FDBusiness.com

EU Sugar Shortage a Real Concern

 Breaking News
  • Royal A-Ware and Glanbia Ireland to Build New €140 Million Continental Cheese Facility Royal A-ware, a leading global cheese and dairy producer in The Netherlands, and Glanbia Ireland, Ireland’s largest dairy processor, plan to enter a strategic partnership that proposes to build a new continental cheese manufacturing facility in Belview, County Kilkenny, Ireland. It is proposed that a total of €140 million will be invested in this best-in-class [...]...
  • Pladis Appoints Global CEO Pladis, one of the world’s leading snacking companies, has appointed A Salman Amin as global CEO. He will take over the leadership officially in February. With a strong reputation in the food and drink sector, Salman Amin takes up the role after a highly successful international career spanning 30 years and three continents. Most recently, he [...]...
  • ADM Adds New Line of Specialty Tapioca Starches For the EMEA Region Archer Daniels Midland Company has announced a long term partnership with General Starch Limited (GSL), a leading tapioca starch producer located in Thailand. ADM will have exclusive distribution rights of the GSL modified tapioca starch products in the majority of the European countries, as well as in the Middle East and Africa. This range of [...]...
  • Louis Dreyfus Company to Exit Dairy Louis Dreyfus Company, a leading international merchant and processor of agricultural goods, has announced its decision to exit its dairy business by mid-2019. The move is in line with the company’s strategy over the past three years to exit non-core areas and refocus on its core businesses, including investments in origination markets and expansion along [...]...
  • Lucozade Ribena Suntory to Invest £13 Million in UK Factory Japan-based Suntory Beverage & Food is investing £13 million in its UK-based subsidiary Lucozade Ribena Suntory to install a new, high-speed bottle filler at its factory in Coleford, Gloucestershire. The new filler will produce 1.3 million bottles a day and will be instrumental in increasing productivity and efficiency at the Lucozade Ribena Suntory factory. The investment [...]...

EU Sugar Shortage a Real Concern

EU Sugar Shortage a Real Concern
February 01
12:54 2011

Food and Drink Industry Ireland, the main trade association for the food and drink industry in Ireland, has voiced concern about the security of sugar supply in the EU. World market sugar prices reached a 30-year high in November and 2011 will be the third year that global production/consumption has been in deficit. The group says that its members are having difficulty sourcing sugar and that a larger quantity of sugar needed to be made available within the EU.

Commenting on the issue, FDII director Paul Kelly says: “Most of the sugar consumed in Ireland is produced in the EU, which still operates import tariffs. While EU sugar refiners have covered 90% of their requirement, high prices and availability problems now mean there is a shortage of supply. In Europe as a whole, there is not enough sugar to cover existing supply contracts and this is beginning to have a major impact on many Irish food and drink companies.”

He continues: “This problem has been exacerbated by recent indications from the EU that it would be issuing 350,000 tonnes of export licences for sugar. This means that a large quantity of sugar will exit the EU, which is particularly unhelpful at a time when sugar supplies are scarce. FDII has called for this sugar not to be exported and instead to be made available to EU consumers. The European Commission’s sugar management committee has postponed a decision on this matter on two occasions in recent months. This uncertainty is not helping the situation.”

When supplies are scarce, small manufacturers find it more difficult to source supplies on the markets. Currently sugar can be sourced, but Irish food companies will have to pay exceedingly high prices to import it. The situation raises fears over security and quality of supply of the commodity. While the uncertainty remains, Irish food companies will have difficulty developing future production plans and may have to stop taking new business opportunities.

Paul Kelly concludes: “The current situation is another unwelcome example of growing input price inflation for an essential ingredient in food production. It is extremely unhelpful for end-manufacturers to have basic foodstuff commodities subject to speculation and supply constraints. Volatility is here to stay and problems are unlikely to ease until at least next year’s harvest, especially as traders remain attracted to foodstuff commodities.”

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements