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The Bitter Sugar Pill US and EU Give Brazil

By some measures, these would seem like sweet times for the sugar industry. The world market for sugar is expanding. So is production.

Developing countries currently produce more than two-thirds of all sugar. And they are expected to be responsible for almost all production growth through two thousand ten. This is shown in research by the United Nations Food and Agriculture Organization.

Yet the value of sugar exports has decreased. In 1980, it was almost US$ 10,000 million. By 2201, the value of sugar exports fell to six thousand million dollars.

The Food and Agriculture Organization says government intervention drives down world sugar prices.

It says policies in the United States and the European Union are believed to have the most effect in limiting chances for growth. It says prices are kept high in their own markets, while prices on the world market are depressed.

In July of last year, Brazil, Australia and Thailand took action in the World Trade Organization against the European Union.

The three nations said European Union countries were giving more aid to their sugar producers than they had agreed to under W.T.O. rules. They said this aid was unfair and kept world prices down.

Brazil is the biggest producer of sugar from sugar cane. As much as seventy percent of sugar is made from this plant. France is the biggest producer of sugar from sugar beets.

Brazil, Australia and Thailand argued that the European Union guaranteed its sugar producers very high prices within its market. As a result, they said the producers were able to export surplus sugar at prices below their cost of production.

Also, the three nations said the European Union was giving more direct subsidies to its sugar producers than permitted. These payments are based on the amount of sugar imported into the union under special trade agreements with some countries. These countries include India, but they are mainly in Africa, the Caribbean and the Pacific.

Last month, the W.T.O. ruled the European subsidies illegal. The European Union immediately said it would appeal. But Agricultural Commissioner Franz Fischler says the E.U. needs reforms to make its sugar industry “more competitive and trade-friendly.”



  • Show Comments (6)

  • Guest

    Sugar required
    Dear Sirs:
    We would like to import sugar to the middle east in qtty of 1,000,000MT, we represent a big wholesaler in the region but we find in internet only trading companies.
    Can you help us contact the producers directly to provide with this qtty?

    Thank you very much in advance.

    Manager Assistant
    our email: teqlabin@yahoo.com

  • Guest

    Syscon FZE
    Dear sirs!
    The firm ” Syscon FZE ” asks you to inform cost of sugar in view of delivery CIP “Iran” and CIP “Poti” in quantity of 50 000 tons. Delivery of sugar should be carried out by parties on 12 500 within a year, after the conclusion of the contract. Us the company which sugar, company the bearing responsibility for quality of sugar interests will deliver at transportation, the insurance company insuring a cargo. And as presence the certificate of quality of sugar, the certificate of an origin is necessary
    Yours faithfully ÀŒÀ³À°À²À³À§À À¥À¢ À”À À§À¨À« À€À«À¨ À®ãÀ«À» Contact bodies: +99366321502 (À¬À®á) +99366310865 (À¬À®á) +99312455172 (fax) E_mail: SYSCONFZE@MAIL.RU

  • Guest

    Dear Sir(s),
    Ahoda Company deals with the supply of sugar in the entire Libyan society. We are interested in importing white sugar to Libya.
    We wish to enquire the various prices of refined white sugar from your country, Brazil. How much do you sell the sugar? Do you sell it in netric tons, bags, or kilograms?
    We would be grateful is you can keep us informed on the price.
    Your immediate respond will e of great interest to us. We wait patiently on your reply.
    Best Regards
    Ahmed Muftah
    E-mail: a_m_s_63@yahoo.com

  • Guest

    Anita, Manager Assistant
    Dear Sir,
    Sahand Food Ind. is a manufacturer producing foodstuff like cakes, chocolate and wafer. we are interested in importing Brazilian Refined sugar. Searching in internet I only found the trading companies of BRAZIL selling sugar. I want to talk directly to the producers. Can you help me in introducing me the manufacturers of sugar in Brazil.

    Looking forward to hearing from you soon.

    Best regards,
    Manager Assistant
    Email: sahand_grp@yahoo.co.uk

  • Guest

    Sugar Required
    Dear Sir,
    We are the leading trading house in Middle East and other five Asian and European countries. Right now Pakistan Govt. has Allowed Sugar import for country need and we are the sugar importers in the Pakistan. We required Refined and Raw Sugar Minimum quantity 12,500 metric tons each. Kindly provide us Best CNF Karachi Port, Pakistan Prices along with Specification and payment terms and conditions. I hope to hear you soon. We have very limited time for opening Lc. Any supplier who approaches us kindly provides us their latest sugar BL before starting discussion.

    With Best Regards,

    Email :- smartshamoon@yahoo.com

  • Guest

    sugar business
    we wold like to import 12500 M ton of Sparkling White sugar to libya market.
    this is our email add : liptsgroup@yahoo.com
    so please help us to find suplayer
    with best regards

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