• The price of sugar in the European Union has seen unprecedented increases recently.
The price of sugar in Europe has increased in the last year almost three times compared to the previous year. Agency Reuters conveys that these increases would be the result of extreme weather conditions and escalating energy costs. Under these conditions, it seems that more and more confectioners are considering the possibility of reducing production.
The record rise in the price of a widely used product presents a challenge at EU level as it tries to moderate inflation and preserve a decent standard of living for the population.
"We are in a sugar market crisis. We fear that our companies, and especially SMEs, may soon face a difficult choice: whether or not to temporarily stop production or whether to reduce production this winter. " - says Muriel Korter, general director of the Association of Confectioners in the European Union (CAOBISCO), cited by Reuters.
Traders and industry analysts confirm that spot prices for refined white sugar are traded in the European Union at around 1.050 euros/ton, being the highest price recorded so far. Globally, sugar prices are roughly half the price of European quotations.
Decrease in production
The high price is explained by the fact that the sugar-producing industry is a big consumer of energy, especially of gas, and the Russian-Ukrainian war caused a significant increase in the price of gas throughout the European Union. "Sugar prices in the EU are at an all-time high, factories are using natural gas and look at what prices have reached" says Julian Price, a consultant at julianprice.com.
Association of German Confectioners, BDSI, tells Reuters that Germany, the largest producer of sweets in the EU, is in danger of losing its competitiveness not only to countries outside Europe, but even to other European countries.
For the October 2022 season, the European Commission forecasts a decrease in sugar production by 6,9%, reaching 15,5 million tons, while sugar consumption is estimated to be around 16,6 million tons . The third largest producer of sugar globally, the European Union has faced a decrease in production in recent years, due to low prices that discouraged planting, but also to unfavorable weather conditions.
Article written by Gabriela Dan, Editor of Arta Albă.
Read on White Art and: Sugar, the history of sweet gold
