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German Sweets Industry Cannot Buy Sufficient Sugar

Author:JK Sucralose Inc.    Update Time:2011-05-30

German Sweets Industry Cannot Buy Sufficient Sugar


European sugar supplies remain tight and German manufacturers cannot buy enough despite European Union moves to get more of the sweetener on the market, the German chocolate and confectionery industry association BDSI said on Friday.
"Supply tightness on the European market has not been solved despite EU action," the BDSI said in a statement. "On the contrary, confectionery manufacturers are faced with supply gaps and dramatic price rises."

The European Union on Thursday decided to open a 200,000 tonne duty-free import quota for raw and white sugar and approved a new system of imports at reduced customs duties.

The EU Commission said the decision to approve extra imports was in response to high world sugar prices, which have limited imports from the bloc's traditional African, Caribbean and Pacific (ACP) suppliers.

Global sugar prices reached a 30-year-high in February on fears about tight global supplies although they have since dropped away from their peaks.

The EU restricts output of some subsidised crops including sugar with quotas. Sugar output over the EU quota cannot be sold as food but may be sold for industrial use such as bioethanol output.

The European Union's farm reforms and cutback of sugar subsidies had reduced EU production of quota sugar to about 85 percent of the bloc's needs, the BDSI said.

"It is simply absurd that there is enough sugar in Europe to produce bioethanol but not enough for food," BDSI Chairman Dietmar Kendziur said in the statement.

The BDSI last year called for the EU to allow more non-quota sugar to be sold as food.

Germany's second-largest sugar refiner Nordzucker said on Thursday it will raise imports of sugar from outside the EU as it cannot not buy enough in Europe after the EU reforms.

High commodity costs are creating a major burden for Germany's sweets industry and 57 percent of companies in a new BDSI survey said their business position in the first quarter of 2011 was worse than at the same time in 2010, the association said.

High prices for wheat, cocoa, vegetable oils and hazelnuts were a major burden, the BDSI said.