The European Commission has cleared the acquisition of the world’s largest sugar trader ED&F MAN by Europe’s largest sugar producer Südzucker and said it would raise no competition concerns on one condition.
Demand for cocoa is expected to climb 30% in the next 10 years creating a 25% shortage of current supply, according to North American cocoa processor and chocolate ingredients supplier Blommer Chocolate Company.
The UN’s Food and Agriculture Organization has reported a rise in cereal prices from January to February with wheat prices raising the most. However the second highest wheat crop is forecast for 2012, which could bring prices down.
Wheat prices in 2012 are likely to be volatile and will be dictated by the global maize market and weather conditions, according to an analyst at the UK’s Agriculture & Horticulture Development Board (AHDB).
World sugar prices are likely to stay high in 2012 due to external factors such as government policies, oil prices and instability in the Eurozone, according to the US Department of Agriculture (USDA).