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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26/6/2025
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European Commission - Grok AI summary of documents

EU Sugar Market Outlook for 2025/26: Production Declines, Trade Dynamics Shift

The European Union’s sugar market is poised for a challenging 2025/26 marketing year (October 2025 to September 2026), with a projected decline in production and shifting trade patterns, according to the latest reports from the Expert Group for the Common Organisation of Agricultural Markets. Sugar Beet Cultivation and Production Forecast: The area sown to sugar beets for the 2025/26 season is estimated at 1.351 million hectares, a 10.6% decrease from the 1.512 million hectares in 2024/25. The decline in cultivated area is expected to result in lower sugar production, forecasted at 15.214 million tonnes for 2025/26, down from 16.563 million tonnes in the previous season. Despite the reduced output, sugar beet yields are expected to rise by approximately 4% above the five-year average, reaching 76.3 tonnes per hectare across the EU, driven by favourable conditions in southern Europe and the Baltics. However, disease pressure, particularly in central and southern Germany, where up to 30% of sugar beet crops may be affected by aphid-transmitted diseases, poses a significant risk to yields. Consumption, Stocks, and Trade Dynamics EU sugar: Consumption is projected to remain relatively stable at 13.9 million tonnes, slightly down from 13.96 million tonnes in 2024/25. Beginning stocks for 2025/26 are estimated at 1.997 million tonnes, with ending stocks slightly higher at 2.041 million tonnes, indicating a balanced supply outlook. Isoglucose production is expected to hold steady at 500,000 tonnes. Imports for 2025/26 are forecasted to increase to 2.23 million tonnes, up from 1.48 million tonnes, with 70% expected to be white sugar. In 2024/25, imports reached 413,000 tonnes, primarily from Ukraine (21%), the UK (18%), Mauritius (17%), and Colombia (13%). Notably, Ukraine’s exports to the EU totaled 90,000 tonnes in the first eight months of 2024/25, but new tariff-rate quotas (TRQs) may limit further growth. Exports are projected to decline to 3.5 million tonnes from 4.2 million tonnes, with key destinations including Israel (15%), the UK (12%), and Lebanon (6%). In the EU, agrometeorological conditions are mixed: a persistent water deficit in western Belgium, central France, and eastern Germany threatens spring and summer crops, while excessive rainfall in northern Italy has impacted winter crops. Despite these challenges, positive yield prospects in southern EU countries and the Baltics provide some optimism. Conclusion: The EU sugar sector faces a contraction in 2025/26, driven by reduced beet cultivation and disease pressures, though stable consumption and increased imports should maintain supply. Trade dynamics, particularly with Ukraine, and global price volatility will be critical to monitor as the season unfolds.

29/4/2025
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ABF

ABF Sugar: Low EU and UK sugar prices with high beet costs contribute to operating loss in 2024/25

In Sugar, persistent low European sugar prices and an operating loss in our UK bioethanol business, Vivergo, are impacting overall profitability in 2025. Challenges in Tanzania, due to the overhang of high levels of sugar imports in 2024, and in South Africa, due to drought, are also impacting performance. As a result, we now expect Sugar to have an adjusted operating loss of up to £40m in this financial year. In our Spanish business, Azucarera, the deterioration in market conditions has demonstrated that the cost base is structurally too high. As a result, we are close to completing an operational review, which is assessing a number of scenarios to restructure this business. In Vivergo, the way in which regulations are being applied to bioethanol is undermining the commercial viability of our business. We are having constructive discussions with the UK Government to explore regulatory options to improve the position. There is no guarantee that these discussions will be successful, and we will either mothball or close the Vivergo plant if necessary. The actions we are taking in Azucarera and Vivergo increase our confidence that Sugar profitability can recover over the medium term. The timeframe for recovery in the Sugar segment is longer than we had originally expected due a slower-paced rebalancing of supply and demand in European sugar markets and a delay in the recovery of profitability in Tanzania.

24/2/2025
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ASR Group

Tate & Lyle Sugars Bestowed Royal Warrant from King Charles III

ASR Group is please to share Tate & Lyle Sugars has been granted a Royal Warrant of Appointment by His Majesty King Charles III. This distinguished recognition permits the use of the Royal Arms in connection with our business in the United Kingdom, underscoring the exceptional standards and quality we proudly uphold. A Royal Warrant is one of the highest accolades a business can achieve, steeped in centuries of tradition. Originating in the 12th century, Warrants have been granted by monarchs and senior members of the Royal Family to select businesses that meet rigorous standards. Today, only around 550 companies worldwide hold this special privilege, placing Tate & Lyle Sugars among an exclusive and esteemed group. Previously, we were honored to display a Royal Warrant from Her Majesty Queen Elizabeth II on our UK products for more than 60 years. When Queen Elizabeth died in 2022, we entered the rigorous reapplication process for the new King’s Warrant. “Our success in being awarded a new Royal Warrant reflects the hard work that we all put in to making our business a success,” said Gerald Mason, Tate & Lyle Sugars’ Senior Vice President, Corporate Affairs. “It’s a recognition of the long history that we have in the UK, and our proud 100-plus year history of supplying the Royal Household. Additionally, the Warrant is a reflection on the progress that we have made when it comes to sustainability.”