London — EU sugar companies have emerged from the cocoon of production quotas and are now fighting to survive in a fiercely competitive world market with prices and profits plunging. The EU’s largest sugar producer, Suedzucker, has said it expects to report an operating loss of €100m-€200m in its sugar segment in 2018-19 while its rivals are also struggling. "At the current price level, there is hardly a sugar company in Europe which can still produce at a break-even," a spokesman for the EU’s number two producer, Nordzucker, said. The EU abolished limits on sugar beet production at the end of September 2017, dramatically boosting output and paving the way for the EU to become a net exporter for the first time in more than a decade. The rise in EU production has come at a time when appetite for sugar is declining in the increasingly health-conscious trading bloc, throwing supplies onto a world market already awash with the sweetener. "Everyone can produce as much as they want and in...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.