FDBusiness.com

EU Sugar Shortage a Real Concern

 Breaking News
  • Zero Alcohol Drinks Growing 10% a Year in Europe A new report from Zenith Global on European Zero Alcohol Drinks forecasts sales growth of almost 10% a year over the next five years. Zenith Global estimates the European market at €5.9 billion in 2018. This would take 2023 value to €9.3 billion. “The United Kingdom is expected to achieve the highest growth rate at 30% [...]...
  • CO2 Refrigeration System For BrewDog’s Eurocentral Warehouse Star Refrigeration has been commissioned a second time to work with Scottish multinational craft beer company BrewDog as it continues to expand. The cold storage and distribution specialists successfully delivered an eco-friendly, cost effective solution for Europe’s first fully refrigerated beer warehouse. Having recently acquired the brand new Eurocentral warehouse in Motherwell, BrewDog commissioned Star to [...]...
  • ABF to Enter Joint Venture in China Associated British Foods and Yihai Kerry Arawana Holdings, a subsidiary of Wilmar International, are to form a 50:50 joint venture in China for the manufacture, sale and distribution of yeast and bakery ingredients. The joint venture will acquire existing Chinese yeast and bakery ingredients activities of AB Mauri, a division of ABF, and will leverage [...]...
  • Premium Products and Value Prices a Hit With Irish Grocery Shoppers The latest figures from Kantar show that overall the Irish grocery market grew by 4.2% over the 12 weeks to 19 May 2019, with Dunnes Stores holding off the challenge of Tesco and retaining pole position. Respective growth of 12.6% and 5.9% for Aldi and Lidl means that the retailers’ combined grocery market share stands [...]...
  • Lactalis Expands in Italy Lactalis Group is strengthening its position within the Italian dairy industry by acquiring cheese maker Nuova Castelli for an undisclosed sum. Operating 13 production sites in Italy and three abroad – in Poland, Hungary and the US – Nuova Castelli specialises in the production and distribution of AOC cheese such as Parmigiano Reggiano, Mozzarella di [...]...

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
  • June 25, 2019BevExpo 2019
  • October 17, 2019Future Food-Tech
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements