News and views

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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.

1/5/2022

Agreste

Slight upward revision of French sugar beet sowings

Industrial sugar beet surfaces are slightly revised upwards to 399 thousand hectares. They are almost stable compared to 2021 (-0.7%), but a sharp drop compared to the 2017-2021 average (-10.9%). The April frosts caused losses in the Grand Est and in the Centre-Val de Loire region, but some of the destroyed surfaces have been resown.

26/4/2022

ABF

AB Sugar traded strongly in the first half of FY 2022 with revenue driven by higher domestic sales and prices

AB Sugar traded strongly in the first half with revenue driven by both higher domestic sales volumes in Illovo and Azucarera and higher sugar and bioethanol prices. This period is the next step in the recovery of profit with an increase of 8% over last year. All businesses continued to focus on reducing the cost of sugar production through on-going efficiency programmes. These cost savings and the contribution from higher sales prices helped mitigate the effects of significant input cost inflation, particularly energy costs. The margin decline was driven by the start-up costs for our Vivergo bioethanol plant included in this period. EU sugar prices continued to improve over last year as a result of the continuation of low European sugar stocks. Our UK and Spanish businesses have largely contracted sales for the year at much improved prices compared to last year. UK sugar production is now expected to be 1.03 million tonnes, compared to 0.9 million tonnes produced in the last campaign, with good growing conditions supporting higher yields and mitigating the reduced growing area. Energy costs remain at very high levels although substantial forward cover mitigated to some degree the margin impact during the first half. We have benefitted from strong pricing of the electricity we produce for export and from the bioethanol produced from sugar. Re-commissioning of the Vivergo bioethanol plant is well underway. The performance of Azucarera in Spain improved with higher prices and volumes. Significantly improved sales volumes reflected share recovery in Iberia. Sugar production is expected to be significantly higher than last year, although mostly from lower margin refined 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 Malawi, Eswatini and Mozambique in the period, in large part due to adverse weather.

14/4/2022

Südzucker AG

Südzucker expects significant earnings increase in the first quarter 2022/23

The forecast for the first quarter and the full year is based on the assumption that the Ukraine war will remain temporary and regionally limited, that the physical supply of energy and raw materials is guaranteed and that the sales and procurement markets will partially normalize during fiscal 2022/23. In this context, Südzucker's expected transfer of the significantly higher prices, especially in the raw material and energy sectors, into new customer contracts will be of decisive importance.

13/4/2022

IMF

The Heads of the World Bank Group, IMF, WFP and WTO Call for Urgent Coordinated Action on Food Security

The world is shaken by compounding crises. The fallout of the war in Ukraine is adding to the ongoing COVID-19 pandemic that now enters its third year, while climate change and increased fragility and conflict pose persistent harm to people around the globe. Sharply higher prices for staples and supply shortages are increasing pressure on households worldwide and pushing millions more into poverty. The threat is highest for the poorest countries with a large share of consumption from food imports, but vulnerability is increasing rapidly in middle-income countries, which host the majority of the world’s poor. World Bank estimates warn that for each one percentage point increase in food prices, 10 million people are thrown into extreme poverty worldwide.” “The rise in food prices is exacerbated by a dramatic increase in the cost of natural gas, a key ingredient of nitrogenous fertilizer. Surging fertilizer prices along with significant cuts in global supplies have important implications for food production in most countries, including major producers and exporters, who rely heavily on fertilizer imports. The increase in food prices and supply shocks can fuel social tensions in many of the affected countries, especially those that are already fragile or affected by conflict.

13/4/2022

kmfm news (via Twitter)

Logistics UK calls for an urgent review of Operation Brock on the M20

As waiting times for the Dover-Calais crossing are about 7 hours long, we urgently need an alternative to forcing drivers to sit in their lorries without food or toilet facilities. Heidi Skinner of @LogisticsUKNews calls this a "humanitarian issue".

8/4/2022

FAO

The FAO Food Price Index makes a giant leap to another all-time high in March

The FAO Food Price Index* (FFPI) averaged 159.3 points in March 2022, up 17.9 points (12.6 percent) from February, making a giant leap to a new highest level since its inception in 1990. The latest increase reflects new all-time highs for vegetable oils, cereals and meat sub-indices, while those of sugar and dairy products also rose significantly.

8/4/2022

L'Institut Technique de la Betterave

Too early to estimate the total damages on sugar beet caused by the cold wave in France, but some growers will certainly need to re-sow

In the first days of April, France was hit by a cold snap. The temperatures recorded varied from -2 to -9.8 °C in Mourmelon-en-Champagne, a town in the beet territory traditionally recording the lowest temperatures. What are the consequences of this wave of frost in beet cultivation? The ITB takes stock as of 7 April. CIBE writes: Still too early to estimate the total damages on sugar beet caused by the cold wave in France, but some growers will certainly need to resow. That's the 2nd consecutive year with late deep-freeze just after sowing.

8/4/2022

Eur-lex

Bonsucro EU scheme is compliant with with EU renewable energy directive (RED II)

In assessing the ‘Bonsucro EU’ voluntary scheme, the Commission found that it covers adequately the sustainability criteria laid down in Article 29(2) to (5) of Directive (EU) 2018/2001, while it also contains accurate data on greenhouse gas emission savings for the purpose of Article 29(10) of Directive (EU) 2018/2001 and applies a mass balance methodology in accordance with the requirements of Article 30(1) and (2) of Directive (EU) 2018/2001. This assessment does not take into account the forthcoming implementing act to be adopted in accordance with article 30(8) of Directive (EU) 2018/2001, on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria. The ‘Bonsucro EU’ voluntary scheme will therefore be re-assessed when such an implementing act will be adopted.

7/4/2022

Farmers Weekly

UK beet farmers set to benefit with futures-based pricing in contract

Forecast UK beet prices basis Dec futures are indicating up to £38/tonne after a sharp rally in the London white sugar market. Growers opting into a new futures-based pricing mechanism within their contract to supply sugar beet to British Sugar have the chance to profit from a rising sugar market. Like many agricultural commodity markets, the sugar price is rising, although not as strongly as cereal or oilseeds, because it doesn’t have the same exposure to the Black Sea region, Mr Marshall says. “For growers who have allocated to tonnage to be priced this way this season, £33-£34/t was achievable in early March, higher than the traditional fixed price of £27/t. “A lot has changed since that price was agreed last summer. This type of contract allows growers to take advantage of that.”

6/4/2022

Blinkinsland.at

Austrian sugar beet area in 2022 slightly below target

As the beet farmers' association informed us in a letter to its members, the beet area contracted for 2022 will reach 36,000 hectares. According to Agrana, 38,000 hectares are needed in the medium term for the continued existence of the sugar factory. The large jumps in prices that are currently characterizing the agricultural markets could still persuade some farmers to change their spring cultivation. The forecasts for the sugar market point in the direction that a sugar price for delivery rights beet of at least €40/t with a sugar content of 17.5% appears feasible. This price will significantly exceed the set minimum price. This allows the sugar beet to strengthen its competitiveness compared to other crops.

5/4/2022

Farmers Guardian

Gas inflation leads British Sugar to seek ‘significant’ price rises

British Sugar is seeking ‘significant’ price rises from its customers, as gas inflation has left it facing soaring costs.

4/4/2022

RFI

The cost of energy, a handicap for beet growers

The same goes for European beet growers, which have already spent 15% more on fertilisers at this stage. "We can't do without it, for now," says Timothée Masson, secretary general of the World Association of Sugar Beet and Cane Growers, which is calling for the removal of tariffs imposed by the EU on fertilizer imports. Sugar producers are also preparing to suffer: in view of the increase in the price per megawatt-hour, they risk seeing their processing cost increase by 40%. Sugarcane producers, on the other hand, are spared in terms of energy since they produce their own fuel: bagasse, sugar cane residue. A boon that could result in stronger competitiveness, to the detriment of beet growers.

30/3/2022

DEFRA

Eustice: supporting farmers ahead of the coming growing season

The Government has announced steps to assist farmers with the availability of fertilisers for the coming growing season to help address uncertainty amongst growers and keep costs down for farmers. With agricultural commodities closely linked to global gas prices, farmers are facing rising costs for inputs including manufactured fertiliser, due to the process depending on gas.

24/3/2022

Our World in Data

How could the war in Ukraine impact global food supplies?

Ukraine and Russia both play a major role in global food markets. They are net exports of several of the leading cereal crops: wheat, maize (corn), and barley. Both are also dominant exporters of sunflower oil, one of the world’s dominant vegetable oils. Some countries – such as India – rely heavily on imports of sunflower oil for domestic food supplies.

23/3/2022

Agrodigital

Al Khaleej Sugar opts for Rouen instead of Mérida

Haropa Port has announved that it will be Rouen (France) where Al Khaleej Sugar (AKS) will build its sugar factory, which aims to be one of the largest in Europe. Haropa Port has selected the AKS project to build a sugar mill further to the call it launched in June 2021 for the improvement of an old industrial platform located Grand-Couronne – Moulineaux (Seine-Maritime). The beet sugar factory will be located on a 75 ha site, with an investment of several hundred million euros and could be operational in 2025. Production of between 650,000 and 850,000 t is expected, representing between 7 and 9% of imports from AKS's target geographical areas: Maghreb, Italy, Spain and the United Kingdom.

23/3/2022

gov.uk

UK Imports of Sugar under Statutory Instrument 2020 No. 1432

This notice explains how the rules are applied to this quota and how to apply for a licence. It also advises you of the quota amounts available in the April 2022 quota application period. Details of the quantities available are given in Annex 1 of this notice.

22/3/2022

WVZ

German sugar industry files state aid complaint with the EU Commission

Wirtschaftliche Vereinigung Zucker (WVZ, German Economic Association for Sugar) has filed a complaint with the European Commission against coupled payments for the cultivation of sugar beets. ‘The current practice of coupled payments for sugar beet cultivation skews competition. According to the provision, premiums should only be granted in exceptional cases. In many member states, however, they have become standard. This violates European subsidy law. Science and politics have long recognised the rise in unfair competition. Nevertheless, nothing has changed. That’s why we now filed a complaint against government subsidy with the EU Commission’, comments WVZ Chairman Dr Hans-Jörg Gebhard. ‘We demand that EU Competition Commissioner Margrethe Vestager and her counterpart Janusz Wojciechowski finally create fair competition at EU level. The previous funding practice must be corrected. Moreover, this competition-distorting practice must not be allowed to continue to be reflected in the national strategy plans for the Common Agricultural Policy from 2023 onwards.’

21/3/2022

ARTB

Rise in beet input costs for the 2022-23 campaign - ARTB study

With the rise in energy prices, farmers face an increase in the cost of their inputs which is likely to greatly reduce the economic profitability of sugar beet farms. Based on this observation, the ARTB carried out an analysis aimed at quantifying the economic impact of this situation.

21/3/2022

European Journal of Clinical Nutrition

Sucrose and other dietary sugars are not linked to diabetes - European Journal of Clinical Nutrition

Results from various systematic reviews and meta-analyses do not support the idea that the intake of sucrose and other dietary sugars is linked to type 2 diabetes mellitus.

21/3/2022

WTO

WTO agriculture negotiators chart path towards MC12

The chair of the agriculture negotiating group, Ambassador Gloria Abraham Peralta (Costa Rica), noted the impact of the conflict in Ukraine on global food markets and the agriculture negotiation environment. She asked members to prepare for intensive negotiations and use the remaining time wisely so as to achieve pragmatic, meaningful outcomes at MC12. Many members supported pursuing talks on the basis of the chair's draft negotiation text from November 2021 (TN/AG/50). In their view, this text is not perfect but offers a balanced and realistic starting point which reflects the efforts and hard work undertaken to date. Meanwhile, other members continued to ask the chair to revise the text to take on board the proposals from the G33 group of developing members and the African Group.

18/3/2022

Le Betteravier Français

A mega sugar factory project in Rouen

Dubai-based Al Khaleej Sugar (AKS) plans to build Europe's largest export-oriented beet sugar refinery in the port of Rouen. The approximately 800,000 tonnes of sugar produced per year could require the cultivation of 50,000 ha of beet.

18/3/2022

Politico via Twitter @eddywax

France pauses agri-trade ‘crusade’ for 'mirror clauses' amid Ukraine crisis

France's big push for "mirror clauses' during its EU presidency has taken a hit due to the Ukraine crisis. Far from toughening import rules on pesticide residues as France wanted, in fact the EU is now softening them to let in more animal feed.

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