October 15, 2014

Analysts are predicting worldwide shifts in sugar trade flows when the EU – the world’s third largest sugar producer and second largest sugar consumer re-enters the global sugar market. The EU sugar industry is expected to become a major player in 2017 after Brussels abolishes sugar production quotas, minimum guaranteed prices for sugar beets, and exports limits.   Europe retreated from international markets in 2006 after the World Trade Organization (WTO) issued claims of sugar dumping, however in 2017 Europe is expected to once again become a global market influence as production limits are lifted and exports increase.  In 2013/14 EU beet sugar production was 17 million tons – after 2017 industry experts believe that production could increase between 15% – 20% with France having the biggest potential for growth with expectations of a 25% increase in production to 5.5 million tons.  On the positive side, because European sugar is made from beets, an annual crop, it is believed that the presence of Europe in international markets will act as a stabilizer, reducing volatility since EU producer will be able to quickly react to fluctuations in market supply conditions and prices.  To read further, including about the challenges these changes will cause for sugar refiners:

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