Box 2: Climate Change and EU Sugar Beet Production
A recent ISO paper - (MECAS(13)07) Climate Change and Sugar Crops - has highlighted the impact that climate
change has had on beet yields with evidence that greater rainfall, coupled with warmer conditions, has been
benefiting sugar beet growing in temperate areas.
Between 1999/2000 and 2008/09, while the beet area for sugar production in the EU has almost halved, the average
sugar yield per hectare has risen by around 15% - see table below. It is believed that a significant part of this gain in
yields can be explained by climate change, due to a favourable combination of high temperatures and water supply.
Mean
in t/ha
France
Germany
Netherlands
Poland
United
Kingdom
Average yields
in t/ha
1990s
2000s
76
57
63
41
55
70
52
59
35
51
80
60
66
45
58
Growth
1990s2000s
13%
13%
11%
22%
13%
Quartile distribution (years)
Q0
Q1
Q2
Q3
Q4
2001
1991
1998
1994
1995
1998
1997
2002
2001
1992
1997
1999
1999
2000
2010
2005
2000
2007
2002
1999
2011
2009
2011
2011
2011
Although benefitting from higher yields, the European Sugar industry is one of the leading players in mitigating
climate change in the world sugar industry. Current tools used include:
• Rotation: sugar beet in Europe is grown on the same field only every three to five years over 8 months and
this rotation contributes to an increase in cereal yields of as much as 10 to 20% in Europe, as well as reducing
the need for fertilizers
• 30% reduction of nitrogen fertilizer over the past 10 years in addition to continue to accrue yield growth
• Decline in pesticide use
• Adoption of beet varieties which are either tolerant or resistant to diseases such as rhizomania, nematodes,
rhizoctonia and cercospora, and have a higher sugar content
• Improved soil management
• Water management to help cope with potentially increased water stress in future as well as to comply with the
Water Framework Directive
• Combined heat and power systems
• Installation of multi-effect evaporation
• Improvement in pulp pressing efficiency
• The beet and sugar sector produce biogas, used for heating purposes and replacing fossil fuels.
The European Union also play an important role to mitigate climate change and its impacts through:
• Directives
• Adaptation schemes provided by the five European Structural and Investment Funds (ESI Funds), the
European Investment Bank, and the European Bank for Reconstruction and Development.
• The Kyoto Protocol
• The cap-and-trade Emissions Trading Scheme (EU ETS) developed in 2005 to trade CO2 emissions.
The EU’s overall environmental target is still for a 20% reduction in GHG emissions and a 20% share of renewable
energy in the EU's total energy consumption by 2020.
Sugar Consumption
The EU is a mature sugar market, with a high level of per capita consumption – 39kg in
2012 compared to a world average of 25kg. According to the ISO Sugar Consumption
model, similarly to other developed markets, but unlike developing countries, sugar
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consumption growth in the EU can be largely explained by population growth – elasticity
of demand of 66% - and to a lesser extent by income growth – elasticity of demand of
30% 16.
Of interest, the EU received a major boost to its overall consumption levels from the
accession of ten new member countries in 2004, which brought additional sugar
consumption of 3 mln tonnes – see fig. 3. The further enlargement of membership with
the incorporation of Bulgaria and Romania in 2007 added another one mln tonnes,
taking overall consumption to over 18 mln tonnes, raw value. Since then, consumption
has been rising slowly at an average rate of about 1% a year, excepting the year of
2009, when consumption slumped as a result of the world financial crisis.
Source: International Sugar Organization.
According to the ISO sugar consumption model, total sweeteners (sugar and isoglucose)
consumption in the EU is set to continue to rise at around 1% a year. Nevertheless,
sugar consumption might rise by less or even fall in the aftermath of the 2017 Reform
due to a likely higher penetration of isoglucose – see last part of the paper for a full
discussion.
Sugar Trade
As discussed earlier, the Reform of the EU sugar market regime resulted in net beet
sugar production quotas being cut to 13.5 mln tonnes from 17.4 mln tonnes, white
value. With sugar consumption at around 18 mln tonnes, and annual consumption
growth averaging around 1%, the production cuts led the bloc to shift from being a
large net sugar exporter to a large net sugar importer. Figure 4 shows that since 2007
16
International Sugar Organization. 2010. “MECAS(10)17 – World Sugar Demand Outlook to 2020”
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gross sugar imports have been consistently larger than 3 mln tonnes, raw value, while
net sugar imports by the EU have averaged about 2 mln tonnes a year.
Source: International Sugar Organization.
Figure 5 shows total EU imports of white and raw sugar between 2002 and 2012. Raw
sugar imports traditionally account for up to 80% of the total volume of EU imports,
with the sugar sourced mainly from traditional preferential partners of the ACP/LDC
group (duty free) and CXL countries (import duty of EUR 98/tonne). White sugar
imports originate mainly from the West Balkans and other European countries as well as
more recently from Mauritius, the largest ACP sugar exporter to the EU. Sugar imports
from ACP (African, Caribbean and Pacific) countries and LDCs (Least Developed
Countries) are now duty-free quota-free. Duty-free quota-free exports for ACPs will from
October 2014 become conditional on their joining Economic Partnership Agreements.17
The EU has also signed some Free Trade Agreements with Latin American countries and
others. Last but not least, the Commission has kept its prerogatives to allow duty-free
imports of sugar and isoglucose for industrial use until 2016/17, which has been set at a
level of 400 thousand tonnes since the 2008/09 season, although only a fraction of
these quotas have in reality been filled.
17
ASSUC Presentation to Kingsman EU Conference, April 2014.
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Total imports by the EU in thousand tonnes
Fig. 5: EU Imports of White and Raw Sugar,
2002-2012 (Raw Value, Thousand Tonnes)
5,000
4,500
Raw Sugar
4,000
White Sugar
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Years
Source: International Sugar Organization.
Non-LDC ACP Sugar Imports
Table 4 shows that total sugar imports from non-LDC ACPs have averaged around 1.3
mln tonnes over the past few seasons. Several ACP countries have been struggling to
increase sugar production for further exports due to difficulties encountered to
modernize their industries amid an increasingly competitive environment internationally.
Of interest, among the current exporters of duty-free quota-free sugar to the EU (LDCs
and ACPs), the share of non-LDC ACPs has fallen from over 80% in the middle of the
past decade to less than 70% now.
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Table 4: Total Sugar Imports by the EU from Non-LDC ACP Countries (Tonnes, Raw Value)
Origin
2006
2007
2008
2009
2010
2011
2012
Mauritius
523,838
468,956
454,730
395,112
396,431
439,556
340,891
Swaziland
153,976
139,964
193,540
205,415
315,330
311,489
298,734
158,791
Zimbabwe
67,688
31,199
79,874
133,959
74,424
190,294
Fiji
219,498
184,087
232,051
209,684
105,634
156,997
80,500
Guyana
175,693
215,944
224,927
185,492
161,740
170,341
164,077
Belize
Jamaica
Dominican Republic
Cote d'Ivoire
Barbados
Kenya
Trinidad & Tobago
59,710
72,297
70,302
82,871
77,147
72,670
104,065
142,490
154,982
143,318
126,595
82,906
99,464
87,542
0
0
12,602
53,229
0
2
0
1,608
0
5,398
3,028
0
0
122
33,917
34,533
29,273
33,678
25,638
24,156
23,088
7,056
44
2,905
2,438
0
16,260
0
36,661
26,720
0
0
0
0
0
Imports from non-LDC ACP
1,422,135
1,328,726
1,448,920
1,431,501
1,239,250
1,481,229
1,257,810
Total imports from LDC + ACP
1,653,711
1,643,540
1,863,186
1,804,308
1,555,023
2,000,019
1,878,150
86.0%
80.8%
77.8%
79.3%
79.7%
74.1%
67.0%
Share of ACP in ACP + LDC
Source: International Sugar Organization.
The largest non-LDC ACP sugar exporter to the EU is Mauritius, with a share of around
30% of total ACP shipments. Since 2009, Mauritius has been exporting 400 thousand
tonnes of white sugar to Südzucker under a 6-year contract. The other non-LDC ACPs
export mostly raw sugar to the EU. While countries like Swaziland have managed to
nearly double the volume of exports over recent years to over 250 thousand tonnes,
raw value, others like Fiji and Jamaica faced difficulties, with shipments falling by as
much as 50%.
Transitioning from ACP Sugar Protocol to EPA 18
The last 15 years or so have seen some significant changes to the treatment of ACP
sugar within the EU Regime. Whilst historically signatories of the ACP Sugar Protocol
had guaranteed tonnages and guaranteed prices for their exports to the EU, it has been
decided that new terms to this duty free quota would have to be agreed by end-2007, a
date coinciding with the expiry of a WTO waiver for the system on non-reciprocal trade
preferences 19. On 17 June 2002, the EU Council opened negotiations between EU and
the ACP countries on Economic Partnership Agreements (EPAs) for WTO-compliant
18
European
Commission.
2014.
“Overview
of
EPA
Negotiations”.
Online.
http://trade.ec.europa.eu/doclib/docs/2009/september/tradoc_144912.2.14.pdf.
19
Overseas Development Institute. 2007. “Briefing Paper 23 – Economic Partnership Agreements: What
Happens in 2008?”. Online. http://www.odi.org.uk/sites/odi.org.uk/files/odi-assets/publications-opinionfiles/556.pdf.
Under WTO rules, developed countries can only give non-reciprocal trade preferences to either all
developing countries, on the one hand, or to Least Developed Countries only, on the other. This should
ensure that no discriminatory measures are applied to any other sub-group of developing non-LDC
countries. It was therefore concluded that the ACP preferential access by the EU appeared as
discriminatory and not justifiable under existing WTO procedures.
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agreements, covering “substantially all trade” in goods (at least 80%) plus services,
investment and trade-related rules, with a view to fostering ACP integration into the
world economy thereby promoting their sustainable development. In short, duty-free
quota-free access to the EU market would be conditional on signing and ratifying an
EPA. The increasing lack of security associated with the dismantling of the ACP Sugar
Protocol has been partly tackled by the EU through an 8-year assistance scheme of
accompanying measures (AMSP), funded from the EU budget 20.
In the framework of EPAs, the EU grants duty-free quota-free access to the products
originating in ACP countries (with a transition period for sugar) while ACPs offer
progressive liberalisation of trade and can exclude products from liberalisation. By 7
February 2014, there were seven regions with on-going EPA negotiations with the EU:
Caribbean, Pacific, West Africa, Central Africa, Southern African Development
Community (SADC), Eastern and Southern Africa (ESA) and East African Community
(EAC). Of interest, some countries within these regions have also initiated bilateral
“stepping stone” (or “interim”) EPAs. Interim agreements establish provisions on market
access of goods but leave other aspects of the EPA (services, investments and trade
related matters) open for further negotiations.
Table 5: EPA Regions 21
Caribbean (CARIFORUM)
Pacific
Antigua and Barbuda, Bahamas, Barbados, Belize,
Dominica, Dominican Republic, Grenada, Guyana, Haiti*,
Jamaica, Saint Lucia, Saint Vincent and the Grenadines,
Saint Kitts & Nevis, Suriname, Trinidad & Tobago
Cook Islands, Federated States of Micronesia, Fiji,
Kiribati*, Marshall Islands, Nauru, Niue, Palau, Papua
New Guinea, East Timor, Samoa*, Solomon Islands*,
Tonga, Tuvalu*, Vanuatu*
West Africa (CEDEAO+Mauritania)
Central Africa (CEMAC+STP)
Benin*, Burkina Faso*, Cape Verde*, Gambia*, Ghana,
Guinea*, Guinea Bissau*, Côte d’Ivoire, Liberia*, Mali*,
Mauritania*, Niger*, Nigeria, Senegal*, Sierra Leone*,
Togo*
Cameroon, Central African Republic*, Chad*, Congo,
Democratic Republic of Congo*, Equatorial Guinea*,
Gabon, Sao Tomé and Principe*
Southern African Development
Community (SADC)
Angola*, Botswana, Lesotho*, Mozambique*, Namibia,
Swaziland, South Africa
Eastern and Southern Africa (ESA)
Comoros, Djibouti*, Eritrea*, Ethiopia*, Malawi*
Mauritius, Madagascar*, Seychelles, Sudan*, Zambia*,
Zimbabwe
Eastern African Community (EAC)
Burundi*, Kenya, Rwanda*, Tanzania*, Uganda*.
In italic –holders of ACP sugar quotas
* LDC
20
For further details, see MECAS(08)18 on EU Sugar Policy Reform – Ramifications for Preferential
Exporters.
21
European
Commission.
2014.
“Economic
Partnerships”.
http://ec.europa.eu/trade/policy/countries-and-regions/development/economic-partnerships/.
Online.
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Caribbean EPA
This was the first EPA to be signed with the EU. In October 2008, 14 CARIFORUM states
signed the Caribbean EPA with the EU (the agreement included all Caribbean states
minus Haiti). This EPA was approved in March 2009. According to the EC, the
agreement: a) opens up trade in services as well as in goods; b) seeks to spur more
investment in the Caribbean; c) commits governments to other trade-promoting
measures, like ensuring free and fair competition; d) promotes development that
respects the environment and people’s rights at work.
Pacific EPA
As of 7th February 2014, Papua New Guinea and Fiji had already signed the Pacific EPA
with the EU. Both Papua New Guinea as well as the EU Council have ratified the Pacific
interim agreement. The EU Commission is “ready to explore the possibility to widen the
membership and deepen the content of the existing EU-Pacific interim EPA”, although
more details have yet to arise.
West Africa EPA
Interim EPAs were initialled bilaterally with Côte d’Ivoire and Ghana at the end of 2007.
Côte d’Ivoire signed the interim EPA on 26 November 2008. No further signatures or
ratifications have taken place by either side since then. In early 2014, new steps were
undertaken for a fresh EPA for the region, with West African countries and the EU
agreeing to prepare the agreement for initialling.
Central Africa EPA
Cameroon signed the interim EPA for Central Africa on 15 January 2009. No further
signatures or ratifications have taken place by either side since then.
Southern African Development Community (SADC) EPA
The EU and Botswana, Lesotho and Swaziland signed an interim EPA on 4 June 2009.
Mozambique followed by signing on 15 June 2009. No further signatures or ratifications
have taken place by either side since then. At the current stage, it looks like there are
moves towards a more comprehensive agreement, which would include South Africa.
Eastern and Southern Africa (ESA) EPA
The interim EPA agreement was signed in 2009 by Mauritius, Seychelles, Zimbabwe and
Madagascar. There are open issues in the negotiations, such as market access offers for
both goods and services by the ESA states, as well as inter alia export taxes, special
agricultural safeguards, rules of origin and cumulation, export subsidies, non-execution
clause, institutional provisions and dispute settlement.
East African Community (EAC) EPA
Burundi, Rwanda, Tanzania, Kenya and Uganda initialled an EPA framework in 2007 but
are now working towards a comprehensive regional EPA, which is yet to be signed or
ratified.
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A crucial element that will ensure the competitive of ACP/EPA sugar relative to other
origins is the extent to which countries within the group will be able to cut their costs in
the period to 2017. There is a possibility of a further loss in market share of non-LDC
ACPs to LDCs. According to Tate & Lyle, the cost of production in some ACP suppliers is
as high as 30 cents/lb, some 70% higher than the current world market price for raw
sugar, ICE n.11 NY contract.
Sugar Imports Under Everything-but-Arms (EBA) Initiative
Sugar imports by the EU from LDC (Least Developed Countries) producers are currently
regulated by the Everything But Arms (EBA) initiative. In 2012 imports from this group
of countries reached a record 600 thousand tonnes, significantly higher than the less
than 200 thousand tonnes prior to the Reform of the EU sugar regime. As a result, the
share of LDCs in total ACP/LDC preferential exports to the EU has increased from
around 10% in the middle of the past decade to over 30% now.
Although the EBA initiative was already adopted in 2001, as an amendment to the EU's
Generalized System of Preferences (GSP), duty-free sugar imports were still restricted
by quotas until 2009. Sugar, alongside another two sensitive products – rice and
bananas – had some specific regulation within the EBA mechanism whereby
implementation of duty-free access would be delayed. In the case of sugar, the import
duties had been phased out progressively from 2006, and reached full duty-free status
in 2009. There are currently 48 LDC countries, down from 50 a few years ago following
the recent upgrades of Cape Verde and Maldives 22.
According to the Framework Agreement on EBA Sugar, the following 25 countries are
identified as the LDC sugar supplying states: Angola, Bangladesh, Benin, Burkina Faso,
Burundi, Cambodia, Congo RDC, Ethiopia, Guinea, Haiti, Laos, Madagascar, Malawi,
Mali, Mozambique, Nepal, Rwanda, Sierra Leone, Senegal, Somalia, Sudan, Tanzania,
Togo, Uganda and Zambia. Of these, 17 countries have exported some sugar to the EU
over the past 8 seasons – see table 6.
22
Even after a country loses LDC status, preferential EBA trade is still applied for a transitional period of 3
years.
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Table 6: Total Sugar Imports by the EU from EBA Countries (Tonnes, Raw Value)
Origin
2006
2007
2008
2009
2010
2011
2012
Mozambique
38,846
85,615
138,883
104,393
86,975
158,701
234,324
Zambia
37,469
36,371
50,313
70,471
82,184
180,112
123,864
Sudan
15,649
30,638
28,663
31,751
21,434
21,142
43,815
0
0
0
0
10,544
23,723
16,342
Malawi
49,082
48,935
85,035
48,206
49,280
61,500
107,438
Madagascar
17,513
4,940
10,205
28,125
9,832
8,997
29,376
Cambodia
Laos
Tanzania
Bangladesh
Sierra Leone
Uganda
Benin
Burkina Faso
0
0
0
24,187
40,932
44,283
45,167
21,298
41,382
20,581
23
0
0
0
365
0
12,700
13,667
0
0
6
5,916
7,258
7,222
4,992
4,757
1,832
3,695
0
0
0
0
0
9,336
435
10,674
16,531
21,297
18,830
9,835
9,164
15,878
5,547
0
0
0
0
0
0
Congo, Rep. of
10,455
0
0
0
0
0
0
Ethiopia
14,769
25,709
22,757
28,162
0
0
0
0
13,705
11,076
0
0
0
0
Nepal
Togo
Total LDC
Total imports from LDC + ACP
Share of LDC in ACP + LDC
3,993
3,730
5,534
0
0
0
0
231,576
314,814
414,266
372,807
315,773
518,790
620,340
1,653,711
1,643,540
1,863,186
1,804,308
1,555,023
2,000,019
1,878,150
14.0%
19.2%
22.2%
20.7%
20.3%
25.9%
33.0%
Source: International Sugar Organization.
The bulk of current deliveries from the LDC group come from seven countries:
Mozambique, Zambia, Sudan, Cambodia, Malawi, Madagascar and Laos. Exports from
Mozambique and Zambia have risen quite spectacularly over the recent years, with
Mozambique shipping a record 234 thousand tonnes to the bloc in 2012, up from less
than 40 thousand in 2006. Among other top LDC exporters, countries like Cambodia and
Laos only started shipping sugar to the EU from 2008. Raw sugar deliveries from
Cambodia in 2012/13 tripled to 50,700 tonnes as new mills came on stream and local
output continues to rise. The last addition was a Vietnamese-owned sugar mill with a
cane crushing capacity of 3,500 tonnes per day, which was inaugurated in May 2013.
Meanwhile, Laos has also established a commercial relationship with Tate & Lyle, with
the first sugar shipments to the UK's refinery arriving in 2008/09.
CXL Imports
The third category of sugar imports comprise sugar bought under special CXL
arrangements, which incur an import duty of EUR 98/tonne for an annual quota of up to
677 thousand tonnes and include quantities calculated from compensatory adjustments
regarding traditional partners of newer member states, such as Finland, Romania and
Bulgaria. It also includes India under special duty-free access for 10 thousand tonnes.
Actual export volumes by CXL quota holders have been greater, as the commission has
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increased access through exceptional measures at times of low export availability from
preferential partners.
Table 7: Total Sugar Imports by the EU from CXL Countries (Thousand Tonnes, Raw Value) 23
Origin
2002 2003 2004
45
65
165
Brazil
94
66
110
Cuba
1
2
1
Australia
57
18
22
India
197
151
298
Total CXL
22.8
43.0
55.3
Share of Brazil (in %)
Source: International Sugar Organization.
2005
2006
2007
2008
2009
2010
2011
2012
164
40
1
11
216
76.0
165
63
1
28
257
64.3
855
131
18
48
1,052
81.2
993
73
11
14
1,091
91.0
775
125
27
14
941
82.3
1,161
75
0
5
1,241
93.5
1,720
74
12
28
1,834
93.7
1,066
210
13
17
1,306
81.6
Special Arrangements
Other agreements ensure duty-free tariff quota for white sugar imports from western
Balkan countries. This is embodied in the 'Balkans Initiative', which was adopted in
2000. This initiative initially granted duty and quota free access to the European Union
market for nearly all agricultural products, including sugar, originating from the Western
Balkans, to volumes that are equivalent to domestic output. Later however tariff quotas
were introduced for the eligible sugar products originating in Croatia, Serbia, Albania,
Bosnia and Herzegovina and the former Yugoslav Republic of Macedonia. Table 8 shows
that only Croatia and Serbia have regularly shipped significant volumes of sugar to the
EU under these arrangements.
Table 8: Total Sugar Imports by the EU from Balkan Countries (Thousand Tonnes,
Raw Value) 24
Origin
2002 2003 2004 2005
Croatia
73
175
52
204
Serbia
205
131
195
104
Others
6
4
8
35
Total Balkans
284
310
255
343
Source: International Sugar Organization.
2006
2007
2008
2009
2010
2011
2012
259
226
6
491
246
215
2
463
192
203
0
395
158
184
0
342
195
206
0
401
194
201
0
395
204
182
0
386
Prior to Croatia joining the EU in mid-2013, Serbia had a tariff rate quota of 180
thousand tonnes of sugar of exports to the EU. The two parties are still agreeing on
whether bilateral exports from Serbia to Croatia prior to enlargement should be counted
as part of the 180 thousand tonne quota or not. This has lead Serbia to recently seek an
additional quota of 46 thousand tonnes to ship to the EU. Serbia's current sugar
production amounts to around 450 thousand tonne of sugar a year.
Moldova benefits from an Autonomous Trade Preferences agreement with the
European Union, which includes a sugar export quota of 34 thousand tonnes. In
addition, in 2012, as part of the negotiations to establish an EU-Ukraine free trade
23
24
International Sugar Organization. 2013. “ISO Sugar Yearbook”.
Id.
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area, it has been agreed to establish export quotas for Ukrainian sugar to the EU in the
amount of 20 thousand tonnes per year.
MFN Imports
For the rest of the world, MFN import duties have been applied. Imports of raw and
white sugar from outside preferential arrangements accrue a duty of EUR 339 a tonne
for raw sugar and EUR 419 for whites. Due to its prohibitive level, practically no sugar is
imported into the EU with the full payment of the duty.
Sugar Imports for the Industrial/Chemical Sector
The current sugar regime also allows for a duty-free quota of 400 thousand tonnes of
sugar imports for the industrial sector. This quota has never been filled, with imports
reaching a maximum of 179 thousand tonnes in the 2008/09 season, when EU prices
were double the level of world sugar prices. The relatively low prices for out-of-quota
sugar have ensured that the industrial/chemical sector can source it at competitive rates
compared to world market price levels.
Table 9: Industrial Import Quota Available and Allocated (Tonnes) 25
Years
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
Source: European Commission.
Quota available
Allocated
200,000
0
400,000
400,000
400,000
20,194
0
179,474
7,860
2,144
The New Free Trade Agreements
With Central America
On 29 June 2012, the EU signed with Central America an agreement leading to dutyfree tariff quotas for agricultural products, which include sugar. The agreement was put
in place in 2013. The trade deal has been applied with Honduras, Nicaragua and
Panama since 1 August 2013, with Costa Rica and El Salvador since 1 October 2013 and
with Guatemala since 1 December 2013.
For Panama, the EU has opened a duty-free import quota for sugar and sugarcontaining products of 12,000 tonnes (in raw sugar equivalent) for 2013, which rises to
12,360 tonnes for calendar 2014 and will be increased by 360 tonnes each year from
January 2015. For the other countries in Central America excluding Panama, the
25
European Commission. 2011. “Evaluation of CAP Measures Applied to the Sugar Sector”, p. 8. Online.
http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
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agreement allows duty-free imports of sugar and sugar-containing products at 150,000
tonnes (raw sugar equivalent) for 2013, rising to 154,500 tonnes for calendar 2014 and
by 4,500 tonnes each year from January 2015. The breakdown for 2014 is 67,700
tonnes for Guatemala, 25,087 tonnes for El Salvador, 22,262 tonnes for Nicaragua,
19,726 tonnes each for Honduras and Costa Rica – see table 10.
Table 10: Central America – EU tariff Quotas (Thousand Tonnes, Raw sugar)
Countries
2013
2014
2015
2016
2017
2018
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
19,464
19,726
19,987
20,249
20,510
20,772
24,391
25,087
25,783
26,479
27,175
27,871
65,000
67,700
70,400
73,100
75,800
78,500
19,464
19,726
19,987
20,249
20,510
20,772
21,681
22,262
22,843
23,424
24,005
24,586
Panama
12,000
12,360
12,720
13,080
13,440
13,800
162,000
166,860
171,720
176,580
181,440
186,300
Total Central America
Source: Azucareros del Istmo Centroamericano.
With Colombia and Peru
On 26 June 2012, the EU signed a trade agreement with Colombia and Peru, which
came into effect on March 1st 2013. The agreement with Colombia and Peru includes
opening of a duty-free TRQ for 84,000 tonnes of sugar, of which Colombia has received
62,000 tonnes and Peru 22,000 tonnes.
Other Potential FTAs
A proposed Comprehensive Economic and Trade Agreement (CETA) between Canada
and the EU may include sugar provisions between the two parties. It is currently being
negotiated whether sugar refined in Canada’s two sugar refineries – Lantic and Redpath
– could be eligible to enter the EU as a duty free product. However CETA is not
expected to be finalized until 2016. It is still unclear at what level the tariff rate quotas
will apply.
Sugar Refining
The reliance on rising quantities of sugar imports over the past eight years has aided
the further development of raw sugar refining sector in the EU. Since 2006, new
refineries have been opened in Member States where there was no refining activity
before, like Denmark, Italy and Spain 26. Second, some significant raw sugar refining
capacity has been added to the EU with the accession of both Romania and Bulgaria,
which traditionally imported some 300 and 500 thousand tonnes, respectively, of raw
26
European Commission. 2011. “Evaluation of CAP Measures Applied to the Sugar Sector”, p. 110. Online.
http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
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sugar for refining. All in all, there are today 34 refineries today in the EU, of which 30
are defined as full-time refiners – see table 11. 27 Full-time refineries (until marketing
year 2016/17) currently have a 3 months’ window to apply in priority for import licenses
of raw sugar. Once this prerogative expires in 2016/17, all operators, including part-time
refineries, beet processors that refine off crop or co-refine, as well as traders, will be
able to apply for licenses since the first day of the marketing year.
In addition to Tate & Lyle, the largest with refining capacity of over 1 mln tonnes a year,
another 29 full-time refineries now operate in the EU, including 1 in Finland, 9 refineries
in Romania, 6 in Bulgaria, 3 in Spain, 3 in Portugal, 3 in Croatia, 1 in Italy, 1 in Denmark
and 2 in France – see table 11. Over the recent years, some sugar refining capacity has
been added to existing beet sugar factories for raw sugar processing. Now, several beet
sugar producers in Europe are capable of refining raw sugar, including Südzucker, ABS
Sugar, Tereos, Cristal Union and Nordzucker 28.
27
European Union. 2013. “Regulation 1308/2013 (EU) of the European Parliament and of the Council”.
Online. http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:347:0671:0854:EN:PDF.
“Full-time refiner” means a production unit: (1) of which the sole activity consists of refining imported raw
sugar, or (2) which refined in the marketing year 2004/2005 or, in the case of Croatia, 2007/2008 a
quantity of at least 15,000 tonnes of imported raw cane sugar.
28
For a comprehensive list of refining capacities in existing beet sugar factories in the EU, see Appendix
of MECAS(12)17 on FDI and M&A in the World Sugar Industry.
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Table 11: Refineries and Refining Capacity by Member State in 2013 Divided Into
Full-Time and Non-Full-Time Refineries (Tonnes of Raw Sugar)
United
Kingdom
Portugal
France
Full-time refiners
Finland
Italy
Denmark
Spain
Bulgaria
Romania
Non fulltime
refiners
Croatia
Poland
United
Kingdom
Netherlands
2013
Thames refinery (Tate & Lyle) – 1,200,000
Tate & Lyle Acucares de Portugal, Santa Iria de Azoia – 300,000
RAR – Refinarias de Acucar Reunidas, Porto – 240,000
DAI – Soc. De Desenvolvimento Agro Industrial Monte de Barca (Sfir + ED&Fman +
others), Coruche – 70,000
Saint Louis Sucre S.N.C. Marseille (Südzucker) – 250,000
S.A. des Sucreries et Raffineries d'Erstein (Cristal Union)
Suomen Sokeri Oy (Nordic Sugar), Kantvik – 60,000
Raffineria di Brindisi (ED&Fman) – 350,000
Nykobing Sukkerfabrik (Nordik Sugar) Azucarera Ebro de Guadalete (ABSugar) – 420,000
Accor-Tereos Olmedo – 135,000
Polígono Industrial El Tapiado, Murcia
Zahar Bio, Ruse
Devnenski zaharen zavod, Devnya
Burgasky zaharen zavod, Burgas
Bulgarska zahar 2002, Dolna Mitropolia
Zaharen kombinat Plovdiv, Plovdiv
Zahar, Stara Zagora
S.C. Agrana Romania S.A. Roman (Südzucker)
S.C. Agrana Romania Buzau (Südzucker)
S.C. Agrana Romania Tandarei (Südzucker)
S.C. Zaharul Oradea S.A. (Pfeifer and Langen)
S.C. Zaharul Liesti S.A.
S.C. Lemarco Cristal S.R.L.
S.C. Zahar Corabia S.A.
S.C. Fabrica de Zahar Bod S.A.
S.C. Zahar Calarasi S.A.
Viro Tvornica Secera d.d., Virovitica
Sladorana Tvornica Secera d.d., Zupanja
Tvornica Secera Osijek d.o.o., Osijek
Nordzucker Polska S.A. Chelmza – 14,000
Pfeiffer & Langen Glinojeck – 180,000
British Sugar Newarc – 120,000
Suiker Unie – 20,000
Source: European Commission. 2011. “Evaluation of CAP Measures Applied to the Sugar Sector”, p. 110.
Online. http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
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Exceptional Measures
The EU market faced a significant supply shortage which first emerged in 2010, due in
part to the fact that the flow of sugar from the developing countries that fall under the
preferred access schemes of the EPA and EBA agreements remained below expectations
since duty free and quota free access for them came into force on 1 October 2009. The
EC was forced to enact several extraordinary measures to ensure supply. These
measures resulted in 1.357 mln tonnes of extra sugar available in the market in
2010/11, 1.049 mln tonnes in 2011/12 and 1.15 mln tonnes in 2012/13, according to
data from the Commission.
The additional supplies were comprised of both conversion of out-of quota sugar into
quota sugar and additional imports, with the latter facilitated by a tendering system for
imports outside the bloc’s preferential schemes at reduced duties.
Table 12: Import Tonnages Entering Under Exceptional Measures (mln tonnes)
Year
2010/2011
2011/2012
2012/2013
Source: European Commission – DGAgri
Import tonnage under exceptional measures
1.35
1.0
1.15
In 2010/11, the EC could no longer ignore sugar supply shortfalls in some MS and
eventually in the spring of 2011 moved 500,000 tonnes of out-of-quota production to
the food market and increased the duty-free sugar import quota by 300,000 tonnes.
Because this additional import quota was hugely oversubscribed, the Commission
expanded duty-free imports by another 200,000 tonnes, which was again widely
oversubscribed. By “summer” 2011, the Commission then organised five import tenders
at reduced duty yielding 358,000 tonnes of additional sugar imports. In 2011/12, the
Commission announced that 400,000 tonnes of out-of-quota production would be
released on the food market at a reduced levy of EUR 85 per tonne compared to the
usual levy of EUR 500 per tonne that processors must pay for selling out-of-quota sugar
for food on the EU market. At the same time, the Commission allowed exceptional
import tenders at reduced duty, which yielded in total some 400,000 tonnes of
additional imports. However, initially ten tenders were announced but three were
cancelled when the Commission thought the market was improving. When it became
clear that was not the case, the Commission released another 250,000 tonnes of out-ofquota production to the food market at a EUR 211 levy. Meanwhile the EU sugar price
had doubled in only 18 months.
To avoid continued problems in MY 2012/13, the EC agreed to new exceptional
measures through reduced duty tendering totalling 1.2 mln tonnes, with 600,000 tonnes
for the release of out-of-quota production to the food market and 600,000 tonnes of
additional sugar imports at reduced duty. These exceptional measures were
implemented through four tenders.
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The limited sugar import supply from ACP and LDC countries has led to increased
competition between EU sugar importers. The large reduction in EU domestic sugar
production mandated by the 2006 Sugar Reform has encouraged EU processors of
domestic sugar beet to diversify their business by investing in cane refining and
participating in the sugar trade business. Some of these processors succeeded in
securing exclusive sugar supply contracts with major ACP and LDC sugar suppliers,
further limiting available duty-free cane sugar import supplies for the historical full-time
cane sugar refiners. This has led to a bidding race for raw cane sugar supplies since late
2010 as full-time cane sugar refiners struggled to find supplies to meet their refining
capacity because of the overall supply shortfalls when LDC countries reduced exports.
The shortfall in refining output supply led sugar users in the food industry to seek
imports of refined sugar. As a result, when the Commission opened additional sugar
import tenders at reduced duty, the competition for licenses pushed tendered minimum
import duties up to EUR 312.6/tonne for raw cane sugar for refining and EUR 345/tonne
for refined sugar for the June 2012 tender. This compares to the full EU tariff for raw
cane sugar for refining of EUR 339/MT and EUR 419/MT for refined sugar. As a result,
spot prices for refined sugar topping EUR 1000/tonne were reported in some MS.
While tendered minimum import duties eased significantly for the import tenders for
2012/13, EU domestic sugar prices for food maintained their high levels because of
supply uncertainty and despite sugar prices on the world market having decreased to
below the EU reference price. It was expected that EU sugar prices would eventually
decrease when new supply contracts were signed with food processors at the end of the
marketing year. The following table provides an overview of the exceptional measures
that the European Commission has taken over the past three marketing years in
response to market supply problems.
Date
Table 13: Commission Exceptional Measures Since MY 2010/2011
(October/September)
MY 2010/11
February 24,
2011 - Mancom
March 10, 2011
May 26, 2011
July 14, 2011 Mancom
July 28, 2011 Mancom
August 25,
2011 - Mancom
Measure
Total: 1 mln tonnes in O-O-Q releases and 348,846 tonnes through import tenders (1.35 mln
tonnes)
Commission allows release of 500,000 tonnes of O-O-Q sugar to the market at zero levy
Opening of exceptional 300,000 tonne sugar import TRQ at zero duty voted. Allocation
coefficient only 1.80% indicating huge oversubscription.
Additional exceptional duty-free TRQ for 200,000 tonnes of sugar imports voted. Allocation
coefficient even lower at 1.28%
Measure to open further sugar import tenders voted.
First tender for imports: 55,000 tonnes of raw cane sugar at minimum duty of EUR
131.11/tonne; 1,644 tonnes of raw sugar not for refining at EUR 150/tonne and 7,700 tonnes
of white sugar at minimum EUR 217/tonne.
Second tender for imports: 141,960 tonnes of raw cane sugar at minimum duty of EUR
151.05/tonne; 200 tonnes of raw sugar not for refining at EUR 170/tonne and 10,048 tonnes
of white sugar at minimum EUR 225/tonne.
Third tender for imports: 83,535 tonnes of raw cane sugar at minimum duty of EUR
170.06/tonne; 757 tonnes of raw sugar not for refining at EUR 190/tonne and 27,440 tonnes
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September 15,
2011 - Mancom
September 29,
2011
MY 2011/2012
November 24,
2011 - Mancom
December 8,
2011
December 15,
2011 - Mancom
December 22,
2011 - Mancom
January 12,
2012 - Mancom
May 3, 2012 Mancom
May 24, 2012 Mancom
June 6, 2012 Mancom
MY 2012/2013
November 8,
2012 - Mancom
December 20,
2012 - Mancom
January 24,
2013
January 28,
2013 - Mancom
February 28,
2013 - Mancom
May 2013
June 2013
June 2013
The EU Sugar Market Post 2017
of white sugar at minimum EUR 250/tonne.
Fourth tender for imports: 0 tonnes of raw cane sugar for refining; 1,160 tonnes of raw sugar
not for refining at EUR 208/tonne and 7,509 tonnes of white sugar at minimum EUR
275.10/tonne.
Fifth tender for imports: 14,500 MT of raw cane sugar at minimum duty of EUR 227/tonne;
827 tonnes of raw sugar not for refining at 300/ tonne and 4,266 tonnes of white sugar at
minimum EUR 308.8/ tonne
Total: 650,000 tonnes in O-O-Q releases and 399,014 tonnes through import tenders (1.05 mln
tonnes)
Exceptional measure for release of 400,000 tonnes of O-O-Q sugar at levy of EUR 85/ tonne
approved.
First tender for imports: 100,000 tonnes of raw cane sugar at minimum duty of EUR 252.5/
tonne
Second tender for imports: 36,000 tonnes of raw cane sugar at minimum duty of EUR 263.5/
tonne
Third tender for imports: 15,000 tonnes of raw cane sugar at minimum duty of EUR 269.16/
tonne.
Fourth tender for imports: 40,000 tonnes of raw cane sugar at minimum duty of EUR 270.16/
tonne
Fifth tender for imports: 58,000 tonnes of raw cane sugar at minimum duty of EUR289.36/
tonne and 7,834 tonnes of white sugar at minimum EUR320/ tonne.
Additional release of 250,000 tonnes of O-O-Q sugar
Sixth tender for imports: 95,000 tonnes of raw cane sugar at minimum duty of EUR 306/ tonne
and 2000 tonnes of white sugar at minimum EUR 340/ tonne.
Last tender for imports: 40,000 tonnes f raw cane sugar at minimum duty of EUR 312.60/
tonne and 5,180 tonnes of white sugar at minimum EUR 345/ tonne.
Total: 600,000 tonnes in O-O-Q releases and 550,000 tonnes through import tenders (1.15 mln
tonnes)
Commission presents plan for exceptional measures for 1.2 mln tonnes of sugar, with 0.6 mln
tonnes of O-O-Q sugar restored and 0.6 mln tonnes of additional imports.
Exceptional measures for 1.2 mln tonnes voted.
Exports of 1.35 mln tonnes of O-O-Q sugar approved for MY2012/13.
Vote on transitional measure for Croatia accession, providing the transitional import quota of
40,000 tonnes.
First tender for imports: 54,000 tonnes of raw cane sugar at minimum duty of EUR 195/ tonne
and 8,540 tonnes of white sugar at minimum EUR 240/ tonne.
First release of 150,000 tonnes of O-O-Q sugar at EUR 224/ tonne.
Second tender for imports: 127,000 tonnes of raw cane sugar at minimum duty of EUR 141/
tonne and 95,293 tonnes of white sugar at minimum EUR 161/ tonne.
Second release of 150,000 tonnes of O-O-Q sugar at EUR 172/ tonne.
Third import tender for imports: 40,000 tonnes of raw cane sugar at minimum duty of EUR
141/ tonne and O-O-Q sugar release of 150,000 tonnes at a levy of EUR177/tonne.
Fourth import tender for imports: 150,883. tonnes of raw cane sugar at minimum duty of EUR
141/ tonne and 44,255 tonnes of white sugar at minimum EUR 161/ tonne, as well as a O-O-Q
sugar release of 150,000 tonnes at a levy of EUR148/tonne.
The approvals bring net total imports of raw and refined sugar for season ending 30
September to 546,092 and total OOQ reclassification to 600,000 tonnes.
The system of “exceptional measures” from the expiring Single CMO is proposed to be replaced
by a system of “Temporary measures” for the remaining three quota years beginning January
1, 2014
Mancom: DG Agri Management Committee.
Source: European Commission DGAgri.
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Looking ahead, the system of “exceptional measures” is to be replaced by a system of
“Temporary measures” for the remaining three quota years beginning January 1, 2014.
Temporary measures are expected to continue the system of exceptional measures, but
the details about the mechanism, duties, etc. are still to be decided in an Implementing
Regulation. It is expected to be politically difficult to deviate from the previous system.
One exception, additional imports will be restricted to raw sugar only, while the old
system allowed refined and raw imports.
Price Developments
The EU has been operating in a relatively deregulated beet and sugar price-setting
scenario since guaranteed domestic prices were abolished in 2006. In some countries
like in Germany, the effective price paid for beet has exceeded the minimum beet price
of EUR 25/tonne by as much as EUR 10/tonne given the relatively high domestic sugar
price environment. In other countries where the beet market is under monopsony
conditions, like in the UK, fierce rounds of negotiations between farmers associations
(NFU) and the sugar industry (ABSugar) have ensured that beet farmers get a single
beet price for production to remain at desired levels. This price negotiation involves an
Inter-Professional Agreement (IPA).
Fig. 6 shows that average white sugar prices within the EU have rarely been lower than
USD 600/tonne since the 2006 Reform of the Sugar Regime. While in the initial years
domestic EU sugar prices within the bloc fell, closing the gap with then historically high
world market prices (ISO White Sugar Price Index), more recently the average domestic
quota sugar price has been significantly greater than the world price. As of November
2013, the difference between the EU sugar price and the world white sugar price was as
high as USD 400/tonne.
Source: International Sugar Organization.
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Indeed, the difference between international and EU sugar prices remains crucial to the
level of sugar supply both in the EU as well as from preferential suppliers. Fig. 7 shows
that since September 2011 the import parity price for white sugar has been lower than
the price of domestically produced white sugar, once freight, insurance and refining
costs are added to the world raw sugar price (proxied by the ISA Daily Price). 29 As of
late 2013, the difference between the EU price (USD 895/tonne) and the ACP/LDC sugar
import parity price (USD 600/tonne) was as high as USD 295/tonne.
Source: International Sugar Organization.
Once CXL duties are added, the picture changes slightly. As fig. 8 illustrates, import
parity prices become somewhat less competitive. As of late 2013 the gap between the
domestic EU price and the import parity price (with CXL duty) was USD 171/tonne (USD
895/tonne versus USD 724/tonne). This shows that a further erosion of EU prices could
significantly dent CXL shipments to the EU over the short to medium-term.
29
Refining and insurance costs are estimated at a respective EUR 80/tonne and EUR 2/tonne and vary in
USD to reflect the evolving EUR/USD exchange rates. Freight rates are those of the ISO database.
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Source: International Sugar Organization.
Part 2: The 2017 Reform
The New Legal Provisions in a Nutshell
On 26 June 2013 a political agreement on the Reform of the CAP was reached between
the Commission, the European Parliament and the Council. The agreement included
extending the current market provisions for sugar until 2016/17 and abolishing sugar
and isoglucose production quotas, as well as minimum beet prices, thereafter. These
provisions were presented as a way of bringing the sugar sector more in line with other
agricultural sectors in the EU. 30 On 20 December 2013 the four Basic Regulations and
the Transition Rules were published in the Official Journal. 31
Similarly to the previous Reform, it is expected that exceptional measures may be
needed during the first years of the new regime. The text of Regulation (EU) n.
1308/2013 establishes that: “[…] Specific instruments will still be needed after the end
of the quota system to ensure a fair balance of rights and obligations between sugar
undertakings and sugar beet growers. Therefore, the standard provisions governing
30
European Commission. 2014. “The Common Agricultural Policy After 2013”. Online.
http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm.
31
European Union. 2013. “Regulation (EU) No 1308/2013 of the European Parliament and of the Council”.
Onine. http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:347:0671:0854:en:PDF.
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written agreements within the trade concluded between them should be established.
[…]”. Moreover, it also adds: “[…] Recent experience has demonstrated the need for
specific measures to ensure a sufficient supply of sugar to the Union market during the
remaining period of sugar quotas. […]”.
The reference prices for unpacked sugar, ex-factory have been maintained at previous
levels:
i. For white sugar: EUR 404.4/tonne;
ii. For raw sugar: EUR 335.2/tonne;
Until 2016/17, it will still be a prerogative of the Commission to adopt acts determining
the appropriate quantity of out-of-quota sugar and imported raw sugar that can be
released onto the Union market. The quotas for the production of sugar, isoglucose and
inulin syrup at national or regional level during the transitional period until 30
September 2017 remain fixed at basically the final level of quotas allocated in marketing
year 2010/2011 32. The transitional provisions still allow for out-of-quota to be
transferred to the chemical or ethanol industry, to be carried forward to the next
marketing year, to be released into the domestic market under special circumstances or
exported within quantitative limits. Otherwise they are still subject to a surplus levy.
The new regime will still have general safeguard measures that the European
Commission can use in case of market disturbances. For example, it will be still possible
to make use of private storage aid in case of domestic prices falling significantly below
the reference price.
Isoglucose: How Big a Threat?
One of the key market focuses regarding the consequences of the 2017 Reform of the
EU Sugar Regime is the potential threat coming from HFS, known in the EU as
isoglucose, a sugar substitute consumed by industrial users (especially soft drink
industry but also dairy products) and produced mainly from maize (but also wheat)
starch. The EU isoglucose industry has also been modernizing since the 2006 Reform,
which gave producers the opportunity to increase their quotas without fees, as well as
to renounce quotas. The isoglucose quota has been kept flat at a level of 0.7 mln
tonnes. Therefore, similarly to the sugar sector, isoglucose production in the EU has
become more concentrated. The average quantities processed per site have increased
by 44% from an average of 41 thousand tonnes to 59 thousand tonnes of isoglucose in
dry matter/year in the EU-27. Quotas for production of isoglucose are now concentrated
in only nine member states, as opposed to 13 member states prior to the 2006 Reform
– see table 14.
32
European Union. 2007. “Council Regulation (EC) N°1234/2007”. Online. http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:299:0001:0149:EN:PDF, section 1, articles 124 to
144.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
29
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
Table 14: Isoglucose Quotas by Member State (Tonnes of Dry Matter)
Countries
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United
Kingdom
Total EU 25
Total EU 27
Total EU 28
05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
13/14
71,592
85,694
99,796
78,153
114,580
89,198
114,580
89,198
114,580
89,198
114,580
89,198
114,580
89,198
114,580
89,198
11,872
19,846
35,389
12,893
137,627
14,210
23,755
42,360
15,433
164,736
16,548
0
49,330
17,973
191,845
0
0
56,638
0
220,266
0
0
55,924
0
220,266
0
0
56,638
0
220,266
0
0
56,638
0
220,266
0
0
56,638
0
220,266
0
0
56,638
0
250,266
20,302
24,301
28,300
32,493
32,493
32,493
32,493
32,365
32,493
9,099
26,781
9,917
10,891
32,056
11,870
42,547
50,928
12,684
37,331
13,823
13,913
59,308
0
42,861
12,500
15,879
68,095
0
41,532
11,261
0
60,142
0
42,861
11,261
0
68,095
0
41,692
10,939
0
65,360
0
42,861
11,279
0
66,838
0
42,861
12,500
0
68,095
82,579
98,845
110,111
123,423
53,810
53,810
53,810
53,810
53,810
27,237
32,602
37,967
43,592
0
0
0
0
0
507,681
607,681
675,016
767,082
819,525
679,206
689,202
684,976
687,835
720,441
720,441
Source: Columns 05/06-09/10: European Commission. 2011. “Evaluation of CAP Measures Applied to the
Sugar Sector”, p. 16. Online. http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
Columns 10/11-13/14: European Commission. 2014. “Single CMO Management Committee - Balance
Sheet”.
Unlike sugar, availability of raw material and its ability for storage does not create the
need for a special link between growers and manufacturers, so in theory the isoglucose
market is more sensitive to market price volatility. Currently, isoglucose is produced by
Cargill, Hungrana, Roquette, Tereos-Syral, Copam, Sucros Oy, and Tate & Lyle – see
table 15.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
30
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
Table 15: Number of Isoglucose Production Sites by Companies and Location 33
Companies
Cargill
Copam
Hungrana
Roquette
Sucros Oy
Syral
Tate & Lyle
Number of
sites
5
1
1
4
1
3
5
Before the Reform
Member states
Germany, Italy, Spain, Poland
Portugal
Hungary
Spain, Romania, Italy, France
Finland
Spain, United Kingdom, Belgium
Romania, Greece, Netherlands, Bulgaria,
Slovakia
Number of
sites
4
1
1
2
0
1
2
2010
Member states
Germany, Italy,
Poland
Portugal
Hungary
Spain, Italy
Belgium
Bulgaria, Slovakia
Source: European Commission. 2011. “Evaluation of CAP Measures Applied to the Sugar Sector”, p. 33.
Online. http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
Some market analysts estimate that up to 30% of the EU’s sugar consumption could be
substituted by isoglucose, but that would mean an almost 100% penetration of
isoglucose in the beverage industry, which is unlikely. As of 2014, isoglucose prices are
lower than sugar prices by some 10-20% 34, although this gap could easily disappear
and even change signs with additional sugar output following the abolition of quotas in
2017.
According to a recent study by the European Commission, consumption of isoglucose in
the EU will more than triple over the next decade. The EU Commission forecasts
isoglucose usage to rise to 2.2 mln tonnes by 2023 from about 600 thousand tonnes in
2014. Isoglucose production is set to rise to 2.4 mln tonnes from the current 700
thousand tonnes 35.
Isoglucose production is unlikely to rise in regions where there is already a grains
production deficit in the EU. This includes the UK and Ireland in northern Europe, the
Netherlands and Belgium as well as most of southern Europe, i.e. Portugal, Spain, Italy
and Greece – See fig. 9. Nevertheless, following the dismantling of production quotas,
isoglucose output may rise in grains surplus regions within the EU, which includes
France, Germany and Poland, Austria and the Czech Republic. In these countries, the
relative price between sugar and grains will be an important variable in determining the
extent to which there will be substitutability in production between sugar and grains.
Germany and Poland have already quotas for isoglucose of respectively 56.6 thousand
tonnes and 42.9 thousand tonnes.
33
European Commission. 2011. “Evaluation of CAP Measures Applied to the Sugar Sector”, p. 33. Online.
http://ec.europa.eu/agriculture/eval/reports/sugar-2011/fulltext_en.pdf.
34
Presentation of Jungen Bruhns, “Does Beet Sugar Have a Future in Europe?” Mumbai, 6th Sugar Asia
Conference, 2014.
35
European Commission. 2013. “Prospects for Agricultural Markets and Income in the European Union
http://ec.europa.eu/agriculture/markets-and-prices/medium-term2013-2023”.
Online.
outlook/2013/fullrep_en.pdf.
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International Sugar Organization
MECAS(14)05
31
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
In regions where there is a sugar deficit but a grains surplus, such as the Eastern
European countries of Romania, Bulgaria, Hungary, Slovakia as well as the Baltic
countries of Estonia and Latvia, isoglucose output could also rise but this should not
happen at the expense of sugar production. Hungary, Bulgaria and Slovakia are already
among the largest quota-holders of isoglucose in the EU, at respectively 250.3 thousand
tonnes, 89.2 thousand tonnes and 68.1 thousand tonnes.
Fig. 9: Sugar/Grain Balances36
Sugar deficit / Grain surplus
Sugar and grain deficit
Sugar and grain surplus
Sugar surplus / Grain deficit
36
Tereos.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
32
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
Box 3: Prospects for Bioplastics Production from Beet
According to a recent report from Rabobank, “Bioplastics Moving to the Beet”, the demand for bioplastics
production in the EU could require the equivalent of 1.2 mln tonnes of sugar by 2020. Indeed, total biopolymer
production is expected to rise from 1.27 mln tonnes in 2012 to 5.8 mln tonnes by 2016, according to European
Bioplastics, a producers and users body. Some food and agricultural (F&A) companies are already involved in
bioplastics supply chains, while others are still exploring the possibilities. F&A companies with ethanol
production capacity may benefit from the growth of drop-in bioplastics in the short term, but in the long run,
higher revenues can be expected from investing in functional bioplastics.
In a recent position paper, “Industrial use of agricultural feedstock”, European Bioplastics has defended the use
of first generation agricultural feedstock for the production of bioplastics. They argue that carbon hydrate rich
plants such as sugarcane or corn require the least amount of land to grow and produce the highest yields. In
the context of the food versus fuel debate, the association argues that food biomass used as feedstock for
bioplastic production currently accounts for less than 0.01% of global agricultural area.
Prospects for Ethanol for the EU-28
The latest ISO forecast on EU ethanol consumption to 2020 optimistically puts the bloc’s
total demand at 11 bln litres, compared to forecast gasoline demand of 114 bln litres,
which effectively translates into a 10% blending – see table 16. This assumes that the
current Renewable Energy Directive targets will not be significantly cut, impacting
demand growth potential. With the approval of the Reform of the EU Sugar regime, it is
unlikely that ethanol production from beets will increase significantly relative to ethanol
production from other sources. At the moment, 50% of out-of-quota sugar is diverted to
the ethanol industry in the EU, because the price of beet for ethanol is significantly
lower than beet used for production of quota sugar. Once the quotas are abolished, the
two-tier price system for beets will effectively disappear, meaning that beet may lose
part of its appeal as an ethanol feedstock, with ethanol beet prices rising to converge
with prices of beet for sugar. The extent to which beet ethanol can gain/lose further
market share relative to other grains will also depend on the dynamics of agricultural
prices.
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International Sugar Organization
MECAS(14)05
33
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
Table 16: Indicative Gasoline and Fuel Ethanol Use in the EU 28 in 2020 (Mln litres) 37
Country (EU
Blend
Gasoline Demand
28)
Rate
2012
10%
2,108
Austria
10%
1,724
Belgium
10%
431
Bulgaria
10%
882
Croatia
10%
525
Cyprus
10%
2,374
Czech Republic
10%
1,933
Denmark
10%
389
Estonia
10%
2,079
Finland
10%
9,818
France
10%
25,387
Germany
10%
4,086
Greece
10%
1,626
Hungary
10%
1,688
Ireland
10%
11,856
Italy
10%
326
Latvia
10%
354
Lithuania
10%
468
Luxemburg
10%
102
Malta
10%
5,603
Netherlands
10%
5,258
Poland
10%
1,571
Portugal
10%
1,910
Romania
10%
791
Slovakia
10%
768
Slovenia
10%
6,683
Spain
10%
3,966
Sweden
10%
18,891
United Kingdom
10%
113,598
Total EU 28
Source: International Sugar Organization.
Gasoline Demand
2020
Fuel Ethanol Demand
2020
1,963
1,439
436
950
606
2,738
1,573
450
1,715
6,697
22,925
3,928
1,724
1,834
7,807
344
386
447
107
5,416
5,761
1,386
2,247
853
780
4,979
3,640
15,239
98,368
218
160
48
106
67
304
175
50
191
744
2,547
436
192
204
867
38
43
50
12
602
640
154
250
95
87
553
404
1,693
10,930
Part 3: Price Scenarios and Impact on the World Trade
Previous Impact Assessment Studies
Over the past few years, several studies have assessed the potential impact of
abolishing sugar production quotas in the EU. According to a recent impact study by the
European Commission, domestic sugar prices could decrease by 45% compared to
2012. 38 The study concluded that only beet growers that achieve yields above 70
tonnes/ha would remain in business while others might switch to alternative crops. The
study forecast sugar consumption in the 28 countries of the bloc to drop 3.9% by 2023
to 17.1 mln tonnes from the current 17.8 mln tonnes. Sugar production, by contrast, is
37
International Sugar Organization. 2013. “ISO Ethanol Yearbook”.
European Commission. 2013. “Prospects for Agricultural Markets and Income in the European Union
2013-2023”.
Online.
http://ec.europa.eu/agriculture/markets-and-prices/medium-termoutlook/2013/fullrep_en.pdf.
38
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International Sugar Organization
MECAS(14)05
34
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
projected to rise to 17.1 mln tonnes in 2023 from 15.6 mln tonnes currently from a
forecast 119.3 mln tonnes of beet (up from 110.7 mln tonnes currently). Sugar prices in
the bloc are forecast to go down significantly to EUR 405/tonne by 2023, from EUR
584/tonne in 2014. Moreover, isoglucose consumption is expected to rise from 0.7 mln
tonnes during the 2013-2016 period to 2.2 mln tonnes in 2023, following the expiry of
isoglucose production quotas in 2017. Imports are expected to decline, but would not
disappear due to the seasonality and concentration of production in the bloc. Sugar
imports are projected to be halved, from 3.9 mln tonnes in 2013 down to 2 mln tonnes
in 2023 and exports are expected to increase to 2 million tonnes. The commission
expected beet ethanol to lose some competitiveness relative to ethanol produced from
other sources.
In a 2014 assessment using the Aglink-Cosimo model, the OECD-FAO forecast sugar
production of the EU-28 to rise from 18.141 mln tonnes, raw value (average 2011-13)
to 18.560 mln tonnes, raw value in 2023. Imports are forecast to fall significantly from
an average of 4.185 mln tonnes, raw value (2011-13) to only 1.895 mln tonnes in 2023.
Exports are also forecast by the OECD/FAO to fall from 2.035 mln tonnes (average
2011-13) to 1.734 in 2023. The fall in net imports by almost 2 mln tonnes, despite a
production rise of 400 thousand tonnes, is due to a higher penetration of isoglucose.
According to an assessment by BNP Paribas, the EU beet sugar market will be
structurally less attractive to both investors and industry participants when the current
quota regime ends 39. The assessment anticipates lowers profits and a more competitive
environment when the system of quotas is abandoned. BNP Paribas also expects the
major players to step up investment to remain competitive, which will in turn subdue
profits further, at least initially. New investment is likely to involve assets outside the
European Union, which could change the evolving relationship between farmers and
shareholders over the longer term. BNP estimated that Südzucker’s EBITDA (earnings
before interest, tax and amortization) may be in 2018 45% below the level of 2013. BNP
also forecast lower earnings in the sugar operations of AB Sugar, which is offset by
higher profits elsewhere in the context of the broader equity held by parent company
ABF.
Tereos, a large producer of both sugar and starch products, has recently forecast a
rather optimistic scenario for beet sugar production in the bloc inspite of the threat of
isoglucose after the dismantling of production quotas in 2017 40. The Paris-based
company estimates that most of the large European producers are able to produce
sugar at a cost of USD 500/tonne, being effectively able to price out some future
isoglucose production growth. The average length of the beet campaign is likely to
increase by almost 20% to 130 days in 2017. The company forecasts EU output in 2017
at between 18 and 21 mln tonnes. The bloc’s largest producers in 2017 will be, in
descending order: France (between 5 and 5.5 mln tonnes), Germany (between 4.5 and
39
40
F.O. Licht, 17 September 2013.
Presentation of Pierre Henri Dieter to Kingsman Sugar Conference, Dubai 2014.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
35
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
5 mln tonnes), Poland (around 2 mln tonnes), UK (around 1.3 mln tonnes) and the
Netherlands (around 1 mln tonnes) 41. The positive Tereos assessment is echoed by a
recent evaluation by Rabobank, which projects that the larger EU beet sugar operations
will thrive in a quota-free environment, with the smaller beet sugar producers as well as
the cane sugar refiners suffering the bigger losses.42
Some sources estimate that sugar production costs in the EU can be as low as USD
500/tonne for most of the bloc 43, for a beet cost of USD 40/tonne, which equates to
EUR 30/tonne or 20% less than today’s level 44.
ISO Assessment and Forecast
Discounting any further penetration of isoglucose, sugar consumption in the EU-28 is
expected to continue to rise at around 1% a year, to a level around 18.8 mln tonnes,
white value, in 2017.
For the time being, the ISO is working with two scenarios for world raw sugar prices
over the next three years: a lower world raw sugar price scenario of USD 350/tonne and
a higher world raw sugar price scenario of USD 450/tonne.
It is worth noting that under a new quota-free regime, it is still debatable whether
exports from the EU might legally exceed the current WTO limits on the grounds that
the last mechanism of cross subsidization and production control will have been
deactivated.
The ISO has prepared two scenarios for EU sugar production/consumption and trade in
2017. The first scenario is where sugar prices are relatively high in the EU – at USD
700/tonne for domestic white sugar- but relatively low in the world market – at USD
350/tonne for raw sugar – see fig. 10. In this scenario, EU sugar producers would be
unable to avoid a higher penetration of isoglucose in the bloc’s industrial sweeteners
consumption and would also fail to expand their presence into a depressed world
market. Although this scenario sees the average EU sugar price falling, it will still remain
above the threshold level of USD 650/tonne below which sugar starts to be considered
as more cost-competitive than isoglucose in a quota-free environment.
Production/consumption of isoglucose would rise to 2.7 mln tonnes, compared to 700
thousand tonnes today. Consequently, sugar consumption would fall from 18 mln
tonnes to 16.8 mln tonnes. Crucially, imports of sugar under preferential agreements
will remain profitable, with import parity, even with payment of the full CXL duty, still
lower than EU prices. Imports are projected to remain as high as 3.0 mln tonnes.
Exports to the world market would be around 2.0 mln tonnes.
41
42
43
44
Presentation
Presentation
Presentation
Presentation
of Pierre Henri Dieter to Kingsman Sugar Conference, Dubai 2014.
by Ruud Schers to Kingsman Sugar Conference, Geneva, 2014.
of Pierre Henri Dieter to Kingsman Sugar Conference, Dubai 2014
of Jurgen Bruns on the Future of EU beet Production, 6th Asia Conference, Mumbai, 2014.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
36
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
Source: International Sugar Organization.
Table 17: Scenario 1 – EU 28 sugar balance (Mln tonnes)
Sugar production
Sugar consumption
Isoglucose consumption
Imports
Exports
Source: International Sugar Organization.
Today
Post 2017
15.8
18.0
0.7
3.8
1.6
15.8
16.8
2.7
3.0
2.0
In the second scenario, EU sugar prices would be relatively low at USD 600/tonne, with
world raw sugar prices higher than in the first scenario at USD 450/tonne – see fig. 11.
In this scenario, sugar would be able to fend off some of the threat coming from
isoglucose production. Here we estimate production/consumption of isoglucose rising to
only 1.5 mln tonnes. At the same time, domestically produced sugar would be cheaper
than imported sugar under preferential agreements, whether they incur the CXL duty or
not. This means that sugar production within the EU would also have an incentive to
expand to export, as the EU price would be closer to the world market price. In this
scenario, sugar production could expand by as much as 3.2 mln tonnes, with isoglucose
production/consumption doubling from the current 700 thousand tonnes to 1.5 mln
tonnes. Imports from the world market would drop to 1.5 mln tonnes, and exports
would be as high as 2.5 mln tonnes.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
37
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
Source: International Sugar Organization.
Table 18: Scenario 2 – EU 28 sugar balance (Mln tonnes)
Sugar production
Sugar consumption
Isoglucose consumption
Imports
Exports
Source: International Sugar Organization.
Today
Post 2017
15.8
18.0
0.7
3.8
1.6
19.0
18.0
1.5
1.5
2.5
One must not forget that, crucial to the above assumptions, is the dynamics of
USD/EUR exchange rate. These have trended in the range between 1.3 and 1.4 over
recent years. A stronger USD ceteris paribus would somewhat reduce the import parity
value in USD (due to a lower USD-nominated duty as well as lower refining costs) but at
the same time would sharply decrease the EU domestic price when expressed in USD.
The average scenario forecasts a balanced market in the EU, with production and
consumption of sugar at 17.4 mln tonnes, and isoglucose production/consumption rising
by 1.4 mln tonnes to 2.1 mln tonnes. Imports and exports of sugar would balance out at
2.3 mln tonnes, meaning that imports from the ACP/LDC group would still be prioritized
but any hopes of significantly higher imported quantities are likely to be frustrated.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
38
Market Evaluation Consumption and
Statistics Committee
The EU Sugar Market Post 2017
Table 19: Average scenario – EU 28 sugar balance (Mln tonnes)
Sugar production
Sugar consumption
Isoglucose consumption
Imports
Exports
Source: International Sugar Organization.
Today
Post 2017
15.8
18.0
0.7
3.8
1.6
17.4
17.4
2.1
2.3
2.3
Conclusions
This paper has taken stock of major developments in the EU sugar industry over the
past few years and presented an outlook for sugar production, imports and exports in
the context of the 2017 Reform of the EU Sugar Regime. The study has shown that the
future abolition of sugar and isoglucose production quotas as well as minimum beet
prices from 2017/18 will possibly lead to higher production on the back of a more
efficient and leaner industry and relatively profitable margins. Sugar production costs in
the EU will continue to fall (as a result of higher yields and greater investment), to
remain below the import parity price level for raw sugar under preferential trade
(including EPA/EBA and CXL). As such, the EU may lose its current status as one of the
world’s largest sugar importers (it was the largest between 2008 and 2011).
This work has concluded that it is unlikely that volumes greater than 3.0 mln tonnes will
be imported in any year by a sugar production quota-free EU-28 bloc from 2017. This
paper presents two scenarios for EU production and trade post 2017. Sugar production
is forecast as ranging from 15.8 to 19 mln tonnes, white value, in 2017/18, and sugar
consumption may fall from the current level of 18 mln tonnes due to the likely increased
penetration of isoglucose in the bloc’s soft drink industry. While sugar and isoglucose
are not perfect substitutes (they only compete in about 30% of the total sweeteners
market in the bloc), a scenario of high domestic EU prices will prompt consumption of
isoglucose by the industrial end users to rise by as much as 2 mln tonnes, denting the
sugar market share in that branch of the EU market. Alternatively, lower EU prices for
domestically produced sugar may prevent isoglucose offtake to rise by as much,
securing a domestic market share for beet sugar whilst at the same time fending off
further imports. Projected sugar imports range from a low of 1.5 mln tonnes to a high of
3.0 mln tonnes, with the EU in one of the two scenarios becoming a net sugar exporter
(2.5 mln tonnes of exports as against 1.5 mln tonnes of imports).
Finally, preferential exporting countries, especially those of the LDC/ACP group, which
will continue to enjoy duty-free access into the EU, might be disappointed with forecast
imports by the EU failing to even exceed 3.0 mln tonnes. Further investment in these
countries’ sugar industries should be therefore also aimed at regional as well as world
markets. Nevertheless, a faster than expected development of a beet bioplastic industry
as well as a significant offtake of beet ethanol production could still come as welcome
surprise, boosting further potential sugar import demand by the EU beyond current
market expectations.
________________________________________________________________________________
International Sugar Organization
MECAS(14)05
39
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£205
Sugarcane Ethanol and Food Security (MECAS(09)07)* £185
Outlook on Brazil’s Competitiveness in Sugar & Ethanol
(MECAS(09)06)*
£185
Regular Publications:
Quarterly Market Outlook*
£350
Monthly Statistical Bulletin*
£250
Monthly Market Report & Press Summary*
£225
Sugar Year Book 2013 *
£245
Ethanol Year Book 2013*
£200
Mid-term analysis on Sugar, Ethanol & Sweeteners market development
Providing updates on the world sugar Situation
Report on sugar and ethanol markets for the previous month
Hardback , 400 pages, 150 Country Tables with full details of production,
consumption, trade and stocks (7-8 yrs series)
Hardback , over 30 pages of explanatory text plus 120 pages of tables with
details of fuel ethanol production, consumption, trade and stocks for key and
emerging countries (7-10 yrs series)
World Sugar Balance*
Current forecast and historical data (7 years series) on
production, consumption, import and export
£250
*ALSO AVAILABLE AS A SOFTCOPY
Tel: +44 20 7513 1144 International Sugar Organization
1 Canada Square, Canary Wharf, London E14 5AA
Fax: +44 20 7513 1146 Email: [email protected] Web: www.isosugar.org

Sugar Packet - CKE Restaurants

How much added sugar is hiding in your packaged foods

July 21, 2014 - SUGAR TRADE FAIRNESS

August 13, 2014 - SUGAR TRADE FAIRNESS

Biography of Philippe Duval, Group Chief Executive

For personal use only

Nutrition Nuggets - Aliamanu Elementary School

Plant Tissue Culture References - Carnegie Institution for Science

investment safeguards production at indonesian sugar mill

Delta Sugar - Prime Holding.