Rabobank: sugar market faces “strong headwinds”30 Dec 2014
Strong headwinds look set to impact the sugar industry, with abundant global sugar stocks continuing to weigh on world market prices, according to Rabobank’s Sugar Quarterly Q4. Although prices have been under pressure for some time, projections suggest that world production in 2014/15 will be little different from the previous year. “80% of global sugar […]
Strong headwinds look set to impact the sugar industry, with abundant global sugar stocks continuing to weigh on world market prices, according to Rabobank’s Sugar Quarterly Q4. Although prices have been under pressure for some time, projections suggest that world production in 2014/15 will be little different from the previous year.
“80% of global sugar production today comes from cane. Cane is a semi-perennial crop, meaning that if farmers don´t like the current cane price, it nevertheless takes them time to switch land out of cane into other crops. That is one reason for the slow response to low prices. Another reason is the diminishing incentive to switch to other crops, given that the prices of many other agricultural commodities are also falling along with sugar prices,” said Rabobank’s Andy Duff.
The principal driver of price developments has been the continued weight of global sugar stocks on the market, currently predicted to diminish only modestly over 2015. At this stage, it appears that global production in the 2014/15 international crop year has not responded significantly to low prices, though time remains for revisions to forecasts for important countries.
Other influences on price movements include the effect of the strong US dollar; pressuring international sugar prices, while also sustaining the value of world market sugar in local currency terms in key exporting countries, such as Brazil. In addition, developments in oil prices over the last three months have emerged as a new potential driver of prices in 2015.
EU: EU production is forecasted at 18.6 million tonnes raw for the 2014/15 marketing year, a 12% YOY increase from 2013/14.
India: Forecast sugar production was revised up to 25.5 million tonnes, as a result of increased planting, and favourable monsoon rains.
Mexico: Sugar production in 2014/15 stands at 6.2 million tonnes raw value. Some downside risks remain due to the wet autumn’s impact on yields.
Brazil: As the cane season draws to a close, Rabobank estimates Brazil’s 2015/16 crop as between 550 million to 580 million tonnes.
US: With a tight balance sheet, reduced beet crop and an ongoing trade dispute with Mexico, US sugar prices have risen significantly and are expected to remain firm.
Australia: Production should reach 4.6 million tonnes this year. Below-average rainfall forecasts and the potential of an El Nino event raises concerns for 2015.
Indonesia: Indonesian sugar refiners are nervous. At the time of writing, the government has yet to allocate import quotas for 2015. Meanwhile, domestic production lags rocketing local demand.
Thailand: The 2014/15 crop is not expected do well. Sugar production is projected to be around 12% lower than last year’s 11.9 million tonnes.
China: Yet another decline in sugar production level is expected to result in a 12% decrease in production versus the previous season.
Award-winning startup uses enzymes to cut sugar in fruit juice
31 Jan 2019
Fruit juice has come under fire for its high sugar content in recent years, but an Israeli startup called Better Juice has developed an enzyme technology that cuts sugars by up to 80% without adding or subtracting anything from the juice.Read more
Food Ingredients North America trade show to debut at SupplySide West in 2019
16 Oct 2018
Informa announces combination of two leading global events to create U.S. “super show” for food, nutrition and health marketRead more
Mintel highlights innovative, surprising new products in 2018
15 Aug 2018
Food and drink innovation in 2018 continues to be influenced by flavour extremes and the impact of social media in spreading visually stimulating and fun concepts, notes Chris Brockman, EMEA Research Manager at Mintel.Read more
Glanbia announces performance nutrition ingredients
25 May 2018
Glanbia Nutritionals has announced what it describes as two new pioneering and innovative performance nutrition ingredients for formulation in functional beverages in Europe, the Middle East and Africa.Read more
Ecotrophelia UK shortlist announced
24 May 2018
The growing trend for plant-based diets has inspired the teams that have entered this year’s student food innovation competition – Ecotrophelia UK. All five of the shortlisted products are meat-free and four are also vegan.Read more
Healthcare continuum drives Lonza growth
10 May 2018
Lonza has reported what it describes as a positive start to 2018 with businesses along the healthcare continuum as growth drivers.Read more
Arla enters breakfast food-to-go market
9 May 2018
Arla Foods is set to launch into the breakfast food-to-go market with the introduction of its new Milk & Oats range of ready to drink beverages.Read more
Eurofins to acquire Covance Food Solutions
7 May 2018
Global life sciences company LabCorp has announced that it has entered into a definitive agreement under which Eurofins Scientific will acquire the Covance Food Solutions business from LabCorp for $670 million.Read more
Engaging with the Instagram generation
3 May 2018
Colourful, exotic and unusual foods are on the rise as a growing number of consumers look for food experiences they can share on social media.Read more
New shake makes children taller
1 May 2018
Nutritional Growth Solutions is introducing Healthy Height, a kids’ protein shake the company says is clinically shown to improve children’s height, to the European market.Read more
Are you a supplier
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation