Tag Archives: EU sugar

EU white sugar price at 723 Euros

EU white sugar price is 723 Euro/MT almost twice the prices on futures markets.

This is the sugar price within the EU community. The EU reference price stands at 404 Euros/MT.

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German sugar demand up but its EU quota unchanged

Germany produced 3.64 million tonnes of white sugar during the 2010/11 season according to the German sugar industry association WVZ, down from the 4.2 million tonnes produced during the 2009/10 season.  Bad weather reducing sucrose content was to blame.  Initially a heat wave in the summer, followed by late rains and then a very cold winter impacted the crop.  The 2010/11 season is now complete.

German sugar supplies stand at 3.86 million tonnes which is almost 1 million tonnes above Germany’s EU quota of 2.89.  The EU sets quotas for sugar production which is subsidized across the EU.  Above quota sales are restricted to industrial use such as ethanol production.

Imports into the EU are lower due to higher world sugar prices making other destinations more attractive.  German demand for sugar is likely to increase following the government’s decision to increase the percentage of ethanol blended into gasoline in Germany.  This is likely to also increase the size of the German beet crop during the 2011 season which commences in the winter.

More on the EU import quota of 300,000 tonnes of sugar

The EU has opted for zero duty on an import quota of 300,000 tonnes instead of the previously suggested reduced duty applied to its tendering process.

The European Commission announced following a meeting of the sugar management committee that fixed volume imports at zero duty would help smaller companies obtain sugar supplies.

The EU’s current duty is Euro 339 per tonne on raw sugar and Euro 419 per tonne on white sugar.  The new import quota will be managed on a monthly basis.  Additional import quotas are likely to be proposed during 2011.

The Commission initially agreed to a tendering process which would give it more control over the volumes imported and prices paid. Britain, Sweden and Portugal protested that a tender process with minimum duties and volumes forming part of the bid process would only benefit larger importers at the expense of smaller rivals. The new plans are to initially be adopted by the European Commission before a vote on the matter in early March.

More on the EU decision to sell 500,000 tonnes of out of quota sugar

The European Commission has approved the sale of 500,000 tonnes of out of quota sugar within the EU.  The additional levy of Euro 500 that usually applies to out of quota sugar will not apply.

EU quota sugar is approximately 13.9 million tones.  EU consumption is approximately 16.5 million. EU exports and imports account for the difference. Some out of quota sugar can be exported while the remainder is sold either to industry or as food.  The additional levy is applied when out of quota sugar is sold as food.

Starting stocks plus in quota sugar plus imports are meant to cover EU consumption but high world sugar prices have made sugar imports difficult.

EU permits out of quota sugar and imports without duty

The European Commission allowed 300,000 metric tonnes of raw or refined sugar without import duties.  It was also decided that 500,000 tonnes of out of quota sugar would be permitted.

The EU’s sugar management committee voted today to allow additional imports and the sale of out of quota sugar.  The sugar management committee’s decisions concerning the EU sugar market, import tariffs and subsidies are ratified by the European Commission.

EU sugar producers can sell limited quantities of sugar. The EU is to scrap a levy on out of quota sugar.  Licences for out of quota sugar would be confirmed following weekly applications. A Euro 500 per tonne penalty would be applied if the volumes were not filled.

Dacian Ciolos, EU farm Commissioner announced the news following a meeting with EU farm ministers today.  The news will be welcomed by refiners and sugar users as supply has been tight and companies, including confectioners, have faced difficulty obtaining supplies.

Mauritius sugar production falls 3.2%

Mauritius sugar production fell by 3.2% in 2010 to 452,473 compared to 2009 whereby the forecast for the year was 450,000.  The sugar industry in Mauritius makes up 3% of its GDP.  The 2010 crop was priced at MUR 13,500 per tonne up from MUR 12,800 six months ago. The rupee has strengthened against the EURO from MUR 44.50 to MUR 41.10 and higher Mauritian prices reflect higher prices in the EU and a weaker EURO.

EU permits imports and out of quota sugar

The EU faces tight sugar supply with European buyers, including confectioners, finding difficulty buying quota sugar.  EU regulation for the sugar industry was revised in 2006 following a WTO decision that EU production quotas for each country should be reduced to the extent that the block becomes an importer of a minor part of its consumption with developing countries being granted preferential access as exporters to the EU, facing no import tariffs, and from 2015 without restrictions on the quantities exported. 

EU quotas for its sugar production first decreased in 2006 in the expectation that developing countries would export the deficit.  Such exports have not always materialised and more recently high world sugar prices have resulted in such sugar being exported elsewhere.  The EU, facing shortages, has decided to allow out of quota sugar and additional imports.