2017 to be a crucial year for sugar industry

2017 will be a crucial year for the sugar industry in Europe. Indeed, as of October 1, the annual sugar production cap of 13.5 billion tons pa set in 1968 will be lifted. By eliminating such limit, the minimum price of €404 per ton of refined white sugar and €25 per ton for sugarbeet will be abolished as well. Liberalizing the sugar market could lead to a drop in prices, like in the case of the milk market. The European sugar industry is already under strong pressure. Indeed, 40% of sugar refineries has already closed down, despite a steady, significant rise in sugar demand in Asia, The Middle East and Africa. France is, in fact, the main European producer, thanks to Tereos (Beghin Say, La Perruche), Cristal Union (Daddy) and Saint-Louis. These groups are likely to increase their production by 10 – 15% in order to cut manufacturing costs. (Source Les Echos)