FDBusiness.com

Escalating corn costs have forced Tate & Lyle to raise the price of its corn sweeteners, supplied to food and drink manufacturers, by 20%. Tate & Lyle has had to cope with a corn price rise of 40% over the past year. The increased cost of keeping its corn silos full is expected to push up net debt from its current level of £482m to £540m.

Regarded as a cheaper alternative to sugar, corn sugar (high fructose corn syrup) is used as an ingredient in a wide range of food and drink products. Following the recent disposals of its molasses business for £70m and its EU sugar refining business for £212m, Tate & Lyle is focusing on its developing its speciality food ingredients business, supported by cash generated from bulk ingredients.