downloads - Nordzucker AG

More documents

Recommendations

Info

| A LOOK AT THE MARKET | THE SUGAR MARKET European Commission approves additional imports from the global market European Commission: 1.2 million tonnes of additional sugar. Since the 2006 amendment to the EU sugar market regime, the EU has only been able to meet around 85 per cent of its needs in the food industry from domestic production. The EU has since become a net importer of sugar and, in particular, has become dependent on imports from so-called ACP / LDC countries (ACP = former colonies of France and the UK in Africa, the Caribbean and the Pacific; LDC = least developed countries). However, these imports do not come automatically. If the world market price is above the prices which can be achieved in the EU, there is only a limited incentive for the ACP / LDC countries to sell their sugar to the EU. In order to prevent a potential shortage of supply in the EU market, the European Commission has the option of ensuring a greater supply of sugar. There are two particular instruments available here: on the one hand, the conversion of non-quota sugar to quota sugar which may then be used in the food sector and, on the other, allowing additional imports with reduced import duties. As Akzente reported, the European Commission already made use of both of these instruments in the two previous sugar marketing years. Approving sugar for human consumption would relieve the market Given that the European Commission also expects supplies to be tight in the EU’s sugar market in the current 2012/2013 financial year, it decided in January 2013 in the Management committee to bring an additional 1.2 million tonnes of sugar to the EU market. “With human consumption of around 16.9 million tonnes, this amounts to around seven per cent of annual sugar consumption in the EU’s food sector,” says <strong>Nordzucker</strong> market expert Dr Klaus Schumacher. Half of this, totalling 600,000 tonnes, comes from the conversion of nonquota sugar to quota sugar. The applications for this approval were made by the sugar producers (maximum 50,000 tonnes per legally independent corporate entity). The European Commission divided the release of the 600,000 tonnes into four tranches, each with 150,000 tonnes. In view of the fact that the volumes applied for were much higher, allocation was made on a pro-rata basis. If non-quota sugar is released then levies must be paid. These are below the usual rate as a result of the special measures taken (see image). The remaining 600,000 tonnes approved in January may be imported from any non-EU country with reduced import duties. This volume may not be imported all at once, but must be divided into a total of four tender procedures. Four tender procedures in 2013 “In these so-called import tender procedures, the interested companies make a bid as to the amount of import duties per tonne they would be prepared to pay for a certain quantity of additionally imported sugar. Approval is then given to the bidder who offered to pay the highest import duties,” explains Klaus Schumacher. In the course of these four tenders, offers were accepted for a total of 371,000 tonnes of raw sugar and 174,000 tonnes of white sugar. The reduced import duties were between EUR 141 and EUR 195 for raw sugar per tonne and between EUR 161 and EUR 240 per tonne for white sugar. The European Commission expects that the additional supply of 1.2 million tonnes of sugar will ensure sufficient stock levels until the end of the 2012/2013 sugar marketing year, and thereby ensure adequate supply in the market. tm, nt 16
731 per tonne [as of April 2013]. As a result, it is above the reference price of EUR 404 per tonne. Interview In contrast to the situation around two years ago, when the global market price was sometimes above the EU price, it is currently at EUR 391 per tonne, well below the EU market price and even on a par with the reference price. The gap is therefore now widening significantly in the other direction. However, the statistics do not tell the whole truth, as they reflect prices from contracts which are currently in effect and which were signed last year in some cases. The market situation today is different. Prices for new contracts and for spot sales have fallen. Global market prices are currently at a much lower level than in July 2012. The reason for this is that harvests have been good, leading to an increase in stockpiles in the global market. Nevertheless, the European Commission expects supplies to be tight in the EU’s sugar market during the current sugar marketing year. Reasons cited for this include higher consumption levels than previously expected and the resulting smaller stockpiles. Consequently, the European Commission has introduced measures to bring an additional 1.2 million tonnes of sugar to the EU market by means of import tenders and allowing non-quota sugar to be used as well. Nina Tatter spoke to the Chief Marketing Officer, Mats Liljestam. How high are sugar prices in the global and EU markets at the moment? Mats Liljestam: The average EU market price as indicated in the EU Commission’s price reporting has been very stable in recent months and is currently at EUR What do you think of the release of 600,000 tonnes of non-quota sugar by the EU and the lower customs duties for imports of another 600,000 tonnes of sugar from the global market? What does this mean for <strong>Nordzucker</strong>? Mats Liljestam We have been involved in the process to release non-quota sugar but, in actual fact, this measure wasn’t really necessary as the market has a sufficient supply of sugar. On the contrary, these steps result in increases of stockpiles in the EU and we had to inform our beet farmers that they should grow less beet for the 2013/2014 campaign. Measures used by the European Commission to avoid supply shortages in the EU Measure 1: Allowing additional imports with reduced import duties: Measure 2: Approving the conversion of non-quota sugar to quota sugar for use in the food industry: Reduced customs duties for imports in 2012/2013: (in EUR per tonne) Raw sugar 141–195 White sugar 161–240 Normal customs duties for sugar imports to the EU: Duties levied for the European Commission’s special measures: between EUR 148 and EUR 224 per tonne Normal duty: EUR 500 per tonne Raw sugar 339 White sugar 419 Akzente July 2013 17
Page 1 and 2: Akzente News from Nordzucker | Issu
Page 3 and 4: | Editorial | “We are on the look
Page 5 and 6: Talking to … People at Nordzucker
Page 7 and 8: 1 2 4 You can find more information
Page 9 and 10: Annual Report 2012/2013 Hartwig Fuc
Page 11 and 12: COMMENT BY HARTWIG FUCHS Accelerati
Page 13 and 14: Not a record year In almost all of
Page 15: Energy efficiency and CO 2 savings
Page 19 and 20: Four values - one company Responsib
Page 21 and 22: Everything under control: whether i
Page 23 and 24: Summer with Dansukker Nordic Sugar
Page 25 and 26: Axel Aumüller COO Nordzucker AG Pe
Page 27 and 28: | CLICKED ON | Looking online for N

downloads - Nordzucker AG

Create successful ePaper yourself

Delete template?

Save as template?