News and views

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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.

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.

20/6/2022

European Commission JRC

JRC MARS forecast yields for sugar beet remain essentially unchanged

Drought conditions and hot temperatures have been recorded in central and north-western Italy, in southern France and, with less intensity, in western and central France. While in Italy, winter crops and summer crops (particularly maize and sunflowers) have been negatively impacted by the exceptionally hot and dry conditions. In Spain, rain deficit and very hot temperatures have negatively affected rain fed winter and summer crops.

16/6/2022

Bloomberg

Brace for Even Higher Sugar Prices, Europe’s Top Producer Warns

European sugar prices will keep climbing as producers pass on higher costs and supplies remain tight, the region’s top sugar company said. Farmers and processors are being squeezed by bigger energy bills and higher costs for important inputs like fertilizers. At the same time, output is being threatened by beet growers switching to crops such as grains and oilseeds that have become more profitable following the war in Ukraine.Suedzucker spokesperson Dominik Risser said the company expects another increase in prices to customers for the upcoming season due to the ongoing deficit in the sugar markets.

15/6/2022

ePURE

EU ethanol sets new record for greenhouse-gas reduction

Renewable ethanol from ePURE members reduced GHG emissions by 77% compared to fossil fuel in 2021, according to the latest audited producer data; ethanol refineries produced more feed than fuel. Production and use of renewable ethanol from ePURE members reduced greenhouse-gas emissions by an average of 76.9% compared to fossil fuels in 2021, according to newly certified data. It was the tenth consecutive year in which EU renewable ethanol increased its GHG-reduction score. The record-breaking figure comes at a crucial moment for EU energy and climate legislation as policymakers determine what role sustainable biofuels such as renewable ethanol can play in the drive to carbon-neutrality.

14/6/2022

Reuters

Proposed changes to Northern Ireland protocol will not impede U.S.-UK trade dialogue, White House says

WASHINGTON, June 13 (Reuters) - The White House on Monday urged Britain and the European Union to return to talks to resolve differences over implementation of the Northern Ireland Protocol, but said it does not expect the issue to impede a U.S.-UK trade dialogue next week. "The U.S. priority remains protecting the gains of the Belfast Good Friday agreement, and preserving peace, stability and prosperity for the people of Northern Ireland," White House press secretary Karine Jean-Pierre told reporters. Asked if Britain's plans to override some of the post-Brexit trade rules for Northern Ireland could become an impediment for June 22 U.S.-UK trade discussions planned in Boston or a future U.S.-UK trade deal, Jean-Pierre said, "No, I don't believe it will be."

13/6/2022

Cristal Union

Cristal Union reports increased results and improved profitability

n the 2021/2022 financial year, annual revenue amounted to €1.8 billion, up 6.4% (+€105 million). Consolidated EBITDA was up to €206 million (€201 million in 2020/21). The Group's net profit was €97 million, up 40%. On the strength of these improved results, Cristal Union was able to offer its cooperators a remuneration for their beets up by €4 over 2021/2022, to €29.37 per tonne of beet. Chairman O. de Bohan announced that Cristal Union has set a new target of 35 € /t of beet for 2022, beyond the initial target of 30 € . For 2023, a target of 40 € /t "seems reasonable, given the current state of knowledge of the markets", the chairman stated..

13/6/2022

DEFRA

Tech and innovation drive to boost food production and back British farmers

The UK Govt. Strategy follows the independent review of the food system by Henry Dimbleby last year, which set out an analysis of the challenges facing the food system. The Government Food Strategy responds to these findings and recommendations, accepting the majority of recommendations, with policy initiatives to boost health, sustainability, accessibility of diet to secure food supply, while also recognising the shared global challenges of the war in Ukraine and the impact of the pandemic on the global economy The strategy also includes plans to: Consult on an ambition for 50% of public sector expenditure on food procurement to be on food either produced locally or to higher standards Incentivise the sector to use surplus heat and CO2 from industrial processes, and renewable sources of energy to increase domestic horticultural production Review the planning permission process to support new developments of glasshouses Launch an independent review to tackle labour shortages in the food supply chain, to look at the roles of automation, domestic labour and migration to ensure UK businesses can access the labour they require.

11/6/2022

Confectionery Production

UK government to reject taxes on sugar

According to leaked reports from the national food strategy covered by the Guardian newspaper among other national titles, the Prime Minister has knocked-back wide-ranging calls for introducing tougher measures on industry. The PM reportedly claimed that he ‘did not want to see hard working families impacted’ by delivering such a move – which came despite pledging to take action on the issue amid the peak of the Covid-19 crisis, as NHS figures reveal that 63% of adults in England are obese, and a third of children leave primary school overweight.

10/6/2022

Politico

Ukraine war derails French plan to impose stricter food standards on non-EU countries

Between sky-high food prices and millions of tons of wheat stuck in Ukrainian silos, a French proposal meant to impose stricter regulations on imported food and animal feed looks dead and buried. Faced with opposition from countries both inside and outside the bloc — and warnings from the European Commission of legal trouble if enacted — the provisions known as "mirror clauses" are likely not to become a standard feature of the EU's trade deals any time soon. Not to mention a global food crisis that has meant the EU is now focused on removing barriers to food trade. That marks a defeat for France, whose former agriculture minister said that such clauses — meant for third countries to "mirror" the EU's own standards — were the first, second and third priority of its presidency of the Council of the EU this year.

10/6/2022

Euractiv

Germany to review its CAP plan in light of Ukraine war

Germany will re-examine its plans for the implementation of the EU’s Common Agricultural Policy (CAP) in light of the war in Ukraine, the agriculture ministry said in response to the European Commission’s call to move towards ‘resilient and sustainable’ agriculture. Germany agrees with the Commission’s assessment that Russia’s war in Ukraine and the sharp rise in commodity and producer prices represent a “drastic challenge also for the Common Agricultural Policy,” according to a letter the agriculture ministry sent to the Commission on Tuesday (7 June), which was made public on Thursday (9 June). The European Commission previously levelled far-reaching criticism at Germany in its so-called observation letter on the country’s National CAP Strategic Plan. Among other things, Brussels urged Germany to take measures to make its agricultural sector “more crisis-proof” in view of the war in Ukraine, which has thrown global agricultural markets into turmoil. Germany will “examine the regulations and instruments in the CAP strategy plan with this in mind,” Agriculture Minister Cem Özdemir of the Green Party said in the letter. On top of the short-term measures Germany and the EU adopted in recent weeks, the aim here is to strengthen the resilience of agriculture, “in particular by reducing dependence on plant protection products, mineral fertilisers and fossil fuels”.

9/6/2022

Reuters

Tereos does not rule out closing sugar factory in France

French sugar group Tereos may close some of its capacity in France as part of a wider strategy review as it anticipates further declines in sugar beet production, it said on Thursday. “Yesterday’s reality is not necessarily tomorrow’s reality,” Tereos Head of Sugar Europe Olivier Leducq told reporters after the presentation of the group’s yearly results. He said the review was ongoing and a cut in capacity did not necessarily mean the complete closure of a factory. The sugar beet area sown by Tereos cooperative members has shrunk by 10% in the last five years and Leducq said he expected it to fall by another 10% by 2024. Sugar beet production in France has decreased regularly since European Union quotas ended in 2017. Farmers have been deterred by low prices and, more recently, diseases that ravaged crops.

9/6/2022

Tereos

Tereos reports improved results - EBITDA target reached six months ahead of schedule

Revenues of €5,086 million, up 18% at current exchange rates, thanks to strong commercial momentum and supported by higher ethanol and sugar prices and stronger performance by the starch segment. The Group has also initiated the formalities to terminate the activities of Tereos Sugar Romania, its sugar operations in Romania.

8/6/2022

KZPBC Krajowy Związek Plantatorów Buraka Cukrowego

European sugar beet growers at a turning point

“European Beet Growers are staggering from one crisis to another. The post-quota crisis was followed by the Covid-19 crisis, then the energy crisis and the crisis of the invasion of Ukraine by Russia and its dramatic consequences on input costs, without mentioning recurring risks in the protection of the beet crop” stated CIBE President Franck Sander. “However, the increase in world sugar prices is a good signal for our EU domestic price for the season to come. We really hope that higher prices on the EU market will allow to recover some profitability during the next season. This is crucial after years of depressed prices”, he added.

3/6/2022

Euractiv

CAP’s climate spending – All bark, no bite - Court of Auditors damning special report

The EU budget’s contribution to climate action in agriculture has been overstated by a whopping €60 billion, according to a damning new auditors report which also sheds light on the neglected implementation phase of policy-making. “Funding should not count as climate-relevant if there is no evidence to support this,” Joëlle Elvinger, the European Court of Auditors (ECA) member who led the audit, said during the presentation of the study on Monday (30 May). https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=61103

2/6/2022

Nordzucker

Very Successful 2021/22 for Nordzucker

Nordzucker significantly increased Group sales and operating profit in the 2021/22 financial year. Nordzucker achieved Group sales of 1.9 Billion Euro, an increase of 273 Million Euro compared to the previous year. At 114 Million Euro, the operating result (EBIT) was 33 Million Euro higher than the previous year. The company closed the financial year with a net profit of 84 Million Euro (previous year: 66 Million Euro). A higher price level for sugar compared to the previous year and a significant increase in sugar sales contributed to the good result.

28/5/2022

Diario de León

Spanish beet area falls due to rising costs and lack of water

Azucarera and Acor have not reached their expectations with the crop, which totals 17,200 ha

27/5/2022

S&P Global Commodity Insights

European sugar export premium hits record high on low supply, high demand

The Platts White Sugar Containers EU 45IC FAS Antwerp Premium for June shipment reached a record high of $155/mt to the underlying August London No. 5 futures contract on May 25 on high domestic demand and lower supply, according to data from S&P Global Commodity Insights. "The main concern now is how to get sugar delivered at the right time and be exported, especially with freight rates being very high out of Europe," a source said. There was no volume available for exports, with stock levels just enough to meet domestic needs, the source added.

24/5/2022

Eastern Daily Press

Cash-strapped farmers offered advance payment for sugar beet crops

British Sugar has offered to pay East Anglia's farmers a 25pc cash advance on their sugar beet crops to help them cope with crippling cost pressures. The region's arable farmers have been hit with soaring fuel costs and a four-fold leap in fertiliser prices after the war in Ukraine hit world commodity markets. So British Sugar has agreed to pay loyal sugar beet growers a quarter of their agreed price ahead of the 2022/23 harvest campaign, interest free, to help ease their cash-flow problems.

23/5/2022

JRC MARS

Difficult start to EU sugar beet season - JRC MARS

Colder-than-usual weather conditions slowed down germination and early development of sugar beet across Central Europe, but crops are generally in fair condition.

20/5/2022

gov.uk

UK kicks off talks on modern trade deal with Mexico

The International Trade Secretary today (Friday 20 May) launches negotiations on a new UK-Mexico Free Trade Agreement (FTA) alongside her Mexican counterpart, Tatiana Clouthier, in London. Negotiating a ‘Mexico 2.0’ deal would transform the UK’s relationship with the world’s 16th biggest economy and secure a brand new, enhanced FTA for a digital age, which supports hi-tech jobs, industries of the future and grows our economy.

19/5/2022

Destatis

Destatis estimates German 2022 sugar beet area of 398,300 hectares (+2.0%)

Silage maize, which is only sown as a summer crop in spring, is expected to grow to 2.03 million hectares of arable land in 2022 (-8.3%). An area of 1.08 million hectares (+7.9%) is used for winter oilseed rape. In the case of root crops, an area under cultivation of sugar beet of 398,300 hectares (+2.0%) is estimated, and an area under cultivation of potatoes of 258,700 hectares (+0.2%). Legumes are increasing in cultivation, but still only take up a comparatively small part of the arable land.

19/5/2022

Südzucker AG

Südzucker significantly increases operating result in fiscal 2021/22

Südzucker AG had already published its preliminary figures for fiscal 2021/22 (1 March 2021 to 28 February 2022) on 4 April 2022. Today's publication of the annual report now includes the final figures. In fiscal 2021/22, group consolidated revenues rose by EUR 920 million to EUR 7,599 (previous year: 6,679) million. While revenues in the special products segment were slightly higher than last year, the fruit segment’s revenues rose moderately and the sugar, CropEnergies and starch segments’ revenues increased significantly.

14/5/2022

Reuters

Britain delays ban on promotion of high-sugar foods

Britain will delay by a year new rules banning multi-buy deals on foods and drinks high in fat, salt, or sugar (HFSS), with the government saying on Saturday it needed more time given the cost of living crisis. The ban on the deals, including "buy one get one free" (BOGOF), "3 for 2", and restrictions on free refills for soft drinks, had been due to come into force in October. Its delay angered anti-obesity campaigners.

12/5/2022

KZPBC Poland

Pfeifer & Langen Poland agrees to pay 38 €/t for sugar beet in 2022/23

The Polish sugar beet growers' representatives have agreed with the sugar producer to increase the price for the 2022/23 marketing year: not less than 38 € / t, and the beet price for the 2023/24 marketing year: not less than 40 € / t

12/5/2022

Nordzucker

Nordzucker guarantees a sugar beet price of at least 37 €/t

Supply contract 2023 on time for farmers' crop planning – Flexibility allows targeted increases after the campaign – Further increases also possible for existing contracts in 2022 and 2023. In mid-May, Nordzucker beet growers in Germany will receive the contract offer for sugar beet cultivation in 2023, in which Nordzucker guarantees a price of at least EUR 37 per tonne of beet with an average sugar content including beet pulp remuneration and an early and late delivery compensation adjusted to the higher price. In addition, the company undertakes to evaluate the overall cost and revenue situation after the campaign and, if possible, to increase the price with a surcharge. The prices for the existing multiannual contracts will also be adjusted. The current three-year fixed contract for the 2023/24 campaign will be raised to at least 33 euros per tonne of beet, reviewed after the campaign in spring 2024 and ideally also increased.

12/5/2022

Cultures Sucre

Download the 2022 edition of the Statistical Memo produced by Cultures Sucre

Download the 2022 edition of the Statistical Memo produced by Cultures Sucre which brings together the economic data of the sugar sector for France, Europe and the World.

3/5/2022

Le Betteravier

Gas-hungry sugar industries are expected to see their bills increase fivefold

If gas prices remain at the current level, gas bills for the sugar industries are likely to become high in the next season. The price of energy is the highest cost item of industrial sites, with the exception of purchases of beet. The government has provided support for businesses as part of its resilience plan, but they are subject to too many constraints.

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