News and views

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6/6/2023

FoodIngredientsFirst

Was sugar underpriced? Soaring costs pinned on perfect storm of inflationary pressures

Inflation has caught up with the sugar sector, which is dealing with similar problems to the general food industry, such as high fertilizer prices, increased supply chain costs and El Niño storms. After an apparent slumber for sugar prices in 2022, when prices barely increased, 2023 has been a year of sudden rise for the commodity costs. “Sugar has over the past years been an under-priced product making up a small proportion of the total value of processed sugar products. In a sample of supermarket products undertaken by the European Association of Sugar Manufacturers (CEFS), in February 2023 prices sugar accounted for just 3% of the sales price of own-brand ice cream and 7% of the sales price of own-brand waffles,” Josh Gartland, deputy director general of CEFS, tells FoodIngredientsFirst.

6/6/2023

Nordzucker AG

Nordzucker - EU market update

Nordzucker has successfully completed sugar production from sugar beet and sugar cane at all its factories in the seven European countries. Yields are behind the 5-year average due to heat and drought in many regions. Thus, beet sugar production has been almost 10% below previous year and the gap has been largely covered by processing raw cane sugar in our refineries in Finland and Poland. In Germany, Denmark and Lithuania, organic beet was again processed into organic sugar in the first days of the campaign. Sowing is now complete for the new season in all our countries. The period of drilling the beet seeds was repeatedly interrupted by rainfall and thus extended over an unusual long period. The sugar beet development varied accordingly and was delayed by an average of 14 days compared to previous years. In Lithuania, about 80 hectares had to be re-drilled after frost nights. Late sowing does not necessarily lead to lower production, but it is certainly not helpful.

2/6/2023

FoodIngredientsFirst

EU soft drinks manufacturers slash sugar content by 7.6% but call for packaging regulation changes

Aiming to create a healthier beverage system in Europe, the Union of European Soft Drinks Associations (UNESDA) is embarking on a sugar-reduction mission. The association remarks that the sector delivered a 7.6% reduction between 2019 and 2022, including a 4% reduction last year. “As a sector, we remain committed to making significant progress on our many EU Code of Conduct commitments. We have achieved impressive results in our health and nutrition actions and, in particular, in our sugar reduction, marketing and advertising practices and school policies,” says Ian Ellington, president of UNESDA and senior VP and CMO of PepsiCo in Europe. Ellington says that UNESDA is on track to meet its commitment to reduce the average added sugar in its beverages by another 10% between 2019 and 2025 (in the EU and UK). He pinpoints the success of the sector’s reformulation efforts “success” by using low and no-calorie sweeteners. For further information, see: https://www.euractiv.com/section/agriculture-food/opinion/eu-policy-support-is-pivotal-to-industrys-ability-to-offer-more-sustainable-packaging-and-support-healthier-lifestyles/

1/6/2023

Reuters

Sugar group Tereos posts record core profit but cautious for 2023/24

Tereos posted record annual sales and earnings on Thursday supported by high prices but the French sugar and ethanol group expressed caution regarding the sugar beet crop and strength of demand in 2023/24. Tight global supplies sent global sugar futures to 11-1/2 year highs in April while European prices were reaching record levels. The company attributed the results to market momentum and an increase in prices across all its segments - sugar, alcohol, ethanol, sweeteners and electricity - strict cost control and well executed hedging strategies. These factors helped the group, one of the world's largest sugar and ethanol producers, contend with significant increases in raw material and energy prices, it added. A further expected rise in sugar prices would support Tereos' business in 2023/24 but it was too early to forecast improved results, incoming Chief Executive Jorge Boucas told Reuters. "There is a positive trend but there is uncertainty about our customers' sales. We must be careful about consumption which can have an impact on the markets," he said. The final volume of the European sugar beet harvest which is threatened by delays, pest attacks and weather, also made it difficult to predict the upcoming season, Commercial Director Olivier Leducq said.

31/5/2023

Reuters

Delays in EU beet sowing threaten to slow sugar output recovery

Widespread delays in sowing due to wet weather and potential pest attacks in France are threatening to limit an expected rise in the European Union’s sugar output this year after farmers were encouraged to plant more by high prices, producers said.

22/5/2023

European Commission - JRC MARS

An EU sugar beet yield penalty seems unavoidable given late sowing this year - JRC MARS

This season sowing of sugar beet was much delayed in many production regions including NE France, Germany and Poland due to wet conditions and below-average temperatures. The relatively cold weather and low level of solar radiation were also sub-optimal for early season development. Such significant delays are expected to have a negative impact on yield potentials. The extended sowing times resulted in uneven crop development across the regions. In Benelux, JRC notes that emergence has been fair but a yield penalty seems unavoidable, as canopy closure will be too late to optimally benefit from the long days in June. Aphid infections have already been reported in several regions, and require careful monitoring and control.

19/5/2023

Christopher Snowdon (via Substack)

Artificial sweeteners and the World Health Organisation

On the face of it, the simple fact that artificial sweeteners contain no calories should make them a better option, but there is an argument - as made by Mr Trump - that they increase appetite and make people eat more. Despite all the money pumped into public health research, neither of these hypotheses has been comprehensively proven or disproven. After decades of work, this field of research still feels like it is in its infancy. This wouldn’t matter so much if public policy wasn’t based on the shifting sands of quack science. If the WHO’s latest guidelines are correct, sugar taxes designed to encourage drinks manufacturers to replace sugar with sweeteners have been a waste of time and possibly even a deadly mistake. If they are wrong, it’s another reason to defund the corrupt and incompetent WHO.

16/5/2023

Agreste

Sugar beet area in France now estimated 5.3% lower than last year - Agreste

As sugar beet sowings are finishing (at last), the French ministry of agriculture (Agreste) estimates the area sown in France in 2023 at 380,000 ha, down 5.3% compared to 2022 and down 11.8% compared with the 2018-2022 average. The drop is more limited in Hauts-de-France (-5%) and in the Grand-Est (-2%) where sugar beet is one of the most important arable crops. Agreste also forecasts the maize acreage will fall sharply in 2023 compared to 2022, both grain (-7.6%) and seed (-7.4%) and fodder (-4.2%), with grain maize areas estimated at 1.3 million hectares (Mha), the lowest for more than thirty years. However, sunflower areas should progress slightly (+0.8%) and should reach 0.9 Mha, a record since the end of the 1990s. All in all, spring cereal areas should decrease for the second consecutive season, whilst the areas of winter cereals (common wheat, winter barley) have increased, and whilst those of oilseeds and protein crops would also increase.

9/5/2023

gov.uk

Australia UK sugar quota to open on 31 May 2023

The UK/Australia tariff-free sugar quota will be opened for a pro-rated quantity of 26,959 tonnes on 31 May 2023 until 30 September 2023, and thereafter increasing to 80,000 tonnes in 2023/24, 100,000 tonnes the next year, and then increasing by 20,000 tonnes per annum until sugar trade is fully liberalized after eight years. The sugar quota is open to all qualities of sugar, white and raw, under CN codes 1701.13; 1701.14; 1701.91; and 1701.99.

4/5/2023

Le Betteravier Français

The aphids have arrived!

The threshold for treatment against aphids was reached south of Paris, in Eure, Val d'Oise and Champagne. With rising temperatures, flightless green aphids are appearing in several departments. This is the case in the Val d'Oise, Eure and Sarthe, the south of Paris and Champagne. The treatment intervention level is reached in these regions: 10% of plants with at least 1 or 2 wingless green aphids, from the 2-leaf stage of beets. On the other hand, the threshold has not been crossed in the Somme or Nord-Pas-de-Calais, "The conditions are not very favorable to a presence of Myzus Persicae," says ITB Somme. "We must remain alert," said Benoît Carton, regional director of CGB Normandie.

3/5/2023

Bloomberg

EU Wants More Commodity Trading Scrutiny After War Exposed Risks

* Lawmakers to review regulatory exemption for commodity trade * Industry is facing calls for more oversight from regulators. For decades, Europe’s commodity traders have avoided being regulated on par with other financial firms. A new proposal currently working its way through the European Union legislative system could change that. As part of a package updating its landmark MiFID II regulations on financial markets, the European Parliament has proposed to review its “ancillary activities exemption”, according to position documents seen by Bloomberg.

28/4/2023

Eurostat

EU sugar prices increased by 61% in the EU over one year

With food prices increasing substantially over 2022, sugar has been one of the food products with the highest price hike. Monthly data indicates a continuous increase in the annual rates of change starting August 2021, reaching 61% in February and March 2023, meaning that sugar prices in the EU in those two months were, on average, 61% higher than in the same months of 2022. The annual rate of change for March 2022 was almost six times lower (11%), and the difference is even more sizeable two years back, in March 2021, when the rate was 1.6%.

28/4/2023

Reuters

EU countries agree to extend import tariff suspension for Ukraine

EU governments agreed on Friday to extend by a year the suspension of duties and quotas on imports from Ukraine to help its economy during the war with Russia. Sweden, which holds the six-month rotating EU presidency, said EU ambassadors had agreed to the extension at a meeting on Friday. The European Union lifted tariffs for an initial 12 months in June 2022. The suspension of all duties has led to complaints from farming groups, culminating in Poland and Hungary banning some Ukraine grain imports earlier this month.

24/4/2023

JRC MARS Bulletin

Cold and rainy conditions delay sugar beet sowing in the main production regions

In France, Belgium and the Netherlands, early sowing started at the beginning of March, but sowing progressed extremely slowly due to frequent rains and overly wet soils. In France, by the end of March only 8% of fields were sown, whereas in the Netherlands by mid-April less than 10% of sowing progress was reported. In an average year, well over 50% of the sowing would have been accomplished by these dates. Such significant delays are expected to have a negative impact on yield potentials. In Germany the early sowing was reported during the second dekad of March but sowing activity gained in intensity at the end of March and during the first half of April, delayed compared to last season due to prevailing rainy conditions, especially in the important sugar producing regions of north-west Germany. Likewise, in Poland the sowing campaign started on time in mid-March but has been progressing slowly due to periods of low temperatures (end of March, beginning of April), and rainy conditions that have hampered field works. The sowing campaign accelerated during the first half of April with an onset of more favourable conditions, and should be finalised by the end of the month (slightly delayed compared to previous years). The conditions for early development of seedlings are favourable. In Czechia, Slovakia and Austria, conditions were generally favourable for sowing. In Hungary, the sowing campaign that started on time in late March subsequently slowed due to a cold and wet spell. In Türkiye, the sowing campaign has just commenced under generally favourable conditions.

24/4/2023

Bloomberg

British Sugar is turning to alternative suppliers, including rival producer Tate & Lyle Sugars, to fulfill contracts after a poor harvest led to shortages

British Sugar is turning to alternative suppliers, including rival producer Tate & Lyle Sugars, to fulfil contracts after a poor harvest led to shortages. The incredibly rare step by the UK’s only processor of sugar beets - the type of crop grown there - comes after last summer’s drought and winter frost hurt output across Europe.

21/4/2023

Caobisco - Chocolate, Biscuit and Confectionery Industry Association

Caobisco calls for urgent EU measures to tackle loss of competitiveness due to the current sugar market situation

This is a call for urgent political action. Sugar users of the European food and drink industry are suffering from the European sugar market situation and losing competitiveness day by day. The EU sugar supplies are tightening consistently, and the high-risk unfavourable scenario keeps on repeating itself: sugar supplies between agricultural years (Oct-Sep) are so low that the most vulnerable sugar users (SMEs) face critical shortage situations leading to dramatic economic consequences, such as factory closures and job losses. The ending stock forecast for current agricultural year 2022/23 shows sugar levels available for users at 552,000 tonnes, which represents less than 2 weeks of EU sugar users’ overall consumption.

20/4/2023

Le Betteravier Français

French sugar beet sowings are behind schedule - Le Betteravier Français

Despite several episodes of rain interspersed sowing, 75% of the areas were sown by April 19, i.e. 180,000 ha.

18/4/2023

Euractiv

European Parliament backs EU carbon market overhaul, world’s first CO2 tariff

The European Parliament on Tuesday (18 April) approved sweeping reforms to make EU climate change policies more ambitious, including an upgrade of the bloc’s carbon market that is set to hike the cost of polluting in Europe. Europe’s carbon market forces power plants and factories to buy CO2 permits when they pollute. It has slashed those sectors’ emissions by 43% since 2005 but is facing a revamp to hit more ambitious EU climate change targets. Parliament voted to approve, with a large majority, a deal agreed last year by negotiators from EU countries and Parliament to reform the carbon market and cut EU emissions by 62% below 2005 levels by 2030.The laws still need final approval from EU countries, who will assess them in the next few weeks. That approval is usually a formality that waves through pre-agreed deals – but the process was upended last month when Germany lodged last-minute opposition to another policy to phase out fossil fuel-powered cars.

17/4/2023

Reuters

Slovakia approves ban on some Ukraine farm products, maintains transit

Slovakia's government banned the import of grains and other farm products from Ukraine on Monday, but will keep borders open for transit to third markets, Agriculture Minister Samuel Vlcan said on Monday. Vlcan did not present the full list of farm products and food, but a proposal for Monday's cabinet meeting included wheat, rye, barley, oats, corn, sugar beet and sugar, wine, fruits and vegetables, sunflower seeds, rapeseed, honey, and others. Vlcan said Slovakia was pushing for the creation of a European mechanism to buy Ukrainian products in Ukraine and ship them outside the European Union.

13/4/2023

Royal Cosun

Limited progress for Dutch sugar beet sowings - a very late sowing date is expected - Cosun

Last week, some beets were sown in the Netherlands in dribs and drabs, especially on higher-lying plots. Nationally, more than 6,000 hectares have now been sown, which means that approximately 7% of the area has been sown. An exception to this is Oldambt, where almost 90% of the area was sown last week. In addition to the ability of plots, manure spreading is also a limiting factor. It is a great challenge for contractors to be able to help their customers on the limited workable days, now that the spreading of manure for different crops comes together. With the precipitation expected this week, we are heading for an average sowing date that will be after April 20. This has never been this late in the last 20 years. The years 2008 and 2018 are in it with an average sowing date of April 16 the last. With a further average course of the growing season, this later average sowing date costs approximately 750 kg of potential sugar yield per hectare.

12/4/2023

Agreste

French sugar beet plantings to fall 4.9% - Agreste

The French Agriculture Ministry estimates that sugar beet plantings in 2023 will fall 4.9% from last year to 382,000 hectares, 11.5% below the five-year average. Sugar beet growers had earlier anticipated a steeper (7%) decline in planting due to a ban on a pesticide treatment for seeds. Industrial sugar beet areas, would fall below 400,000 ha threshold for the first time since the removal of sugar of quotas in 2017. The areas should remain almost stable in Normandy (+0.1%) but should decrease in the other producing regions, and more particularly in Île-de-France (-15.0%) and Centre-Val de Loire (-15.4%). The drop is more limited in Hauts-de-France (-4.1%) and in the Grand-Est (-1.8%) where beet areas are more important.

12/4/2023

Ethanol Producer

Beyond the ‘Food vs. Fuel’ Dichotomy: The Facts On Biofuels and Food Security in Europe

The EU does not have to choose between its climate, energy and food security goals when it has a pragmatic, proven, homegrown solution that is already delivering results and could do much more with the right approach. European biorefineries produce sustainable biofuels from cereals, sugar beet, wastes, and residues, and simultaneously generate food and feed co-products essential for the food chain, including important protein by-products that offset the need to import such commodities.

8/4/2023

Eastern Daily Press

British Sugar boss looks ahead after 'difficult' beet season

British Sugar bosses are optimistic about larger crop areas, better weather and factory improvements this year after East Anglia's beet growers completed a "difficult" 2022/23 campaign.

6/4/2023

Ukrinform

Ukraine’s sugar exports grow almost fivefold - Ukrtsukor

In the current marketing year (September 1, 2022 to March 28, 2023), Ukraine exported 265,000 tonnes of sugar, which is 4.8 times more than in the previous marketing year. Ukrinform reports this with reference to the press service of the Ukrtsukor National Association of Sugar Producers of Ukraine. "As of the beginning of the war, the export of sugar from Ukraine was banned due to the start of hostilities. However, on June 5, 2022, the Cabinet of Ministers of Ukraine approved a resolution to allow sugar exports under licenses issued by the Ministry of Economy of Ukraine. In the 2021/2022 MY, 55,000 tonnes of sugar were exported. From September 1, 2022 to March 28, 2023, Ukraine increased exports by 4.8 times, to 265,000 tonnes," said acting Ukrtsukor Board Chairman Nazar Mykhailovyn.

4/4/2023

Farmers Weekly

UK sugar beet growers set for April rush to get crop drilled

Sugar beet growers are set to have a busy Easter as better forecast weather will see them trying to catch up on beet drilling, with only 5% of the national crop drilled in the wettest March in England for more than 40 years.

1/4/2023

British Beet Research Organisation

British Sugar issues new early lifting beet contract in response to reduction in supply

In March British Sugar issued a new early lifting beet contract, as a response to the reduction in supply from the 2023 campaign. Dan Green explains the detail behind this initiative.

30/3/2023

British Sugar

British Sugar invests in gene editing in sugar beet to target virus yellows

British Sugar has invested in a collaboration with agricultural biotechnology company Tropic to explore how gene editing can be used in sugar beet to target Virus Yellows, thus protecting crop yields sustainably and reducing the need for pesticide use on the crop. The project will use Tropic’s proprietary GEiGS® (for Gene Editing induced Gene Silencing) technology platform, to make minimal and precise gene edits in sugar beet, enabling the crop to have natural and durable genetic resistance to Virus Yellows.

30/3/2023

European Commission

European Commission forecasts EU sugar beet area will decline by 3% compared with the 5yr average

The EU Court of Justice’s preliminary ruling in January 2023 on the derogations to the use of neonicotinoid substances is due to impact planting decisions, and the EU sugar beet area in 2023 is forecast to drop 3% below the 5-year average to 1.455 million ha. Sugar beet yields are expected to be in line with the long-term average at 77 t/ha, resulting in a sugar beet production of around 111 million t. EU sugar use for bioethanol production in 2022/23 is expected to decrease by 0.1 million t to 0.6 million t, as other feedstock alternatives, like cereals, become more competitive. Similarly, demand for sugar in other industrial applications is expected to decline. Nevertheless, the lower demand for sugar use is expected to be less pronounced than the decline in availability. EU sugar ending stocks are therefore forecast to decrease slightly by 0.1 million to 1.4 million t in 2022/23.

29/3/2023

@abfinvestor via Twitter

Costco imposes rationing on sugar for their customers

Costco imposes rationing on sugar, @abfinvestor says on Twitter. A sign in a Costco warehouse apparently limits customers to purchasing a maximum of 45kg in 1kg bags or just one 5kg bag each.

28/3/2023

British Retail Consortium

Rising cost of sugar coupled with high manufacturing costs left customers with a sour taste

Shop price inflation has yet to peak. As Easter approaches, the rising cost of sugar coupled with high manufacturing costs left some customers with a sour taste, as price rises for chocolate, sweets and fizzy drinks increased in March. Fruit and vegetable prices also rose as poor harvests in Europe and North Africa worsened availability, and imports became more expensive due to the weakening pound. Food price rises will likely ease in the coming months, particularly as we enter the UK growing season, but wider inflation is expected to remain high.

24/3/2023

European Commission

European Sugar Industries (CEFS) and Unions (EFFAT) call for "mirror clauses" in EU sugar trade

The European Association of Sugar Manufacturers (CEFS) and the European Federation of Food, Agriculture and Tourism Sectors Trade Unions (EFFAT) call for all third country sugar entering the EU market to comply with: all relevant international conventions on labour, social rights and the environment; EU legislation and EU standards of production, mainly on chemicals and plant protection products, nutrients management and water management; and corporate due diligence and corporate accountability.

18/3/2023

Eastern Daily Press

East Anglia drought risk forces farmers to switch to sugar beet

East Anglian farmers are cutting back on "high-risk" irrigated crops like potatoes, onions and carrots this year in response to the growing threat of a second summer drought. North Norfolk grower Tony Bambridge, who chairs the National Farmers’ Union’s regional board for East Anglia, is reducing his potato area by about 10pc, and replacing it with less risky sugar beet, for which prices have risen in recent years.

15/3/2023

Reuters

S&P Global cuts 2023/24 EU sugar output forecast as pesticide ban bites

S&P Global Commodity Insights has cut its 2022/23 forecast for sugar output in the European Union plus United Kingdom by 570,000 tonnes to 16.8 million, citing the impact of a recent pesticide ban. The outlook still represents growth of 1 million tonnes versus the 2022/23 sugar crop. S&P Global said in an industry note seen by Reuters it now expects the sugar beet planted area in leading EU producer France to shrink by 7% in 2023/24. Overall though, it sees the beet planted area in the EU plus UK rising 1%, though this forecast has also been lowered following the ban.

15/3/2023

The Grocer

UK retail sugar prices continue to mount after hitting 10-year high

Sugar prices saw further hikes this week after reaching a 10-year high in January. Morrisons and Lidl hiked the price of Silver Spoon and own-label sugar respectively last week, according to the KVI tracker, with a 1kg bag of sugar now costing 99p at both retailers, up 52% in a year. All major retailers have raised the price of sugar in the past six months due to a series of global price pressures. The average supermarket price of sugar hit £1.06/kg in January, according to the official Retail Price Index (RPI) - a 10-year high. These record sugar prices have been driven by several factors. In Europe, the sugar beet crop is the smallest in 20 years, largely due to poor weather and a ban on pesticides, said Darren Peters, VP sales & marketing at Tate & Lyle Sugars. World sugar prices are also now at a record high, with sugar prices having doubled in the past two years, Peters added. Last month, global sugar prices lept 7% to $0.45/kg in February, according to the World Bank. This is partly due to lower worldwide production. Brazil is the largest sugar producer globally and suffered from poor weather during its planting season, said Barry Callingham, chairman of The Sugar Association of London.

8/3/2023

Tereos

Tereos announces a project to reorganise its industrial operations in France

In response to the challenges of decarbonization and modernizing its infrastructure, Tereos has announced a project to resize its industrial footprint in France. The project includes an end to sugar operations at Escaudoeuvres, closure of an alcohol distillery at Morains, and the sale of its potato starch operations at Haussimont.

2/3/2023

BBRO

UK sugar beet growers will have access to Cruiser SB neonicotinoid seeds this season

The virus yellows forecast was released on 1st March. It is important to remember that this forecasts the proportion of the crop that is expected to show virus yellows symptoms in the absence of any control measures. It is a national forecast based on a 30th March sowing date. The forecasted incidence of virus yellows for 2023 is 67.5%. The date of the first arrival of aphids in crops in 2023 is forecasted from 22nd April. The forecasted virus level is above the threshold of 63% required to trigger the use of Cruiser SB on seed in 2023. In 2020, the forecast was 85% with a first arrival date of aphids of 24th March. Last year, the forecast was 69% with an expected aphid flight date of 18th April.

2/3/2023

Lower EU sugar production and higher prices are foreseen

Dr Fred Zeller, General Manager of SZVG, the majority shareholder of Südzucker AG, discussed perspectives for European sugar beet and sugar production at the Dubai Sugar Conference this week. Weather extremes, increasing costs, pests and deseases as well as political framework will lead to limited sugar production in Europe and increasing sugar prices.

28/2/2023

Reuters

French sugar beet area to shrink to 14-year low, growers say

The French sugar beet crop area is set to fall to a 14-year low this year despite high prices, with farmers deterred by potential crop damage because of pesticide restrictions, the head of beet growers group CGB said on Tuesday. Based on seed purchases, farmers are expected to sow 6-7% less in 2023 than the previous year, CGB Director General Nicolas Rialland told Reuters at the Paris farm show. A 6% fall would bring the area sown with sugar beet, mostly used to make sugar and ethanol, to 378,000 hectares for its lowest since 2009, official data showed. The crop area was 402,000 hectares in 2022.

28/2/2023

just-food

Germany proposes junk-food advertising restrictions

Lawmakers in Germany have proposed tightening regulations on junk-food advertising “to protect children’s health”. Adverts aimed at under 14s for food and drinks containing “too much” sugar, salt or fat should be banned, the Federal Ministry of Food and Agriculture (BMEL) said. Suggestions include banning junk-food adverts between 6am and 11pm across social media, outdoor and television marketing. Food and Agriculture Minister Cem Özdemir said the proposals have the backing of a “broad social alliance” which “emphatically demands comprehensive regulation”. However, the German Food Association said it “sharply rejects” the government’s claims food companies are profiteering from “ruining children’s health”. It criticised the definition of what would be banned, claiming it was unclear and could encompass 70% of food product adverts. It also argued there are “no reliable scientific studies on the effectiveness of advertising restrictions on overall nutrition and the development of childhood obesity”.

27/2/2023

Associated British Foods

Adjusted operating profit for AB Sugar is expected to be well ahead of the same period last year.

AB Sugar traded strongly in the first half with revenues expected to be some 26% higher than the same period last year due to higher sugar prices in Africa and Europe and an increase in bioethanol sales following the recommissioning of Vivergo. The adjusted operating profit margin at AB Sugar is expected to reduce as the contribution from higher sugar and coproduct prices was more than offset by the impact of higher energy costs and, for Vivergo, also higher wheat costs which led to a loss in the half year. Adjusted operating profit for AB Sugar is expected to be well ahead of the same period last year. European sugar prices continued to improve over last year as a result of lower European sugar production. Estimates for EU sugar production in the 2022/23 campaign are now some 10% lower than last year due to lower yields caused by adverse weather and a smaller growing area. Both European and world sugar prices remain high. Our UK and Spanish businesses have largely contracted sales for the year at these improved prices. UK sugar production for the 2022/23 campaign is still expected to be 0.74 million tonnes, down from 1.03 million tonnes from the last campaign. This fall in production reflects lower beet sugar yields following unusually adverse weather conditions. British Sugar has moved swiftly to secure alternative sources of supply and is working with customers to ensure continuity of supply. Energy cost inflation has been significant even though mitigated by government support. The shortfall in UK sugar beet production will result in much lower profitability at British Sugar in the second half.

25/2/2023

AgroNews (Poland)

Poland record the highest yields per hectare in 5 years in 2022/23

On January 31, 2023, the 2022/2023 sugar campaign ended, the results of which were summarized by the Association of Sugar Producers in Poland. The average duration of the campaign for all four domestic producers was almost 108 days, during which 2,007,588.06 tons of sugar were produced. Compared to the previous year, the average crop size and yields increased, exceeding 63.5 tonnes per hectare. In turn, the polarization of beetroot was lower than a year ago and amounted to 16.5%. Relatively high yields of sugar beet per hectare failed to compensate for the smaller amount of processed beets than in the previous year and the polarization lower by nearly one percentage point. As a result, domestic producers produced less sugar than during last year's campaign - comments Michał Gawryszczak, Director of the Office of the Association of Sugar Producers in Poland.

24/2/2023

Datamar

Sugar Shipments Back to Port of Santos’ spotlight

Sugar was the cargo that stood out the most at the Port of Santos in January, up 37.2% year-on-year, totaling 1.2 million tonnes. The commodity was the highlight among export cargoes, accompanied by corn, which also performed well, totaling 1.4 million, a growth of 43.2%. The performance of these goods increased the movement of solid bulk by 0.9%. The overall movement in January was 10.1 million tonnes, a 4.7% decrease from the same month last year (10.6 million tons) when the January historical record was set. The drop was primarily caused by a 51% decrease in shipments from the soy complex and a 17.8% decrease in fertilizer arrivals. As a result, January/2023 is the second-best January result in the port’s history.

23/2/2023

European Commission

Commission proposes to renew trade benefits for Ukraine for a year

The European Commission proposes to suspend import duties, quotas and trade defence measures on Ukrainian exports to the EU for another year. This is a "continuation of the EU’s unwavering support for Ukraine’s economy", the Commission stated. The main objective of these autonomous trade measures (ATMs) is to support Ukraine, but the measures are also mindful of EU industry concerns. To this end, and considering a significant increase in imports of some agricultural products from Ukraine to the EU in 2022, the renewed ATMs contain an expedited safeguard mechanism to protect the Union market if necessary. The proposal will now be considered by the European Parliament and the Council of the European Union with a view to ensuring seamless transition from the current regime of ATMs to the new one.

22/2/2023

Les Echos

Tereos: the sugar group's debt soars

Tereos' net debt jumped 22% after the first nine months of its fiscal year. It amounted to €2.9 billion for a turnover of €4.7 billion over the period. The world's fourth largest sugar producer indicates that this evolution is due to "the sharp rise in raw materials and energy, which has mechanically led to an increase inworking capital requirements and impacted the level of debt. This impact will persist into the fourth quarter." The cooperative group warns that at the end of the 2022-2023 fiscal year, net debt will be up compared to the end of March of the previous year. Debt reduction is, however, a priority objective for Tereos. The beet growers who overturned the management in 2020 had made it a major grievance. Since then, the sugar giant has sold several activities with the stated aim of reducing the weight of this debt. Tereos sold its starch division in September 2021 in China, then it divested itself of its assets in Mozambique and finally, in early February, the Ludus sugar factory in Romania. The group said it had issued a new bond issue on January 24 for 350 million euros, in order to improve its financial structure while extending the maturity of its debt.

22/2/2023

National Farmers Union

NFU23: Sugar Beet – what can gene editing do for us?

With the Genetic Technologies (Precision Breeding) Bill having almost completed its parliamentary progress, the NFU23 sugar breakout session looked to the opportunities of GE (gene editing) for the homegrown beet crop. NFU Sugar Board Chair Michael Sly said the technologies should be viewed with optimism, after a year in which a catalogue of extreme weather was capped by the emergence of beet moth. East Anglia Regional Director Zoe Leach reiterated the timeliness of the Bill, while Dr Penny Hundleby, of the John Innes Centre, underlined the similarities between GE and traditional breeding techniques – and the differences. Both produce traits that could have occurred naturally, she stressed – unlike ‘GM’ which results in DNA being moved from other species – but GE can do in a matter of months what might otherwise take many years.

21/2/2023

Nieuw Oogst

New approach should bring peace back to French beet growers

A week after the protests, French Agriculture Minister Marc Fesneau sat down with the beet sector to present the principles of a support and action plan. This should ensure adequate beet production by 2023 and the supply of the French sugar sector. The plan stipulates that France will ensure that the Court of Justice's decision is applied in the same way in all EU countries, in order to ensure a level playing field. Fesneau also asked the Agriculture Council in Brussels to trigger a safeguard clause to prevent imported products from outside the EU from coming from beets treated with neonics. The second objective of the support and action plan is the rapid introduction of new plant protection measures, based on the National Research and Innovation Plan (PNRI). These will be made available to growers through the Technical Institute for Beets (ITB) and can then be used from this spring in case of yellowing disease on the plots. Soon, models for the prediction of aphid flights from a PNRI project will also be used. Financial compensation The third pillar of the plan is financial compensation to growers if they lose yield due to yellowing disease in 2023. According to Agrobericht Buitenland, the damage is fully covered in such cases. The government is going to ask for the introduction of a European crisis measure for this and is already working with the European Commission to build up the system.

20/2/2023

Euractiv

Commission: Labelling ‘jungle’ deters consumers from buying green food

Consumers are keen to pick sustainable food products even if they cost more, but are deterred by a lack of trust in the labels meant to mark food as green, according to a leading European Commission official for justice and consumers. Food labelling has become a hot topic in recent months, ahead of a contentious Commission proposal on front-of-pack food labelling, expected this spring. The EU executive is also expected to table plans for a ‘substantiating green claims initiative’ in March, which is set to impose penalties on companies making unsubstantiated environmental claims about their products, according to a draft seen by EURACTIV. “There are lots of good companies, good farmers and good individuals that try to promote sustainable products, but we want to make sure that those who are really doing the job and going green are rewarded and that consumers are not misled by greenwashing,” Nils Behrndt, Deputy Director-General at the Commission’s justice and consumers department, said.

20/2/2023

Mercore

Mercore completes the UK’s first ‘digital Bill of Exchange’ transaction

Mercore, the global trade focused fintech group, today announced that it has executed a trade finance transaction utilising an electronic payment undertaking (ePU) structure (in digital bill of exchange format) working with one of its SME clients, Abercore, a UK based sugar trader and advisory firm. This pilot transaction by Mercore was for an amount of circa €118k and is the first in a series of ‘digital bills of exchange’ transactions with greater size and frequency. The underlying transaction involved the sourcing of sugar by Abercore from Pantaleon in Nicaragua for onward supply to a UK based food manufacturer.

20/2/2023

Derivatives market still hit by fallout from Ion Markets cyber attack

Business has yet to return to normal in global derivatives trading, three weeks after a cyber attack on Ion Markets, underlining the financial technology group’s significant role in the plumbing of the $1tn market.

15/2/2023

interempresas.net

Interview with Álvaro Ballano, Head of Market Intelligence at Azucarera

The current price of sugar on the international market is opening a new window of opportunity for beet cultivation in Spain and the rest of Europe. The improvement of commercial margins is allowing the industry to incentivize farmers via price and offer an alternative in rotation that can compete in profitability with corn, wheat and other irrigated production.

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