EU Sugar Shortage a Real Concern

 Breaking News
  • Ornua Delivers Record Revenue Ornua, Ireland’s largest exporter of Irish dairy products which supplies to over 110 countries worldwide, has reported record revenue of €2.1 billion for the year ended 30 December 2017. It marks the first year of Ornua’s new five-year growth plan, ‘Ornua 2021’, which positions the business as a leading global dairy organisation that delivers results [...]...
  • Danish Crown Becomes European Market Leader in Pepperoni Toppings For Pizzas Danish Crown has acquired the Danish pepperoni giant DK-Foods to become the European market leader in pepperoni toppings for pizzas. DK-Foods will operate as a separate business unit under Danish Crown’s subsidiary Tulip Food Company and will spearhead the group’s global focus on pizza toppings. Pizza is the favourite choice of fast food in Denmark, and [...]...
  • Iceland Seafood International Acquires Oceanpath Iceland Seafood International is acquiring Oceanpath Group, the leading fresh fish company in Ireland owning the iconic Dunn’s of Dublin brand, which has been operating since 1822. The acquisition marks a significant step in Iceland Seafood International’s strategy of delivering strong organic growth combined with strategic acquisitions of first rate seafood companies into the group. Iceland [...]...
  • KHS Presents Innovative Block Systems For the Sensitive Range Yoghurt is no longer spooned out of the pot but drunk. Breakfast is no longer just eaten at the kitchen table but also on the hoof. And it should all be as healthy and sustainable as possible. This is one of the reasons why the demand for smoothies, milk and dairy products is steadily growing. [...]...
  • MOGUNTIA Establishing New Future-oriented IT Infrastructure With Infor Infor, a leading provider of industry-specific cloud applications, has announced that MOGUNTIA FOOD GROUP, a spice producer focusing on meat processing based in Basel, Switzerland, has decided to introduce Infor’s Food & Beverage suite in the cloud to consolidate its IT infrastructure. This will help enable MOGUNTIA to adhere to customary certifications more efficiently and [...]...

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



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 21, 2018World Olive Oil Exhibition
  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here