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AB Sugar revenue was 12% ahead of last year, with operating profit ahead of last year. The revenue increase was driven by stronger European sugar prices, higher Illovo domestic sales and improved pricing for bioethanol produced by British Sugar at Wissington. All businesses have been focused on mitigating the effects of significant cost input inflation, particularly in energy costs. European sugar prices increased over last year as a consequence of low European sugar stocks combined with higher world market prices. Estimates for European sugar production in the 2021/22 campaign are slightly higher with a recovery in yields to more normal levels, supported by good growing conditions. Our UK and Spanish businesses have largely contracted sales for the financial year at these pricing levels. Sugar production in the UK for the 2021/22 campaign is expected to be 1.04 million tonnes, compared to 0.9 million tonnes produced in the last campaign with higher yields more than offsetting the reduced growing area. Energy costs are at very high levels but forward contracts have avoided the impact of these during the first quarter. Preparation for the start of production at the Vivergo biofuel plant in Hull is well advanced. The trading performance in Spain has improved, with higher prices and volumes partially offset by a higher proportion of sugar produced from cane raws. Illovo continued to deliver strong domestic sales in Zambia, Malawi and Tanzania along with a strong contribution from co-products in South Africa. However, there was some disruption to production in Zambia, Eswatini and Mozambique in the period. Contracts have been placed and site works commenced for a major expansion of our sugar production capacity in Tanzania.
France intends to prioritize "reciprocity of trading standards" in trade with the EU – in other words new "mirror clauses" targetting phytopharmaceutical products, carbon leakage and deforestation The French Minister for Agriculture and Food, Julien Denormandie, stated, "Importing products into the European market that do not abide by the EU’s own production standards is inconsistent from every perspective, whether economic, environmental or food-related. Taking action to ensure that standards are reciprocal is a considerable task, and one that is at the top of the French presidency’s priorities". Presenting the French presidency’s priorities in the area of agriculture and fisheries, the Minister stated that these priorities include, on the one hand, the reciprocity of trading standards – in other words, ensuring (chiefly by means of ‘mirror clauses’) that agri-food products imported into Europe abide by the EU’s environmental and health standards, particularly as regards the sustainable use of phytopharmaceutical products – and, on the other hand, low-carbon agriculture, in particular carbon sequestration in agricultural soils. The presidency will also aim to take forward work in the following areas: evaluation of the national strategic plans, as part of efforts to ensure the transparency of the CAP reform; the proposal for a regulation on statistics on agricultural input and output; revision of EU legislation on geographical indications; the regulation on deforestation-free products; and the EU’s agricultural product promotion policy.
ACP/LDC sugar industries wish to see a viable cane refining sector in the UK – they are our major customers after all – but we urge the UK government to assess the true impact that this ATQ is having and implement a policy which recognizes the vital importance of this trade to developing countries
The two factories [Dinteloord and Vierverlaten] together processed more than 6,880,000 tons of beet during this campaign period. Our factory in Germany will continue processing the last beets for a few more weeks.
Defra has today approved an emergency temporary authorisation for the use of a neonicotinoid pesticide treatment on the 2022 sugar beet crop in England only due to the risk to the crop from yellows viruses. Emerging sugar beet seedlings are vulnerable to predation by aphids which have the potential to spread beet yellows virus. Sugar beet crops have been severely affected, with 2020 yields down by a quarter on previous years. Other pesticide and organic treatments are not sufficiently effective in controlling viruses. 63% of the UK’s sugar comes from domestic production of sugar beet which could be at risk if a significant amount of the national crop is infected. The strictly time limited emergency authorisation of this neonicotinoid treatment - Syngenta’s Cruiser SB - will provide emergency protection against this virus, which could significantly impact yields of the sugar beet crop while the beet industry develops alternative solutions. Its exceptional temporary use will be tightly controlled and only permitted in very specific circumstances when strict requirements are met. A Defra spokesperson said: “This decision has not been taken lightly and is based on robust scientific assessment. We evaluate the risks very carefully and only grant temporary emergency authorisations for restricted pesticides in special circumstances when strict requirements are met. “Last year the threshold was not met so the authorisation was never exercised. Strict criteria remain in place meaning this authorisation will only be used if necessary.”
The Sugar segment’s revenue in the first three quarters of 2021|22 grew to € 492.7 million, up 8.8% from one year earlier. In addition to renewed high sales volumes with resellers, there was also a recovery in the industrial customer segment, where more sugar was sold than in the same period last year. While the EBIT result in the first three quarters of 2021|22 was better than in the year-ago period, it remained negative at the nine-month mark, at a deficit of € 13.7 million. This still reflected the fact that AGRANA’s own sugar production had been below average after the pest-related small 2020 harvest, with a resulting lower margin from the necessary compensatory reselling and refining of sugar.
Revenues in the sugar segment rose significantly to EUR 1,969 (previous year: 1,731) million. This growth in revenues is mainly attributable to higher sugar sales revenues since the beginning of the expired 2020/21 sugar marketing year as well as since the beginning of the 2021/22 sugar marketing year. Moreover, higher volumes since the second quarter of 2021/22 also had a positive effect. While the operating loss in the first quarter of fiscal 2021/22 was still significantly higher than in the previous year, the sugar segment was able to return to positive results since the second quarter and achieve a significant improvement compared to the previous year. As a result, cumulative operating result also improved significantly to EUR -10 (previous year: -86) million. The higher sugar revenues were initially offset by higher production costs from the 2020 campaign due to the price of raw materials. Since the third quarter, other cost increases, some of them drastic, for energy, packaging materials and raw materials have had an increasingly negative impact. Positive factors since the second quarter have been the increase in sales volumes and better utilization of production capacities.
Today the Republic of India and United Kingdom have formally launched negotiations for a Free Trade Agreement between our two countries. This announcement has been made by Indian Minister for Commerce and Industry Piyush Goyal and UK Trade Secretary, Anne-Marie Trevelyan, who is in New Delhi for Free Trade Agreement discussions. A India-UK Free Trade Agreement would be a substantial opportunity for both of our economies and a significant moment in the India-UK bilateral relationship. The India-UK bilateral trading relationship is already significant, and both sides have agreed to double that bilateral trade by 2030, as part of Roadmap 2030 announced by the Prime Minister Narendra Modi and Prime Minister Boris Johnson in May 2021. India and the UK will seek to agree a mutually beneficial agreement supporting jobs, businesses and communities in both countries. Trade negotiations will be a priority for both countries, as we build upon the Enhanced Trade Partnership launched by our Prime Ministers in May 2021.
Tereos, the French sugar and ethanol group, has sealed an agreement with grain cooperative Axereal to sell its stake in their malt business and is consulting unions on a plan to close its sugar activities in Romania, it said in a document to investors. Tereos said it was "in the process of consulting employees' representative bodies with a view to present the project of a potential shutdown of its Romanian sugar activities in the context of a pessimistic outlook." "Since its acquisition by Tereos, the Ludus sugar plant in Romania has been facing difficulties mainly due to constant reduction in sugar beet surfaces despite several mitigating actions and has accumulated substantial losses," Tereos said. Reuters reported in June last year that the cooperative group was seeking to exit its loss-making Romanian sugar activities. The Romanian business had 153 permanent employees at the end of September, out of a total 15,000 for the whole group. Tereos has said it aims to focus on its activities in Europe and Brazil. It is the second largest sugar and ethanol producer in Brazil and also has operations in Reunion Island, Mozambique, Indonesia, Tanzania and Kenya.
Plans for the scheme to replace the EU’s Common Agricultural Policy depend on changes in land use that bring both increased farm productivity and environmental benefits, but in a report published today the Public Accounts Committee says Defra itself concedes “its confidence in the scheme looks like blind optimism”. Defra has given no detail about how either the necessary productivity increases or environmental benefits will be brought about, nor how these will offset the new Environmental Land Management Scheme’s dramatic effect on English farmers, who will see their income from direct payments reduce by more than half by 2024-25.
Fitch Ratings has assigned Tereos SCA's (Tereos) planned senior unsecured notes issue an expected 'B+(EXP)' rating with a Recovery Rating of 'RR5'. The assignment of the final instrument rating is contingent on the placement of the notes with final documents materially conforming with the information received by Fitch during the rating process. The notes will be issued by Tereos Finance Groupe 1 (FinCo) and the company plans to use the proceeds for debt-refinancing purposes. The notes are rated in line with other senior unsecured debt that is currently outstanding at Finco, ie one notch below Tereos SCA's 'BB-' Issuer Default Rating (IDR), reflecting their structural subordination to prior-ranking debt at Tereos operating entities and the high share of secured debt within the group's total debt. The 'BB-' IDR of Tereos reflects its resilient market position as the second-largest sugar producer globally with an asset-heavy business model, operations and raw-materials sources spread across Europe and Latin America and a pricing mechanism for beetroot supply that protects profitability from sugar-price swings. Also, it benefits from moderate product diversification and mid-sized scale compared with that of global commodity traders. This is balanced by high leverage that is more consistent with a lower rating category.
World food prices jumped 28% in 2021 to their highest level in a decade and hopes for a return to more stable market conditions this year are slim, the U.N.'s food agency said on Thursday. The Food and Agriculture Organization's (FAO) food price index, which tracks the most globally traded food commodities, averaged 125.7 points in 2021, the highest since 131.9 in 2011. The monthly index eased slightly in December but had climbed for the previous four months in a row, reflecting harvest setbacks and strong demand over the past year. Higher food prices have contributed to a broader surge in inflation as economies recover from the coronavirus crisis and the FAO has warned that the higher costs are putting poorer populations at risk in countries reliant on imports. In its latest update, the food agency was cautious about whether price pressures might abate this year.
The total value of EU agri-food trade (exports plus imports) for January-September 2021 stood at €239.5 billion, a 6.1% increase compared to the corresponding period last year. Exports were 8% higher at €145.2 billion, with imports increasing by 3.5% to reach €94.2 billion. This reflects an overall agri-food trade surplus of €51 billion for the first nine months of the year, an increase of 17% compared to the same period in 2020. For the first time in 2021, agri-food exports to the United Kingdom exceeded their value for the 2020 corresponding period, growing by €166 million or 0.5%. The largest increase in agri-food imports was seen in products from Brazil, which grew by €1.4 billion or 16% compared to the same period in 2020. Sizeable decreases were reported in imports from several countries, the most notable of which was a €2.9 billion or 27% fall in the value of those from the United Kingdom.
Government accused of betrayal after promising to spend 'every penny' on children's health but funds are actually going into general tax pot. The Government has quietly abandoned a promise to spend millions of pounds in revenue from the sugar tax on fighting childhood obesity. When the levy on soft drinks was introduced, ministers promised to spend “every penny” on children’s health and wellbeing programmes. However, the cash has been diverted from specific projects or departments into the Treasury coffers.
EU sugar production in the MY 2021-22 is set to rise for the first time in four years. The 2020-21 crop was especially bad with the ban on neonicotinoids and warmer winter causing a high incidence of virus yellows. The cooler weather in MY 2021-22 has resulted in a lower incidence of virus yellows, with some countries not requiring the use of neonicotinoids even though the ban was temporarily lifted. The expanding rollout of E10 as part of energy transition with countries look to fulfill their green agenda is set to cement ethanol demand in the coming year. With sugar used as a feedstock for ethanol, this could increase industrial demand. The UK changed its standard gasoline specification from E5 to E10, which can contain up to 10% ethanol. E10 was already in use across much of Europe, with France the greatest European consumer of the fuel.
The government’s decision to extend its 260,000t tariff-free quota for raw cane sugar imports for another three years is “devastating news” for UK beet growers, the NFU has said. Michael Sly, chairman of NFU Sugar, said the extension would continue to allow imports of sugar produced to lower environmental standards in ways that would be illegal in the UK. The move, along with the complete liberalisation of sugar after eight years in the UK-Australia trade deal, could lead to the permanent decline of the UK sugar beet industry, he warned. Mr Sly said it was “incredibly concerning” that the government had claimed its decision to extend the sugar cane quota was based on evidence – yet none had been published. “Growers will be left to assume it is the same inconsistent and contradictory justification that was used when the quota was introduced a year ago,” he added.
NFU Sugar has criticised the government’s decision to extend its 260,000 tonne tariff-free quota for raw cane sugar imports for another three years, which will continue to allow imports of sugar produced in ways that would be illegal in the UK. Michael Sly, chair of NFU Sugar, warns that this extension, coupled with the complete liberalisation of sugar in the UK-Australia trade deal, could lead to the permanent decline of the UK sugar beet industry.
The ATQ for raw cane sugar will be extended at its current volume level (260,000 tonnes) until 31 December 2024, the UK government confirmed. The UK government stated it has worked with representative sectoral stakeholders to review existing ATQs, namely: five ATQs for fish products one ATQ for raw cane sugar. This review, which has now concluded, allowed us to make an evidence-based judgement on the future of our ATQs, the government said. The outcome will continue to ensure that ATQs meet the needs of UK businesses and consumers. The ATQ for raw cane sugar will be extended at its current volume level (260,000 tonnes) until 31 December 2024. It will be reviewed ahead of that date.
Biscuit lovers are about to experience a new credit crunch – with prices of the teatime snack set to soar. Leading manufacturer McVitie’s has warned customers to brace themselves for price hikes across their range, which includes Jaffa Cakes, Penguins, Hobnobs and the best-selling chocolate digestives. Parent company Pladis Global, which also makes Jacob’s and Carr’s crackers and the Go Ahead range fruit bars has warned that a combination of problems means rises are inevitable. They include increased prices for ingredients such as wheat, higher labour costs and Covid-related staff absences.
As 2021 draws to a close, Michael Sly, Chair of NFU Sugar, considers what lies in store for 2022. NFU Sugar has a number of continuing priorities in 2022. First and foremost is the continued drive to secure contract prices for growers that account for the increased risks and costs of growing sugar beet, and offer returns that compare favourably with other land use options. Risks and rewards We will push forward the uptake of the innovative futures contract, which allows growers greater access to the risks and rewards in the sugar market; we see this model becoming more common across the EU and are proud to have developed it first for UK beet growers. We will continue to help growers manage the significant disease pressures they face – through access to necessary plant protection products, biological methods and (longer term) gene edited technologies.
CANE farmers say the official signing of the Australia-UK Free Trade Agreement signals new new trade opportunities. Canegrowers chief executive officer Dan Galligan said the Aus-UK FTA would take the Australian sugar industry a step closer to rebuilding what had once been a strong trading relationship with the United Kingdom, after a 50-year hiatus. Once the FTA comes into force it will give up-front tariff-free access for 80,000 tonnes of Australian sugar to be sold to the UK in the first year, increasing by 20,000 tonnes each year for the next eight years. "This is a huge boost on the 9925 tonnes quota we had for the whole of the European Union prior to Brexit," Mr Galligan said. "The Australian industry looks forward to supplying high quality, sustainably and ethically produced sugar to top up local beet sugar production so that UK refiners can meet the country's needs. "The signing of this FTA is the second piece of good trade news this week and it's bolstering the spirits of growers working in a number of regions to finish harvesting the 2021 crop after a difficult season." Earlier this week the World Trade Organisation found in favour of Australia in its dispute with India over that country's price supports for sugarcane and export subsidies. "While markets in the Asia-Pacific region will continue to be the main focus of Australia's sugar sales, this Aus-UK FTA will allow for some important diversification for our export-oriented industry which relies on a fair and rules-based world trading system," Mr Galligan said. "We thank the Australian government for achieving these results."
This sensitive goods document lists the goods which can be declared as sensitive for the purpose of Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 and the Taxation Cross-border Trade (Special Procedures Supplementary and General Provision) (EU Exit) Regulations 2020.
The UK has signed an historic trade agreement with Australia, our first from scratch since leaving the EU, setting new global standards in digital and services and creating new work and travel opportunities for Brits and Aussies. The deal was agreed in principle by the Prime Minister and Australian Prime Minister Scott Morrison in London in June, and negotiators have now finalised all chapters of the agreement. The final deal was signed in a virtual ceremony by International Trade Secretary Anne-Marie Trevelyan on Thursday night, and will now be laid in Parliament for a period of scrutiny.
The 2021/22 campaign is expected to deliver average sugar beet yields in excess of 80 t/ha, a significant increase on 2020, due to ongoing developments in seed technology and genetics, a good growing season, and near-perfect conditions for crop recovery. “The 2021 sugar beet crop started with a delayed drilling window followed by a prolonged cold weather front delaying establishment, but it has shown great resilience,” said Andrew Dear, Head of Agriculture (Bury and Cantley) and National Seed Manager. “When we reached June the weather warmed up and the crop motored all the way through the summer.” “We’re seeing good root weights and as we move through campaign, particularly in the past few weeks of harvest, the sugar percentages are continuing to rise,” explains Andrew. “This is mainly due to the mild weather; and we haven’t had rain in excess, which has led to good growing conditions.” Lifting conditions have been good, too. “We have had almost perfect harvesting conditions, which means the crop recovery is a lot better,” he adds. British Sugar is expecting this year’s crop to reach around 80t/ha. “It’s looking really promising at the moment with a reversion to normal yields,” said Andrew.
The Commission has fined the Spanish company Abengoa S.A. and its subsidiary Abengoa Bionenergía S.A. (together ‘Abengoa') € 20 million for participating in a cartel concerning the wholesale price formation mechanism in the European ethanol market. Abengoa admitted its involvement in the cartel and agreed to settle the case. The port of Rotterdam and the Amsterdam-Rotterdam-Antwerp barge market are the most important trading locations for ethanol in Europe. S&P Global Platts (‘Platts'), a company that provides price assessments for different commodity markets, takes the trading activity in this area into account in its assessment process for establishing its ethanol benchmarks, which are used as reference prices in the industry. To establish its benchmarks, Platts uses a price assessment process called ‘Market on Close' (‘MOC').
Raw sugar prices on ICE will be in a range of 18 to 20 cents per pound in 2022, broker StoneX estimated on Wednesday, saying larger production from key countries and a less urgent demand would limit the upside. Despite projecting a third consecutive global supply deficit in the 2021/22 season, which runs from October to September, at 1.8 million tonnes, the brokerage said during an outlook seminar organized by Sugaronline that higher production in India, Europe and Thailand, and a better outlook for the new Brazilian season, would cap prices.