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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28/7/2021

L'Institut Technique de la Betterave (ITB)

Virus yellows appears in sugar beet south of Paris

At the beginning of July 2021, the first symptoms of virus yellow disease were observed in a very concentrated area (mainly in Loir-et-Cher). These symptoms were observed in plots sown around March 20 (which did not require reseeding following the April frost), ie 100 days after sowing. They appeared in fields with or without NNI seed coating protection. Symptoms are observable on 15 to 20% of the surfaces of the Center zone. The areas developing jaundice stains would only concern 500 hectares.

21/7/2021

Nordzucker

Sugar Beet Growth Has Caught Up

After the rather hesitant growth of sugar beet in all regions of our cultivation area, the beet have caught up. Rainfall and higher temperatures led to a growth boost from the end of May. Overall, a harvest that is at least average is expected now. Statements that are more precise can only be made with the trial harvests. The first one will take place at the beginning of August.

16/7/2021

Hoy

Merida sugar plant will begin construction work next year 2022 and could become operational in the first quarter of 2024

This has been revealed after the signing this Friday of a declaration of intentions between the president of the regional executive, Guillermo Fernández Vara; the Minister of Industry, Reyes Maroto, and the representative of the Iberian Sugar Company SLU, Jamal Majid Al-Ghurair. the president of Ibérica Sugar Company SLU, Jamal Al Ghurair, has said that it will be necessary to produce between 700,000 and 900,000 tonnes per year so that we can speak of a "gigaplant", as well as a sugar beet growing area of between 80,000 and 100,000 hectares.

15/7/2021

The Spectator

A salt and sugar tax doesn’t make much sense

What is the point of the National Food Strategy? When Henry Dimbleby was hired as Britain’s ‘food tsar’ several years ago, the idea was to develop some blue sky thinking and to have someone look at the issue with a fresh pair of eyes, but when he produced his first report last year, it contained the same generic, flat-pack, bone-headed, nanny-state recommendations that every other voice of the establishment had been calling for. So predictable were his conclusions that the government had already committed itself to implementing most of them by the time it was published and he resorted to moaning about Percy Pigs to give himself an angle.

15/7/2021

British Sugar

British Sugar "surprised and deeply alarmed" at the "extraordinary level of taxation proposed on the sale of sugar"

“We are surprised and deeply alarmed at the extraordinary level of taxation proposed on the sale of sugar in part two of Henry Dimbleby’s National Food Strategy. Food has to be affordable for all and we do not believe that any foods should only be available for the rich.

14/7/2021

WTO

WTO issues new edition of World Tariff Profiles

The WTO issued today (14 July) the 2021 edition of World Tariff Profiles, a joint publication of the WTO, International Trade Centre and the United Nations Conference on Trade and Development (UNCTAD). The publication provides comprehensive information on the tariffs and non-tariff measures imposed by over 170 countries and customs territories.

13/7/2021

Bloomberg

Out-of-Control Shipping Costs Fire Up Prices From Coffee to Toys

Transporting a 40-foot steel container of cargo by sea from Shanghai to Rotterdam now costs a record $10,522, a whopping 547% higher than the seasonal average over the last five years, according to Drewry Shipping. With upwards of 80% of all goods trade transported by sea, freight-cost surges are threatening to boost the price of everything from toys, furniture and car parts to coffee, sugar and anchovies, compounding concerns in global markets already bracing for accelerating inflation.

13/7/2021

Euractiv

Carbon labelling needs to be data-led and science-based to create a level playing field

Retailers and food producers in Europe are pioneering new labels to showcase the environmental impact of the food in a simple way, such as the Eco-score, which basically follows the look of the French colour-coded Nutri-Score. “The importance of what I would call ‘carbon labelling’ is that it actually helps consumers to navigate, but it needs to be data-led and science-based to create a level playing field,” said Peter Giørtz-Carlsen, executive vice-president of the dairy company Arla Foods. He also agreed that there are many elements to take into consideration other than just the environmental footprint, such as the nutritional elements.

12/7/2021

The Daily Telegraph

Beet it: why Britain's sugar industry is not so sweet

It is already a symbol of Britain’s old imperial reach, a scourge of public heath officials and a flashpoint for campaigners against the nanny state. But sugar has now found a new role in the modern UK - as a battleground for post-Brexit national ambition amid a tussle between domestic suppliers and foreign imports. At the heart of the war are two companies, British Sugar and Tate & Lyle Sugars, fighting to secure a bigger share of the market now that Britain has left the European Union. The two businesses have long fought each other for control of the market, but now their arguments have spilled over into a full-blown legal battle after the High Court agreed with British Sugar that a tariff break on cane sugar could face a judicial review.

12/7/2021

FoodDrinkEurope

Decarbonizing the food and drink sector: FDE roadmap helps manufacturers plot a path to net-zero emissions

FoodDrinkEurope has commissioned a roadmap to assess the climate impact of the European food and drink manufacturing sector. The Roadmap has been developed by Ricardo Energy & Environment on behalf of FoodDrinkEurope. It assesses the climate impact of the European food and drink manufacturing sector, and sets out some of the available pathways for decarbonisation to net-zero by 2050. The roadmap highlights the many opportunities that are available to the sector, whilst also discussing the numerous challenges and barriers that will need to be overcome.

9/7/2021

euronews.green

Farm to Fork: EU launches a 'Code of Conduct' for healthier and more sustainable food industry

On Monday, the European Commission, along with 65 companies and organisations (26 food manufacturers, 14 food retailers, one from the food service sector, 24 associations) launched an EU ‘Code of Conduct’. It aims to be a landmark of the European long-term strategic vision to transform the way we produce, distribute and consume food. It is an important chapter within the ‘Farm to Fork’ strategy, which aims to translate the green transition into concrete actions for the food system, at every step of the chain. “We need to make our food system sustainable, and we need to do it soon,” says Executive Vice-President of the European CommissionFrans Timmermans. “We must reduce greenhouse gas emissions and halt biodiversity loss related to food production and shape a food system that makes it easier to choose a healthy and sustainable diet.”

9/7/2021

The Grocer

Confectionery prices set to rise as sugar surge continues

Analysts expect a further 10% to 15% rise in sugar prices over the next six months. Chocolate, sweets and soft drinks could soon taste a little less sweet as surging sugar prices look set to drive up costs across food manufacturing. Global sugar prices hit a four-year high last week ...

8/7/2021

Office of National Statistics (UK)

In the balance: Identifying differences between UK and EU trade figures

There is continuing interest in the apparent disparities between the UK’s official statistics on trade and those produced by the European Union (EU), which have increased since the end of the Brexit transition period. The ONS is working hard to identify and resolve these issues. However, as Matt Hughes explains, a fundamental accounting difference appears to be the major factor.

8/7/2021

Südzucker AG

Südzucker’s outlook for the current 2021/22 fiscal year confirmed

Südzucker AG’s consolidated revenues in the first quarter of fiscal 2021/22 (1 March to 31 May 2021) increased moderately to EUR 1,753 (previous year: 1,669) million. While the special prod-ucts segment's revenues declined moderately, they were up moderately in the sugar and fruit segments and rose significantly in the CropEnergies and starch segments, respectively. Group EBITDA was EUR 13 million lower than last year at EUR 121 (previous year: 134) million.

6/7/2021

The Parliament Magazine

Europe’s soft drinks industry is committed to making the healthier choice, the easy choice

We, UNESDA Soft Drinks Europe, fully support the European Commission’s Farm to Fork Strategy which aims to improve the food environment and promote healthier lifestyles and wellbeing. Creating a healthier and more sustainable food system is essential and requires urgent action by all sectors of society. The soft drinks industry is doing its part to create a healthier food environment so that the healthier choice becomes the easy choice for consumers.

6/7/2021

Reuters via Nasdaq

EU sugar output seen higher in 2021/22, stocks to climb

LONDON, July 6 (Reuters) - Sugar production in the European Union is forecast to rise in the 2021/22 season leading to an increase in stocks of the sweetener, the European Commission said on Tuesday in a short-term outlook report. The EU's executive projected white sugar production would rise to 15.5 million tonnes in 2021/22, up from the prior season's 14.5 million. Sugar beet yields were forecast at 74 tonnes per hectare, in line with the five-year average but 10% higher than the previous season. Sugar beet area was also seen rising by 1% to 1.5 million hectares. "Cold spells and frosts during the sowing campaign led to some lost plantings, although most of them could still be re-sown. The cold weather in the spring has reduced the pest and disease pressure, which is having a positive impact on yields," the report said. Stocks at the end of the 2021/22 season were seen at 1.4 million tonnes, up 28% from 1.1 million a year earlier.

2/7/2021

The Times

High Court challenge over Brexit sugar tariff

The government is facing the first significant legal challenge to its post-Brexit independent trade policy after the High Court agreed that a decision to cut tariffs on some UK sugar imports could be subject to a judicial review. The case, brought by British Sugar against Liz Truss, the international trade secretary, is also the first test of how far state aid clauses in the Northern Ireland protocol will affect the government’s ability to issue subsidies. Legal experts said that the case would be watched closely by ministers and industry.

1/7/2021

Farmers Guardian

Bitter sugar price tussle heading for arbitration

British Sugar and NFU Sugar could be heading to arbitration for the first time in history after a bitter tussle over the contract price for the 2022 crop. British Sugar has set out an indicative beet price of £25 per tonne for 2022/23. NFU Sugar has responded furiously, arguing that with current buoyant sugar market conditions and recent profits it can easily afford to pay growers a higher price. The most recent counter-offer made by NFU Sugar to British Sugar is a fixed price of £27.75/t on a one or two-year contract, including the opportunity for existing multi-year growers to upgrade if committing to both 2022 and 2023. Under the law, if British Sugar and NFU Sugar cannot agree on a price, the government’s Department for Environment, Food and Rural Affairs would need to act as or appoint an arbitrator, a process which could result in a decision as late as October 2022.

1/7/2021

Associated British Foods

ABF Trading Update

Sugar revenues in the quarter were significantly ahead, driven by strong volumes in Illovo and China and higher prices in Europe and Africa.

30/6/2021

Newark Advertiser

Workers at British Sugar factories could strike next month

The UK's leading union Unite the Union said 86% of its 500 members in factories in Newark, Suffolk and Norfolk have rejected a 2% pay offer by British Sugar. The union said its members are angry the company pledged to implement a reasonable pay rise when it returned to profitability following their acceptance of a 1% increase in 2019, when British Sugar was struggling financially. "Its financial records show it made pre-tax profits of £55 million in the year up to August 2020, with a similar profit estimated for this year," said Unite.“British Sugar is operating at a profit and can clearly afford massive pay rises for top staff.A British Sugar spokesman said: “We are in active negotiations with Unite to reach agreement on our pay offer for our factory based people. "We are therefore disappointed that the union is talking about strike action and the communication today contains a number of inaccuracies. We are confident we will reach an agreement that works for all in the coming weeks.”

29/6/2021

Companies House UK

ASR Group Europe, parent company of T&L Sugars, records EBITDA in 2020 of +€23.9m after +€16.4m in 2019

According to accounts filed at Companies House on 29 June 2021, ASR Group Europe, parent company of T&L Sugars, recorded EBITDA in 2020 of +€23.9m after +€16.3m in 2019. The result for 2020 was a net loss of €3.2m after a net loss of €23.6 in 2019. In separate accounts filed the same day at Companies House, T&L Sugars Ltd recorded an EBITDA profit of €17.7m after €9.8m in 2019. The companies' accounts noted that ASR continued to operate in an "inequitable" European regulatory environment, with government policies which artificially inflate the cost of imported raw cane sugar used in ASRGE's European factories, policies which prevent the purchase of raw cane sugar from suppliers with the "very highest ethical and environmental standards", the company said.

29/6/2021

Farmers Guardian

Government to review UK’s global sugar tariff if imports flood market

Secretary of State for Environment, Food and Rural Affairs George Eustice said: “We have already got our UK global tariff with a significant provision for what is called an ATQ, open to the rest of the world. If market conditions require it, it is open to us to adjust that at any point in the future.” National Farmers Union sugar board chairman Michael Sly said: “I would encourage the Government to be open and transparent with the industry and growers about import levels under the ATQ, the sources of these imports, when it intends to review the quota levels and what criteria it would use to determine the ‘right level’ of quota.”

29/6/2021

FoodIngredientsFirst

Soft drinks industry poised to slash added sugar by 10% in Europe as industry sets new 2025 target

The Union of European Soft Drinks Associations (UNESDA) has revealed its enhanced health and nutrition targets to help Europeans manage their intake of added sugars from soft drinks with a pledge to reduce sugar by a further 10 percent by 2025. Key sugar reduction players, including SweeGen, Kerry, Roquette and Sensient, also share their insights following the latest moves for sugar reduction. The new targets will represent a 33 percent overall reduction in average added sugars over the last two decades, building on past sugar reduction milestones that the industry achieved from 2015 to 2019 (14.6 percent reduction on average) and from 2000 to 2015 (13.3 percent reduction on average).

28/6/2021

Le Betteravier

Le sucre ne sera pas éligible à l’intervention

Malgré trois ans de crise pour les betteraviers européens, les pays les plus libéraux n’ont pas voulu mettre en place un filet de sécurité pour le marché du sucre. C’est une occasion manquée pour l’Europe, qui aurait pu renforcer son secteur sucrier. Si des progrès ont été réalisés en matière de régulation des productions agricoles dans le cadre du règlement sur l’organisation commune des marchés (OCM) pour d’autres produits – par exemple le vin – ce n’est pas le cas du sucre. C’est ce qui ressort du trilogue du 25 juin dernier entre le Conseil, le Parlement européen et la Commission sur la réforme de la PAC. Un accord qui a reçu le feu vert des ministres de l’Agriculture le 28 juin.

26/6/2021

Forbes

EU’s Common Agricultural Policy Falls Short Of Sustainability Expectations

The Portuguese presidency of the European Council has reached a provisional agreement with the European Parliament and the European Commission on June 25 on the Common Agricultural Policy (CAP) reform for 2023-2027. The European Parliament negotiators talk about a success and hope that the new agreement will be approved in the Committee on Agriculture and Rural Development next week.

23/6/2021

Politico

Brexit not so sweet for UK’s sugar beet farmers

The National Farmers’ Union is ‘extremely concerned’ about a glut of sugar imports as a result of the UK-Australia trade deal.

16/6/2021

Bloomberg

Get Ready for a Flood of Sugar as Brazilians Buy Electric Cars

Brazil is set to flood the world market with sugar as the transition to electric vehicles slashes demand for crop-based biofuels, according to a study led by an influential industry executive. Demand for ethanol, made mostly from sugar cane in Brazil, will likely start to decline in 2030 as EVs become more widespread, said Soren Jensen, the former chief operating officer of top sugar trader Alvean, who authored the study together with Mariana Perina Jirousek. That will leave millers in the world’s top sugar exporter with no option but to make more of the sweetener.

15/6/2021

Australian Minister for Trade, Tourism and Investment

UK/Australia sugar quota 80,000 tonnes p.a., rising 20kt p.a. - Australian Trade Minister

Sugar tariffs will be eliminated over eight years. During the transition period, Australia will have immediate access to a duty-free quota of 80,000 tonnes, rising by 20,000 tonnes each year.

15/6/2021

julianprice.com for Südzucker AG

World sugar market price signals may promote better decision-making

World sugar prices are volatile, rife with speculation, knocked about by the weather, and they are contorted by fiscal, agricultural, environmental, health and other government policies. Moreover, these prices are often below the costs of production for even the most efficient of sugar producers. And yet world market prices are a transparent and reliable benchmark for around 61 million tonnes of sugar which is traded internationally, or about 36% of global production according to the International Sugar Organization (ISO). And so for many producers and hence consumers, the world market is not just a residual market of last resort – although it is – but it is in fact the only market.

14/6/2021

Bloomberg