Cane Refining in the EU Prospects & Issues Brussels, 13 th July - - PowerPoint PPT Presentation

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Cane Refining in the EU Prospects & Issues Brussels, 13 th July - - PowerPoint PPT Presentation

Mar 19, 2023 234 likes •368 views

European Sugar Refineries Association Cane Refining in the EU Prospects & Issues Brussels, 13 th July 2016 Laura Girol ESRA Executive Director laura.girol@sugarrefineries.eu Cane Refining in Europe ESRA was formed in February 2011

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SLIDE 1

Cane Refining in the EU – Prospects & Issues

Brussels, 13th July 2016

Laura Girol ESRA Executive Director

laura.girol@sugarrefineries.eu

European Sugar Refineries Association

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SLIDE 2

Cane Refining in Europe

  • ESRA was formed in February 2011
  • 11 refineries across EU
  • Over 3500 high quality industrial jobs
  • Provide choice to 2000 customers
  • Exclusively supplied through

preferential trade arrangements

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Tate & Lyle Sugars SFIR Agrana Lemarco Sidul RAR Zaharni EAD

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SLIDE 3

Why Europe Needs Cane Refiners

  • Choice
  • Competition
  • Food security
  • Development policy
  • Link to global markets
  • Industrial jobs

Two of the 26 cane sugar refineries in Europe

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SLIDE 4

Concentration of EU Sugar Market

4 1% 1% 1% 1% 1% 2% 3% 3% 5% 6% 7% 8% 10% 12% 14% 24% 0% 5% 10% 15% 20% 25% Iscal Sugar Hellenic Sugar Eridania ACOR RAR SFIR Polski Cukier Other Tate & Lyle Sugars Royal Cosun Pfeifer & Langen Cristalco Tereos Nordzucker British Sugar Sudzucker

Top 7 is 81%

Source: Tate & Lyle Sugars

  • Competition authorities very concerned and closely monitory the sector
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SLIDE 5

Unfair Result of CAP Reform

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Until 2017 After 2017

Beet

Production limited by quotas

Unlimited production allowed

Isoglucose

Production limited by quotas

Unlimited production allowed

Cane Refining

Limited to preferential suppliers 98€/tonne duty on CXL imports 339€/tonne duty on other supply

X NOTHING CHANGES !!!

  • Cane refiners‘ will still face raw material LIMITATIONS in VOLUME and ORIGIN
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SLIDE 6

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Source: EU Commission. Tonnes in WSE for 2014/15

Origin of EU cane imports

ACP & LDC Duty free - Quota free 1,8 – 2,1 mt CXL TRQ with 98€/tonne duty 0,7 mt FTAs (since 2012) TRQs zero duty 0,5 mt

Mauritius Swaziland Guyana Zimbabwe Fiji Jamaica Belize Barbados Kenya Dominican Republic Zambia Mozambique Malawi Laos Cambodia Sudan Uganda Benin Sierra Leone Madagascar Australia Brazil Cuba India Central America Panama Colombia Peru

EPAs EBA CXL new FTA s

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SLIDE 7

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European Sugar Imports Projections

Source: DEFRA

  • Raw sugar imports expected to significantly decrease
  • This will leave less room for EU refiners
  • Big negative impact on ACP/LDC raw sugar suppliers
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SLIDE 8

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Impact of 98€ CXL import duty

With 98€ duty CXL sugar is NOT imported Refiners are deprived of 1/3 of its supply! Without 98 € duty CXL sugar IS imported Keeping refiners part of the EU supply mix

Source: LMC International

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Impact of additional FTAs imports

Source: LMC International

  • Additional FTA raw sugar imports makes EU supply more competitive
  • New FTA raw sugar imports guarantees refiners' viability as part of the EU supply
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FTA sugar quantities

Agreement Country Date Quantity Growth Central America Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua June 2012 150.000 any 4,500 Panama June 2012 12.000 any 360 Andean Community Colombia June 2012 62.000 any 1.860 Peru June 2012 22.000 any 660 Ecuador July 2014 15.000 raw 10.000 white 450 150 SADC EPA South Africa July 2014 100.000 raw 50.000 any none ASEAN Vietnam Dec 2015 20.000 any none

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SLIDE 11

Proposals for working together

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  • 1. Towards the suspension of the CXL 98 € duty
  • 2. Towards future FTAs with raw cane sugar
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SLIDE 12

Thank you for your attention!

Laura Girol ESRA Executive Director

laura.girol@sugarrefineries.eu

European Sugar Refineries Association