News and views

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

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15/8/2022

gov.uk

New UK trading scheme to replace GSP cuts tariffs on hundreds of everyday products

The Developing Countries Trading Scheme (DCTS) will help UK businesses access hundreds of products from around the globe at lower prices, reducing costs for UK consumers.In early 2023, the UK’s DCTS will replace the UK’s current Generalised Scheme of Preferences (GSP). The government is introducing the DCTS to improve access to the UK market for developing countries.

12/8/2022

Local Government Association

Councils express concern how UK Sugar Tax of £1.2 billion is being spent

The soft drinks industry levy, designed to reduce consumption of sugary drinks, has raised around £1.2 billion since its introduction. However, it is no longer ringfenced to be spent on efforts to tackle obesity and physical inactivity despite a commitment from the Government to use the levy to fund “programmes to encourage physical activity and balanced diets.” A recent study suggests that only 45 per cent of primary school aged children have one hour a day worth of physical activity, with data collected by councils also revealing rates of childhood obesity are still above their pre pandemic levels.

11/8/2022

Bayerischer Rundfunk

Sugar beet harvest in Franconia: "We simply lack the water"

Sugar beet is a culture that can cope with dry phases, says Johannes Menth, chairman of the Association of Franconian Sugar Beet Farmers (Verbands Fränkischer Zuckerrübenbauer). But this year, he expects yields on average about a third less than in "normal" years. "According to the current status, we also have a few farmers who have almost total failures," says Menth. The effects of drought vary greatly from region to region. Where a little rain has arrived in recent weeks and months or the soils are better, the condition of the beets is a little better. "At the moment, however, the beets are suffering a lot, we simply lack the water," says Menth. Such extreme drought periods usually occurred every 10 – 15 years before the 2000s. Meanwhile, it is more and more often too hot and above all too dry.

4/8/2022

Reuters

Tereos sees good sugar beet yield in France despite drought

France's largest sugar group Tereos said on Thursday it currently expects yields in this year's French sugar beet harvest to top the five-year average despite a lack of rainfall. "In France, crop development has progressed smoothly during the 2022 season despite reduced rainfall, and as things currently stand, the average yield for the season is expected to exceed the average for the past five years," Tereos said in a first-quarter results statement.

3/8/2022

Reuters

ASR Group in 10-year deal to buy non-genetically modified sugar from Raizen

ASR Group, the world's largest sugar refiner, has agreed to a 10-year deal to buy millions of tonnes of non-genetically modified (GMO-free) raw cane sugar from Brazil's Raizen, according to both companies. This is the world's first large-scale deal for GMO-free raw sugar and it comes as several sugar producers in Brazil are starting planting of genetically modified (GMO) sugarcane varieties, seeking to reduce production costs. U.S.-based ASR Group agreed to buy 1.2 million tonnes of certified GMO-free raw sugar from Raizen for the next 10 years.

26/7/2022

earth.com

Sugar taxation could help combat climate change

I don't generally highlight these sorts of stories, but this one is so utterly delusional, I couldn't resist. Reducing sugar consumption could aid in combating climate change, according to new research carried out by the Institute of Environmental Science and Technology of the Universitat Autònoma de Barcelona (ICTA-UAB). The study, published in Nature Sustainability, explores alternative uses for sugar cropland in the European Union (EU). The experts looked into three strategies: reforesting current sugar cropland; switching sugar beet crops for ethanol production; and exporting excess sugar to Brazil, allowing Brazil to swap sugar production for ethanol production. With the first scenario, the researchers estimate that carbon emissions could be reduced by 20.9–54.3 MtCO2e per year. That number could be doubled for the second scenario and quadrupled for the third scenario.

25/7/2022

European Commission JRC

Reduced yield outlook for summer crops in Europe - JRC MARS

According to the latest JRC MARS Bulletin - Crop monitoring in Europe, the yield outlook for EU summer crops was substantially reduced due to continued hot and/or dry weather conditions in much of Europe. However, EU sugar beet appears to remain resilient and the overall MARS yield forecast is maintained at 77.4 tonnes per hectare, 4% above the 5 year average. The yield estimate France is maintained at the historical trend level. In Germany, soil moisture is of concern and will most likely lead to a further downward revision in the August MARS bulletin. In Poland, MARS states that the conditions for sugar beet and potato are rather satisfactory. MARS sugar beet yield estimates are sharply down in Spain (-8.5% compared with the 5 year average), Italy (-9.7%) and Romania (4.5%).

18/7/2022

European Commission JRC

Droughts in Europe in July 2022: almost half of the EU +UK territory at risk

The severe drought affecting several regions of Europe since the beginning of the year continues expanding and worsening. Dry conditions are related to a wide and persistent lack of precipitation combined with early heat waves in May and June. • The severe precipitation deficit has been impacting river discharges widely across Europe. • Reduced stored water volume is having severe impacts on the energy sector both for hydropower generation and for cooling systems of other power plants. • Competition for water resources is high and started earlier than usual. Water and heat stresses have reduced crop yield and crop yield potential. Water supply may be compromised in the coming months.

15/7/2022

Strube D&S GmbH

Strube tests indicate yields in Germany far above expectations and the long-term average

As every year, the sugar beet seed company Strube D&S GmbH has carried out a small pre-sampling of sugar beet fields in mid-July in the Soester Börde region. Beet weights of 30 fields were recorded and evaluated. The result is very surprising, as it is far above our expectations and the long-term average. According to our observations, leaf diseases, especially Cercospora leaf spots, are currently developing cautiously due to weather conditions. Exceptions are the irrigation areas and wetter regions, especially in southern Germany. Here should be urgently controlled and fungicide set. Occasionally rust pustules appeared in July. Beet rust is actually an autumn mushroom that loves moisture in combination with rather cooler temperatures around 20 ° Celsius. In addition to leaf spots, yellowing leaves and the first yellowing nests are now observed. In Germany, it is alarmingly dry in large parts. According to the German Weather Service (DWD), the spring months provided only two-thirds of the usual precipitation. June is closed by the DWD as "exceptionally warm, very dry and extremely rich in sunshine". The sugar beets often participate in the passing thunderstorms and heavy rains. The irrigation systems run on sandy soils.

14/7/2022

Südzucker AG

Südzucker expects significant year-on-year earnings growth also in the second quarter

Following a continued positive development, Südzucker AG expects group EBITDA and group operating result in the second quarter of fiscal 2022/23 (1 June to 31 August 2022) to be significantly higher than the previous year's level (Q2 2021/22: EBITDA: EUR 157 million; operating result: EUR 85 million). The improvement in group EBITDA and group operating result is largely driven by the CropEnergies segment.

13/7/2022

Ministry of Agriculture and Food Sovereignty (FR)

Réunion sugar cane price to exceed 100 €/t for the period 2022-2027

After a final negotiation session led yesterday by the prefect of Reunion, planters and industrialists have reached an agreement on the new cane agreement, which sets the conditions for the purchase of cane for the period 2022-2027. the purchase price of a ton of cane will be able to exceed €100, a gain of more than €15 compared to the previous convention.

13/7/2022

Statistics Netherlands

Dutch sugar beet area increases by 1.6 percent in 2022

The Dutch sugar beet area has increased by 1.6 percent in 2022, according to Statistics Netherlands (CBS)

13/7/2022

Agreste

French industrial sugar beet area estimated down 1.3% in 2022

The area under industrial beet is estimated at 397 thousand hectares, down compared to 2021 (-1.3%) and even more compared to the 2017-2021 average (-11,5 %).

12/7/2022

Nordzucker

Nordzucker guarantees a minimum price for sugar beet of 37 €/t in the 2023 cultivation year

In mid-May, Nordzucker and the Dachverband Norddeutscher Rübenanbauer e.V. (DNZ) agreed on the concrete form of the contract offer and, in particular, a minimum price for sugar beet of 37 euros per tonne in the 2023 cultivation year. The deadline for growers to subscribe to contract quantities ended on 15 June 2022. The one-year supply contract for beet cultivation in 2023 offers the more than 3,000 beet growers a flexible price clause to reflect market changes and/or rising costs. Gorissen is optimistic that after the beet harvest and marketing of the sugar, the beet price in 2023 will be significantly above the guaranteed minimum price. Nordzucker had already raised the prices for the existing multi-year contracts, and that too for 2022.

11/7/2022

Professor Emeritus Dr Alan Matthews, Trinity College Dublin

EU throws hand grenade into global agri-food trade

On 6 July 2022 the EU circulated to WTO Members its proposed revisions to Maximum Residue Limits (MRLs) for two neonicotinoid insecticides clothianidin and thiamethoxam. While such notifications of changes in MRLs are routine, this particular notification stands out because it is the first time that the EU, or indeed any WTO Member, has proposed to set MRLs on the basis of the global environmental impact of the specified pesticides rather than on the basis of good agricultural practice while ensuring protection of consumer health. This would mean that the new EU MRLs are effectively a ban on the import of agricultural commodities that have been produced using these insecticides.

8/7/2022

julianprice.com

EU Sugar production to drop to 15.8 million tonnes as EU sugar stocks recover

The European Commission estimates that EU27 sugar production will decrease by 5% in 2022/23 owing to the recent dry and hot weather. However, due to the increase in production last year 2021/22, EU ending stocks of sugar are expected to recover to 1.9 million tonnes, more than 50% higher than the very low ending stocks last year of 1.2 million tonnes.

7/7/2022

Südzucker

Südzucker estimates the sugar segment's 2022/23 operating result to be in a range between EUR 0 and 100 million

The forecast for fiscal year 2022/23, which was raised significantly in the MAR announcement of 15 June 2022, is further confirmed. The underlying assumptions are still that the Ukraine war will be temporary and remain regionally contained, that despite of the current developments physical supplies of energy and raw materials will be guaranteed and that the target and procurement markets will at least partly return to more normal conditions over the course of fiscal 2022/23. In this context, we also assume that the declaration of the gas emergency plan alert level in Germany will not result in any significant negative price effects. Südzucker’s expected pass-through of significantly higher prices, particularly in the raw materials and energy sectors, into new customer contracts will be of decisive importance.

7/7/2022

Agrana

AGRANA on track despite difficult market environment

Outlook: For the full 2022|23 financial year, AGRANA expects a very significant increase in operating profit (EBIT). Group revenue is projected to show significant growth. This forecast is based on the assumption that the war in Ukraine is temporary and remains regionally limited, that the physical supplies of energy and raw materials are ensured and that the Group’s target markets and procurement markets partially return to normal within the 2022|23 financial year. AGRANA also expects and assumes that it will be able to pass on the significant price increases (seen especially in raw materials and energy) through new customer contracts.

6/7/2022

Cristal Union via Twitter

Mauritius Sugar Syndicate renews contract with Cristal Union

Cristal Union has renewed its partnership with MSS (Mauritius Sugar Syndicate). The leaders of Cristal Union & Cristalco have signed a contract with MSS for 70,000 tons of sugar per annum for three years. Further details at https://www.lexpress.mu/article/410062/partenariat-cristalco-renouvelle-sa-confiance-dans-sucre-blanc-mauricien

6/7/2022

World Bank

Trade restrictions are inflaming the worst food crisis in a decade

The price of wheat, a key staple in many developing countries, has shot up by 34 percent since the Russian invasion of Ukraine in late February. Other food costs have also risen. In response, as of early June, 34 countries had imposed restrictions on exports on food and fertilizers – a figure approaching the 36 countries that used such controls during the food crisis of 2008-2012. These actions are self-defeating because they reduce global supply, driving food prices even higher. Other countries respond by imposing restrictions of their own, fueling an escalating cycle of trade actions that have a multiplier effect on prices.

6/7/2022

Euractiv

Sugar could become sour point in EU-India trade talks

Following a recent World Trade Organisation (WTO) ruling condemning India’s sugar subsidies, the European Parliament on Tuesday (5 July) called for no concessions in the talks over a future trade and investment agreement between Brussels and Delhi. After more than eight years of stalled negotiations on a comprehensive EU-India trade agreement, the two sides formally restarted talks in June, with the aim of striking a deal before both head to the polls in 2024. In a report, the European Parliament called for an immediate suspension of the WTO quota that provides India with 10,000 tonnes worth of preferential access to the EU sugar market annually.

5/7/2022

CEFS

CEFS and CIBE strongly oppose any new FTA market access for India

CEFS Director General Marie-Christine Ribera said: "Our sector has long called for the elimination of trade-distorting subsidies and strongly opposes any market access where no level playing field exists. We call on the European Commission to take the European Parliament's position into account in the EU-India talks and to ensure that no more Indian sugar enters the EU market until the offending measures are removed." In its report the European Parliament also noted that Indian sugar has long been produced under substandard social and environmental conditions. Conditions of forced labour, abuse of migrant children and non-payment of wages at the end of the season have been reported. CIBE Director Elisabeth Lacoste said: "The EU is the global leader in driving the global green and sustainable transition. The WTO recognises members' right to implement measures to achieve legitimate policy objectives, such as the protection of human health and safety, or protection of the environment if these are non-arbitrary, non-discriminatory or trade restricting. Such standards can enhance trade and sustainable development. Therefore, the EU beet sugar sector supports all measures to avoid importing sugar from India or from any third country produced under substandard social and environmental conditions."

28/6/2022

NFU Sugar

NFU Sugar and British Sugar agree a 48% price increase in the beet price to £40 per tonne for 2023/24

NFU Sugar and British Sugar have agreed a beet price of £40 per tonne for the 2023/24 sugar beet contract year, which represents a 48% price increase on the previous year. The offer also includes a number of new options for growers to consider as part of the contract: An option to purchase a yield guarantee product that protects income against yield losses. A ‘futures-linked’ variable price contract for the 2023/24 crop which enables growers to make more dynamic pricing decisions for up to 20% of their contracts. A local premium, revised multi-year prices, and the option of a cash advance. Growers within 20 miles of any British Sugar factory will receive a local premium of up to £2, based on distance to the factory. All growers with an existing 2023 commitment will automatically receive an upgrade to £32/t, from £25/t. Growers can upgrade this further to £40/t if they commit to grow sugar beet in 2024.

28/6/2022

European Council

EU Council agrees new rules to drive down deforestation

The Council today adopted its negotiating position (general approach) on a proposal to limit the consumption of products contributing to deforestation or forest degradation. Agnès Pannier-Runacher, French minister for the energy transition, said, "We must ensure that the products we consume at home do not contribute to depleting the planet's forest reserves. The innovative text that we have adopted will make it possible to combat deforestation, within the European Union but also outside of it. This is a major step forward which also illustrates our ambition for the climate and for biodiversity". The Council agreed to set mandatory due diligence rules for all operators and traders who place, make available or export the following products from the EU market: palm oil, beef, timber, coffee, cocoa and soy. The rules also apply to a number of derived products such as leather, chocolate and furniture.

28/6/2022

European Commission

EU agri-food trade balance remains positive

The total value of EU agri-food trade reached a value of €32.6 billion in March 2022, an increase of 12% compared to March 2021 and of 13% compared with February 2022. In March 2022, EU exports of agricultural products reached €18.9 billion, while imports were valued at €13.7 billion, representing increases of 11% and 16% respectively compared with figures from the previous month. The EU continues to benefit from trade of agricultural products with a trade balance of €5.3 billion. These findings were published today in the European Commission’s latest monthly trade report.

25/6/2022

Reuters

German sugar maker Suedzucker to raise prices, shift to coal power, newspaper reports

BERLIN, June 25 (Reuters) - German sugar producer Suedzucker (SZUG.DE) plans "significant" price hikes to offset rising costs and prepares to shift to coal as Russian gas supplies to Western Europe slow in the wake of the Ukraine war, the Mannheimer Morgen newspaper reported on Saturday. "The costs of beet cultivation and energy are rising, and these are two significant blocks of production," Chief Executive Niels Poerksen said in an interview with the newspaper.

25/6/2022

New Scientist

Glycaemic index is a poor predictor of how foods raise blood sugar

People with prediabetes who eat the exact same foods can have very different blood sugar levels. These findings, which were presented at the online American Society for Nutrition conference last week, are the latest to suggest that the glycaemic index (GI) is an unreliable predictor of how foods affect blood sugar levels. The idea behind GI is simple: foods are scored based on how quickly they increase glucose levels in the blood. Those above 70 are high GI foods, meaning they rapidly raise blood sugar levels. Those at or below 55 are low GI foods, meaning they increase blood sugar more slowly. The trouble is, mounting evidence indicates that no two people metabolise food the same. For example, a 2016 study of 63 people found that the GI of white bread ranged from 35 to 103. When the same experiments were repeated, even within individuals, blood sugar responses varied by about 20 per cent.

24/6/2022

LIZ-online

Pleasing picture of vigorous sugar beets in Euskirchen, Germany

Despite the already midsummer temperatures, the majority of the beet populations are currently in a very good condition. The precipitation of the past week has mitigated the effects of the heat and the rainfall expected in the next few days has initially laid a good basis for yield formation. The trial grubbing-up, which begins in July, will show how the stocks will develop. Leaf disease monitoring will start as early as next week in order to detect a possible infestation with Cercospora, Ramularia, rust or mildew in good time and to keep the beet populations healthy through timely fungicide measures.

21/6/2022

ESA via LinkedIn

Eswatini Sugar Association invests E110M in a new Bagging Facility & Warehouse located at Ubombo

Aimed at diversifying into new sugar markets and maximising efficiency, the Eswatini Sugar Association invested E110M into a Bagging Facility & Warehouse located at the Ubombo Sugar Mill in Big Bend. This move will see Eswatini diverting bulk raw sugar to world markets and directing it to regional (African) markets by producing direct consumption sugar that can be bagged per specification required by those markets. The new facility, which was officially opened by the Minister of Labour & Social Security Hon. Phila Buthelezi, has additional 50kg and 1Tonne bagging and storage capacity to bag 50Tonnes per hour.

21/6/2022

European Parliament

New EU social and environmental reporting rules for large companies

MEPs and EU governments struck an ambitious deal on compulsory reporting on environment, social affairs and governance. Sustainability to become a new pillar of businesses’ performance, moving away from focus on short-term profits. EU set to become front-runner in setting global sustainability reporting standards. It will enter into force 20 days after publication and its provisions will have to integrated into member states’ national laws after 18 months.

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