In Germany, Suedzucker, Europe’s largest sugar refiner, said it is suffering from the steep fall in sugar prices in recent months and plans to step up exports to try and compensate. According to Reuters, white sugar prices have fallen by about 40 percent since early 2017, with white sugar futures hitting more than nine-year lows in April and raw sugar at 2-1/2 year lows as the global supply glut weighed.
The company confirmed its previous forecast that its sugar sector will make an operating loss of between 100 million euros and 200 million euros ($118 million to $236 million) in the financial year that began in March against an operating profit of 139 million in the previous year. The group has large non-sugar businesses ranging from biofuels to pizzas and starches.
The end of EU production quotas means new opportunities to export sugar and the company must advantage of these, Suedzucker said.
“To do so, we have identified attractive markets, among others the Middle and Near East, North and West Africa, eastern Europe and central Asia,” it said. “The Far East also always presents an opportunity.”