Brussels, 05/03/2014 (Agence Europe) - On 27 March, the management committee of the EU will discuss, but it is by no means certain that it will vote on, the measures called for by the European Commission to improve supplies to the sugar market. Unlike farmers, who are opposed to the Commission's plan (see EUROPE 11018), the CIUS (Committee of European Sugar Users), which represents the sugar-using enterprises in the agri-food sector, is pushing for the proposed measures in order to avoid a deficit of sugar on the market.
The countries of the EU “are making a big mistake by not introducing these market measures” for the growing year 2013/2014, Muriel Korter, the secretary general of the CIUS, told EUROPE. The Commission has proposed issuing calls for tender to allow additional imports of sugar and to free up so-called out-of-quota sugar on the market. The CIUS states that the stock at the end of the growing year is “limited” (2.2 million tonnes, according to the Commission's forecasts, even though the CIUS believes that this should not be allowed to fall below 2.4 million tonnes). This leads to a risk of speculation and problems of supply, the sugar users argue. “There is a structural deficit on the market up until the production quotas are removed. We do not have enough sugar on the European market. We are entirely dependent on imports. But it is by no means sure that imports will cover the remaining 20% the EU needs” in 2015, Korter explained. She recommends that this structural deficit on the market be avoided by bringing in possible measures (opening up imports at reduced levels of duty and reclassifying out-of-quota sugar on the market).
The CIUS explains that there are a number of different factors which could contribute to reducing the level of sugar stocks: - the CXL import quota (a quota of around 600,000 tonnes a year, for countries such as Brazil, attracting reduced duty of €98/tonne) reached just 50% of its capacity. This is because Brazilian sugar (Brazil holds 300,000 tonnes of these quotas) is still not on the market; - preferential imports under the Everything but Arms initiative have always been underestimated, according to the CIUS; - the consumption of sugar within the EU could rise further (needs should be regularly reviewed, the organisation argues). “There will be a shortfall of around 500,000 tonnes”, said Korter (200,000 tonnes corresponding to the difference between 2.2 and 2.4 million tonnes, plus 300,000 tonnes of deficit for CXL sugar). She recognises that sugar prices have fallen slightly in Europe, but they remain considerably higher than the global market.
The countries of the EU are divided over the measures recommended by the Commission. This is one of the reasons the vote has been delayed within the management committee (it was scheduled for 27 February). (LC)