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Mannheim, 2007-10-12

Südzucker sees no market balance for 2007/08 as yet

The EU Commission announced on 11 October 2007 that, for the current sugar marketing year (Oct.-Sept.) 2007/08, it will not be further increasing the preventive withdrawal of 2 million tonnes of quota sugar already enacted in February 2007, since in its view, the sugar market would be balanced in 2007/08.

Mannheim, 2007-10-12

Südzucker sees no market balance for 2007/08 as yet

The EU Commission announced on 11 October 2007 that, for the current sugar marketing year (Oct.-Sept.) 2007/08, it will not be further increasing the preventive withdrawal of 2 million tonnes of quota sugar already enacted in February 2007, since in its view, the sugar market would be balanced in 2007/08. The EU Commission bases this view in particular on the effects of the withdrawal and the fact that it had granted a special opportunity to export sugar from the EU. Südzucker welcomes the associated decision by the EU to allow the sugar industry sufficient quota sugar exports in the 2007/08 sugar marketing year, although this can only have any effect if imports are also limited.
In Südzucker's opinion, however, these measures are not sufficient to achieve a market balance in the EU as early as 2007/08. At most, the pressure triggered in this way will accelerate the voluntary quota surrender which the EU is aiming to achieve through the reform. The EU had considerably improved the terms for this in September.