The liberalisation of the EU sugar market next year must be accompanied by market measures to maintain sugar beet production and allow the sector to retain its strategic importance, according to a recent EU report.
Global sugar prices have rocketed 30% since mid-April as the balance between supply and demand tightens. In Europe prices have remained steady but could soon increase, according to Rabobank’s latest sugar quarterly.
The recent finalization of the Trans Pacific Partnership is good news for confectioners and sugar-using manufacturers across the US, according to Rick Pasco, president of Sweetener Users Association (SUA).
A judge in Illinois has thrown out a class action lawsuit against KIND LLC over “no refined sugars” claim on its Healthy Grains products, which contain evaporated cane juice, a form of sugar, and molasses.
Sugar prices in the US have fallen more than 40% since last summer and are now at “dangerously low levels for producers who are facing ever-increasing input costs”, according to Jack Roney, an economist with the American Sugar Alliance (ASA).
Sugar stocks should rise significantly from their current low levels, with analysts forecasting a global sugar surplus of around 9.5m tonnes in the 2011/12 (October-September) crop year, on the back of increased production in Europe and Asia.
The downward trend in sugar prices is likely to continue, but this recent correction in the market may be undermined by tight global supplies, a factor also likely to curb the fall in cocoa prices, according to Rabobank.
Danisco has announced that it will sell its sugar division to
Nordzucker for DKK5600m, around €751m, bringing to an end months of
speculation as to whether it would agree to a sale or opt to spin
off sugar into a separate business.
Danisco has said it is close to concluding negotiations with
potential buyers of its sugar business, but is still working
towards spinning it off into a separate business by the end of 2008
in case a suitable deal cannot be struck.