Interesting news and views about the sugar markets, policy, trade and analysis.

France lifts bee-killing pesticide ban

France lifts bee-killing pesticide ban

10 August 2020 (The Times) French environmentalists have reacted with anger to a government decision to lift a ban on neonicotinoid pesticide, known for killing bees, to help sugar beet growers save their crop from a virus.

thetimes.co.uk
Jaunisse de la betterave - Objectif : éviter un abandon massif de la betterave en 2021

Jaunisse de la betterave - Objectif : éviter un abandon massif de la betterave en 2021

7 August 2020 (terre-net) Face aux multiples alertes de la filière et de nombreux élus, le gouvernement a présenté jeudi 6 août 2020 un plan de soutien à la filière betteravière, concédant que « les alternatives techniques aujourd’hui disponibles se sont révélées inefficaces pour la culture de la betterave ». Ce plan comprend notamment un recours dérogatoire aux néonicotinoïdes au moins pour 2021 et des indemnisations pour les pertes les plus importantes. Objectif : éviter un abandon massif de la betterave en 2021 par les agriculteurs.

terre-net.fr
The new CAP must be linked more closely to the UN Sustainable Development Goals

The new CAP must be linked more closely to the UN Sustainable Development Goals

5 August 2020 (Prof. Alan Matthews in Agricultural and Food Economics) At the moment, the Commission’s claim that the new CAP addresses the SDGs is little more than a rhetorical device. Given that the EU is committed to implementing the SDGs, this needs to change. A lot of groundwork has been done to identify the SDG targets to which the CAP can contribute. What is needed now is to translate the relevant SDG targets into measurable, time-bound indicators so that progress can be evaluated, and potential incoherencies assessed. The proposed set of CMEF indicators is clearly inadequate for this purpose.

link.springer.com
EU average sugar prices appear to be stagnating

EU average sugar prices appear to be stagnating

24 July 2020 (@sugartraders) EU average sugar prices appear to be stagnating. The average sugar price reported by @euagrifood for May 2020 was down 4€ to 375 €/t. Average prices were up 2€ in Region 1, down 8€ in Region 2 and up 2€ in Region 3, the data showed.

https://agridata.ec.europa.eu/ data also recorded just 1,000 of CXL Erga Omnes licences for July 2020 (cumulatively 82,980 tonnes since October 2020). Imports of sugar from Serbia amounted to 9,631 tonnes in July (cumulatively 61,324 tonnes since October 2020).

linkedin.com
Brexit: David Frost's statement following the conclusion of round 5 negotiations

Brexit: David Frost's statement following the conclusion of round 5 negotiations

24 July 2020 (No 10) David Frost said: "... considerable gaps remain in the most difficult areas, that is, the so-called level playing field and on fisheries. We have always been clear that our principles in these areas are not simple negotiating positions but expressions of the reality that we will be a fully independent country at the end of the transition period. That is why we continue to look for a deal with, at its core, a free trade agreement similar to the one the EU already has with Canada – that is, an agreement based on existing precedents. We remain unclear why this is so difficult for the EU, but we will continue to negotiate with this in mind."

no10media.blog.gov.uk
Europe’s Chemophobic Green Deal

Europe’s Chemophobic Green Deal

23 July 2020 (Risk Monger) When endocrine activists draft European Parliament resolutions, it gets embarrassing.

risk-monger.com
When the CAP budget pendulum finally stopped swinging

When the CAP budget pendulum finally stopped swinging

22 July 2020 (CAP Reform) In the early hours of Tuesday 21 July 2020, around 5.30 am, after four days and nights of negotiations, European Council leaders reached agreement on both the Next Generation EU recovery instrument and the Multi-annual Financial Framework (MFF) for the the period 2021-2027. Reaching unanimous agreement among 27 leaders who entered the negotiations with widely different positions was an astounding political achievement. And although the inevitable compromises were accompanied by expressions of regret, it is extraordinary that every leader has expressed satisfaction with the final outcome.

In this post I concentrate on what the final outcome implies for the CAP budget in quantitative terms. The outcome is not what farmers had hoped for but nor is it as bad as they feared.

capreform.eu
NFU Sugar position on new raw sugar Autonomous Tariff Quota

NFU Sugar position on new raw sugar Autonomous Tariff Quota

22 July 2020 (NFU) NFU Sugar believes that the need for a zero tariff raw sugar ATQ in the UK tariff schedule is unjustified and unnecessary.

There are sufficient quantities of sugar available for the UK market via domestic production and existing preferential partners. The opening of a zero tariff ATQ for raw sugar will distort competition in the sugar market and lead to unfair competition for UK growers by failing to uphold environmental standards for imported product, off-shoring legitimate environmental concerns.

nfuonline.com
Britain close to abandoning hope of Brexit trade deal

Britain close to abandoning hope of Brexit trade deal

22 July 2020 (The Daily Telegraph) Ministers now believe that Britain and the EU will fail to sign a post-Brexit trade deal, with just days to go until Boris Johnson’s July deadline for an outline agreement passes.

The Telegraph has learnt that the Government’s central working assumption is that Britain will trade with Europe on World Trade Organisation terms when the transition period ends on December 31.

telegraph.co.uk
House of Commons Briefing Paper on UK Agriculture Bill 2019-21

House of Commons Briefing Paper on UK Agriculture Bill 2019-21

21 July 2021 (House of Commons) Leaving the EU means the UK is leaving the EU’s Common Agricultural Policy (CAP). The Agriculture Bill provides the legislative framework for replacement agricultural support schemes. It provides a range of powers to implement new approaches to farm payments and land management. In England, farmers will be paid to produce ‘public goods’ such as environmental or animal welfare improvements. The Bill also includes wider measures, including on improving fairness in the agricultural supply chain and on the operation of agricultural markets.

commonslibrary.parliament.uk
EU sugar exports rise as prices stagnate in the EU27 but rise in the UK

EU sugar exports rise as prices stagnate in the EU27 but rise in the UK

17 July 2020 (@sugartraders) Sugar exports from EU+UK to amounted to 92,571 tonnes in May 2020, up 17,304 tonnes, according to latest Eurostat data yesterday. EU sugar prices appear to be stagnating around 379 €/t but UK prices seem to be rising. Sugar import prices in the UK are rising quite nicely according to latest ONS data, presumably on fears of a “no deal” #Brexit and the poor outlook for the UK sugar beet crop (some say a 10% reduction in beet yields?).

Click to link to LinkedIn post for more details.

linkedin.com
August Expiry Breakdown

August Expiry Breakdown

17 July 2020 (ICE) August 2020 ICE White Sugar futures expired with 8650 lots delivered.

theice.com
UK Trade and Agriculture Commission membership announced

UK Trade and Agriculture Commission membership announced

10 July 2020 (gov.uk) The Commission represents farmers, retailers and consumers in the UK, advising Government on trade policies to adopt to secure opportunities for UK farmers.

gov.uk
It’s time for the UK to reset its relationship with African countries

It’s time for the UK to reset its relationship with African countries

10 July 2020 (ODI) Today the House of Lords’ International Relations and Defence Committee has issued its first report of the current parliament, The UK and Sub-Saharan Africa: prosperity, peace and development co-operation. The report argues that the UK should take a greater strategic interest in and seek a stronger partnership with Africa to support the delivery of the African Union’s (AU) strategy.

odi.org
Caobisco Appoints New Director General

Caobisco Appoints New Director General

10 July 2020 Today, CAOBISCO, the European chocolate, biscuits, and confectionery industry association, has appointed Muriel Korter as its new Director-General.

With 12 National Associations and 7 Direct Member Companies, the sector represents an annual production of around 12.1 million tons, a workforce of more than 300 000 people and 13 000 companies of which 99% are SMEs (Source: Eurostat).

caobisco.eu
Südzucker off to good start in fiscal 2020/21

Südzucker off to good start in fiscal 2020/21

9 July 2020 (Südzucker)

* Sugar segment cuts losses thanks to higher sugar sales revenues
* revenues fell slightly to EUR 565 (previous year: 581) million
* decline was driven by a significantly lower sales volume, partly due to reduced sugar production during the 2019 campaign
* lower demand from the sugar processing industry as a result of measures to contain the coronavirus pandemic

Beet cultivation and 2020 processing campaign

Südzucker Group’s beet cultivation area was down about 12.6 percent in 2020 from the year prior to 342,000 (previous year: 391,000) hectares. following the closure of four sugar factories. The main seeding campaign began at the end of March, about one week later than last year, amidst good planting conditions. Cool night temperatures and drought from sowing to the beginning of June resulted in delayed, extraordinary heterogeneous plant growth.

suedzucker.de
Alerte rouge à la jaunisse : les betteraviers demandent un plan d’urgence

Alerte rouge à la jaunisse : les betteraviers demandent un plan d’urgence

9 July 2020 (Aladin.farm) La CGB craint une forte baisse des surfaces de betteraves en 2021 si aucune solution n’est apportée face à la jaunisse, avec un rendement 2020 attendu au plus bas depuis quinze ans. Le syndicat demande une autorisation de traitements d’enrobage de semences pour 2021 et un plan d’indemnisation.

reussir.fr
AGRANA grows revenue and EBIT in Q1 2020/21

AGRANA grows revenue and EBIT in Q1 2020/21

9 July 2020 (AGRANA) The Sugar segment’s revenue of € 144.5 million in the first quarter was up significantly from one year before. Both higher sugar selling prices and increased sugar sales volumes led to this growth. Although EBIT was still negative at a deficit of € 1.0 million, it marked a substantial improvement compared to the same quarter of the previous year due to a more benign sales price environment.

reports.agrana.com
European Commission publishes Sustainability Impact Assessment for Mercosur FTA

European Commission publishes Sustainability Impact Assessment for Mercosur FTA

8 July 2020 (European Commission / London School of Economics) The Commission today published the draft version of the final assessment of the potential economic, social, environmental and human rights impact of the trade part of the association agreement between the European Union and Mercosur (Argentina, Brazil, Paraguay and Uruguay).

Policy Recommendations for sugar include:
 Mercosur countries with support from the EU should implement policies to manage social impacts and to increase environmental efficiency in order to mitigate the potential adverse effect of the expansion of sugar production and maximise the economics gains from the FTA. Mercosur countries will also need to address challenges related to the proper enforcement of adjustment policies.

trade.ec.europa.eu
« Je suis très inquiet pour la filière », alerte Franck Sander (CGB)

« Je suis très inquiet pour la filière », alerte Franck Sander (CGB)

8 July 2020 (le Betteravier) Les impacts agronomiques et financiers de la jaunisse sont inquiétants. Franck Sander, le président de la CGB lance un cri d’alarme. Il craint une forte baisse des rendements cette année et des surfaces en 2021, si aucune réponse n’est apportée par le nouveau ministre de l’Agriculture.

lebetteravier.fr
Britain languishes behind EU in battle for African trade

Britain languishes behind EU in battle for African trade

7 July 2020 (FT) Boris Johnson welcomed African leaders to “a new start in our business partnership” at the inaugural UK-Africa summit on Monday that aimed to promote trade opportunities after Brexit. However, other EU countries have successfully managed to maintain much stronger ties with the continent from within the bloc than Britain.

ft.com
Exclusive: Raízen, Wilmar set to end sugar trading venture RAW

Exclusive: Raízen, Wilmar set to end sugar trading venture RAW

6 July 2020 (Reuters) Brazil's Raízen, the world's largest sugar-making company, and Asian commodities trader Wilmar International are set to end their partnership in the global sugar trading joint venture RAW, four sources familiar with the process said.

reuters.com
EU-Vietnam free trade deal to take effect 1 August

EU-Vietnam free trade deal to take effect 1 August

2 July 2020 (bilaterals.org) The free trade agreement between the European Union and Vietnam, known as EVFTA, will come into force on 1 August, according to a Vietnamese government statement on 18 June.

bilaterals.org
Suiker Unie going forward under the name: Cosun Beet Company

Suiker Unie going forward under the name: Cosun Beet Company

2 July 2020 Cosun Beet Company. This is the new name announced today by the former Suiker Unie. “A name that seamlessly matches our new strategy,” says CEO Paul Mesters. “Sugar beet are the source of innovative, circular solutions. This plant offers fantastic opportunities to meet the challenges society is facing.”

cosunbeetcompany.com
UK beet farmers set to bag a bonus as sugar prices rise

UK beet farmers set to bag a bonus as sugar prices rise

1 July 2020 (Eastern Daily Press) East Anglia’s sugar beet growers are set to benefit from a market-linked bonus later this year, after EU sugar prices hit the required trigger point for the first time.

edp24.co.uk
Sugar delivered in the ICE July NY11 expiry at the lowest in six years

Sugar delivered in the ICE July NY11 expiry at the lowest in six years

1 July 2020 ( | S&P Global Platts) The front-month, July, ICE NY11 sugar future contract expired on June 30, with 253,600 mt of raw sugar physically delivered, the lowest volume for a July contract since 2014.

spglobal.com
GuySuCo mulling layoffs as financial crisis deepens

GuySuCo mulling layoffs as financial crisis deepens

1 July 2020 (Stabroek News) With no sign of financial assistance from the Government despite promises by caretaker President David Granger, the management of the Guyana Sugar Corporation (GuySuCo) is currently engaged in discussions to begin layoffs, a source close to the corporation told Stabroek News yesterday. It has been over two weeks since Granger, at a media engagement with select reporters, announced that monies will be deposited into GuySuCo’s account. To date this promise is still to materialise.

“We have not received any money yet from the government. We do not have an understanding of what is happening but it seems as if there is some undermining by authorities at the Ministry of Finance or at (government holding company) NICIL to get the money into the bank,” the source said.

stabroeknews.com
New UK body to advise on welfare and competition in farming

New UK body to advise on welfare and competition in farming

30 June 2020 (DIT via BBC) Farmers have welcomed plans for a new body to advise ministers on welfare standards and fair competition in trade deals with the US and other nations. The Trade and Agriculture Commission will make recommendations to government on how to stop the industry from being under-cut by cheaper imports and to increase export opportunities.

twitter.com
EU sugar beet areas are down 2% y-o-y, latest EC data shows

EU sugar beet areas are down 2% y-o-y, latest EC data shows

26 June 2020 (@sugartraders) The areas sown to sugar beet in the EU27+UK are down just 2% overall y-o-y for the 2020/21 marketing year, after falls of 5% and 3% in the two previous years, according to the latest European Commission DG AGRI estimates. The beet areas in France and Germany are down by 8% and 7% respectively, but the area sown in Poland is up by 5%. Please let me know if you'd like these data in Excel format.

instagram.com
AIBS : Jaunisses Betteravières

AIBS : Jaunisses Betteravières

24 June 2020 L'AIBS publie une seconde note technique sur les actions de la filière pour lutter contre les pucerons et la jaunisse. Ce document a été réalisé avec le concours de l’ensemble de la filière betteravière. Cette seconde fiche comprend notamment un point ...

itbfr.org
Patel sets regulation in place for implementation of sugar industry master plan

Patel sets regulation in place for implementation of sugar industry master plan

24 June 2020 (Creamer Media) Trade and Industry Minister Ebrahim Patel has gazetted amendments to the Sugar Industry Agreement and South African Sugar Association Constitution. He also further designated the industry in terms of the Competition Act for an exemption, which will allow industry stakeholders to begin working together to implement a master plan for the industry.

engineeringnews.co.za
Betteraves sucrières Les perspectives s'améliorent mais restent fragiles

Betteraves sucrières Les perspectives s'améliorent mais restent fragiles

25 June 2020 (Terre-net.fr) La filière betteravière sucrière va mieux, mais ce n’est pas pour autant que les choses sont définitivement solutionnées, constate François Thaury, directeur des soft commodities chez Agritel. La faiblesse de la production européenne permet aux cours de s'affranchir un peu du marché mondial et de reprendre de la hauteur. Mais avec les coûts de production qui augmentent, « il faudra s’habituer à ce que la betterave devienne une culture moins rentable ».

terre-net.fr
Has EU sugar consumption fallen post the Covid lockdowns?

Has EU sugar consumption fallen post the Covid lockdowns?

25 June 2020 (@sugartraders) According to DG Agri data released today, EU sugar stocks rose a little in April 2020, perhaps indicating that EU sugar consumption fell by maybe ≈ 200,000 tonnes as #covid19 struck?

instagram.com
Czarnikow sees possibility in white premiums weakening more

Czarnikow sees possibility in white premiums weakening more


24June 2020 (ChiniMandi) “Global sugar consumption will fall by nearly 2m tonnes (1%) this year compared to 2019, due to coronavirus lockdowns", Ben Seed, analyst at Czarnikow Group Limited, said in a conversation with ChiniMandi News.

chinimandi.com
Suiker Unie adapts company name to new ambitions

Suiker Unie adapts company name to new ambitions

24 June 2020 (BN DeStem) The name Suiker Unie will disappear from July 2. The sugar producers in Dinteloord and Groningen will continue under a new name, which will be unveiled on this day.

“The new strategy and name are responding to changing consumer needs and new market opportunities. A future-proof name ”, says Paul Mesters CEO of - now - Suiker Unie.

myprivacy.dpgmedia.net
Brexit talks hit by row over EU subsidies for farmers

Brexit talks hit by row over EU subsidies for farmers

24 June 2020 (The Guardian) Exclusive: Brussels accused of trying to stop UK government from defending British farmers. British and EU negotiators have hit a new obstacle to securing a trade and security deal after clashing over €70bn of subsidies handed to European farmers by Brussels, the Guardian can reveal. The EU’s negotiating team led by Michel Barnier was accused in the latest round of talks of seeking to block the government from defending British farmers from cut-price European imports. The row centres on the EU’s demand for what it is claimed would be an unprecedented commitment not to retaliate through tariffs on European goods even where it could be potentially shown that British farmers are being unfairly undercut.

theguardian.com
6,000 tonnes of CXL sugar licences awarded this month

6,000 tonnes of CXL sugar licences awarded this month

24 June 2020 (@sugartraders). Just 6,000 tonnes of CXL Erga Omnes sugar import licences were awarded by @euagrifood on 23 June, bringing the total to 113,740 tonnes this MY 2019/20 (45%). It is conjectured that most of this CXL sugar could be organic sugar. Additionally, 988 tonnes of sugar was imported from Central America and 1,860 tonnes from Colombia. Sugar imports from ACP and LDC countries were 1,085 tonnes to 9 June.

instagram.com
Monthly exports of sugar from the EU to third countries have slowed dramatically

Monthly exports of sugar from the EU to third countries have slowed dramatically

17 June 2020 (@sugartraders) Monthly exports of sugar from the EU to third countries have slowed dramatically. Since February, Eurostat has stopped recording third country trade to/from the United Kingdom. Excluding the UK, in April 2020, just 64,099 tonnes were exported (including IPR), to the EU’s “core” markets in Israel, Egypt and Norway. The average FOB export price in April was 418 €/t, the Eurostat data revealed.

instagram.com
Tongaat Hulett announces sale of eSwatini business

Tongaat Hulett announces sale of eSwatini business

17 June 2020 (JSE) Tongaat Hulett today announced it had entered into an agreement with eSwatini’s Public Service Pensions Fund (PSPF) to sell Tambankulu Estates for R375 million.

Tongaat Hulett CEO Gavin Hudson said the sale of Tambankulu was fully aligned with the company’s turnaround plan, and would allow Tongaat to pay down further debt. “Tambankulu is a quality, well-run business that is not core to our larger sugar business. This was a reasonable offer based on a thorough due diligence and independent valuation input that supported the price, and after due consideration the board decided it would be in the best interests of the company and its shareholders to dispose of this asset”, he said.

profiledata.co.za
Importers of bulk raw sugar from South Africa used up all 100,000 tonnes of the EU quota

Importers of bulk raw sugar from South Africa used up all 100,000 tonnes of the EU quota

16 June 2020 (sugartraders) Importers of bulk raw sugar from South Africa used up all 100,000 tonnes of the EU / SADC+M EPA raw sugar quota, according to European Commission @EU_Taxud data available online. Between 2 and 16 June, imports of sugar into the EU28 were recorded from Central America (3,393 tonnes), Colombia (2,663 tonnes), Peru (197 tonnes) and South Africa (26,774 tonnes of raws only). According to these data, 39,358 tonnes (22% of the annual total) of quota remain open to Central American origins, 43,325 tonnes (58%) to Colombia, 14,520 tonnes (100%) to Panama, 25,051 tonnes (94%) to Peru, 41,246 tonnes to South Africa for white or raw sugar only (82%) and 40 tonnes (0.2%) to Ukraine. On or about 23 June, data will be available concerning applications for "CXL sugar" and Balkans sugar imports. Please contact julianprice.com for more information if you may need it!

instagram.com
Stuck at home, the world is consuming less sugar

Stuck at home, the world is consuming less sugar

16 June 2020 (Bloomberg) The global closure of restaurants, sports arenas and cinemas means sugar demand will drop this season for the first time in four decades, according to Czarnikow Group. Drink and confectionery sales at giants including Coca-Cola Co. and Nestle SA have fallen, and while economies start to reopen, it’s unclear how quickly demand will recover as incomes and employment fall.

bnnbloomberg.ca
European Commission kicks off major EU trade policy review

European Commission kicks off major EU trade policy review

16 June 2020 (europa.eu) Today, the European Commission launched a major review of the European Union’s trade policy, including a public consultation seeking input from the European Parliament, Member States, stakeholders and civil society. The Commission’s objective is to build a consensus around a fresh medium-term direction for EU trade policy, responding to a variety of new global challenges and taking into account the lessons learned from the coronavirus crisis.

trade.ec.europa.eu
Alteo ferme sa raffinerie par manque de sucre

Alteo ferme sa raffinerie par manque de sucre

15 June 2020 (defimedia.info) Alteo, le premier producteur de sucres au pays, annonce la fermeture prochaine de sa raffinerie.

defimedia.info
Grounded airlines a silver lining for SA sugar industry

Grounded airlines a silver lining for SA sugar industry

13 June 2020 (Shukela Sugar Magazine) Bio-jet fuel has been named as one of the most promising by-products of sugarcane production and is high on the list of a raft of solutions tabled to rescue the South African sugar industry from collapse.

shukela.co.za
GuySuCo facing closure if no $$ from govt - GAWU

GuySuCo facing closure if no $$ from govt - GAWU

10 June 2020 (Stabroek News) The main sugar Union GAWU says it has learnt that the Guyana Sugar Corporation Inc (GuySuCo) is facing the prospect of closure having exhausted its finances and is desperately seeking the support of the Government. Within the past months, Stabroek News had reported that the company has found itself in a financial crisis and was uncertain how it would meet its payroll requirement.

stabroeknews.com
Thailand approves $300 million aid for drought-stricken sugarcane farmers

Thailand approves $300 million aid for drought-stricken sugarcane farmers

10 June 2020 (Reuters) Thailand approved 10 billion baht ($319 million) in aid on Tuesday for its sugarcane farmers, whose output has been hit by drought.

reuters.com
ACP Sugar Group urges UK and EU to protect the value of ACP and LDC sugar

ACP Sugar Group urges UK and EU to protect the value of ACP and LDC sugar

9 June 2020 (ACP Sugar) The ACP-LDC Sugar Industries Group has today published a statement concerning a possible UK EU free trade agreement, urging the parties to protect the value of ACP & LDC sugar access to the European markets. More info & download here: https://lnkd.in/eqXQgYS

linkedin.com
UK Statement to the WTO Council for Trade in Goods

UK Statement to the WTO Council for Trade in Goods

10 June 2020 (gov.uk) The UK's Ambassador to the WTO and UN in Geneva, Julian Braithwaite, delivered this statement at a meeting of the WTO’s Council for Trade in Goods on 10 June 2020.

gov.uk
Free Sugaronline webinar on "Sugar Consumption in the Post-COVID19 Market"​

Free Sugaronline webinar on "Sugar Consumption in the Post-COVID19 Market"​

This 17 June 2020, at 09:00 am London, we'll all be able to ask questions about sugar consumption to Tom McNeill of Green Pool Commodity Specialists, Maria do Carmo Afonso of Rabobank and Somnath Chatterjee of India's ITC Limited. The issue of sugar consumption is clearly and particularly critical for the sugar market outlook at the moment, and quite complex too. I'm planning to ask if it's even possible reliably to estimate sugar consumption, even in "developed" markets, and even in "normal" times let alone in these "new normal" times? I'm sure there will be lots more interesting questions ...

With such a truly excellent line up of experts, it should be a really interesting debate. And it's free to register at https://us02web.zoom.us/w/85941209417

linkedin.com
Bayer and NFU battling to overturn neonicotinoids ban

Bayer and NFU battling to overturn neonicotinoids ban

4 June 2020 (Farmers Weekly) Lawyers acting on behalf of the NFU are in court battling to overturn a ban on neonicotinoid pesticides, which have been linked to harming bees.

fwi.co.uk