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German Chocolate Industry Says Cannot Find Enough Sugar

Author:JK Sucralose Inc.    Update Time:2011-02-18

German Chocolate Industry Says Cannot Find Enough Sugar


European sugar supplies are becoming increasingly tight and companies are finding it difficult to buy enough of the sweetener for their needs, German chocolate and confectionery industry association BDSI said on Friday.
"Ever more companies are having problems in fully covering their requirements for sugar in the current season," BDSI Chief Executive Klaus Reingen said in a statement.

Global sugar prices reached a 30-year-high in February on fears about tight global supplies.

The European Union's cutback on its subsidies for the sugar industry has reduced EU production to about 80 percent of the bloc's needs, the BDSI said.

The remaining 20 percent needed was to have been covered by imports from less developed nations and former European colonies in the African, Caribbean and Pacific regions, it said.

"Imports from these countries, which should have compensated for the production cuts in Europe, are currently being sold elsewhere because of the high global sugar price," the BDSI said. "The result is a shortage of quota sugar in the EU."

The EU restricts output of some subsidised crops such as sugar with quotas. Sugar produced inside the output quota may be sold as food.

Out-of-quota sugar is excess sugar produced above the EU's national sugar output quotas. Under EU rules such sugar can be sold for industrial use such as bioethanol or chemical output but cannot normally be sold as food.

Reuters revealed on Feb. 10 that the EU Commission, the bloc's executive arm, is considering allowing the sale of up to 500,000 tonnes of out-of-quota sugar for food use.

"The BSDI welcomes these proposals from the EU Commission," the statement said. "A prompt and rapid decision is required. The BDSI is calling for a quick decision."