european sugar refineries association member states reception 25 th july 2012
DESCRIPTION
European Sugar Refineries Association Member States Reception 25 th July 2012. Agenda. Introduction Issues Myths Solutions. Sugar Refiners i n Europe. ESRA was formed in February 2011 With 26 refineries , it comprises the large majority of the refining capacity - PowerPoint PPT PresentationTRANSCRIPT
European Sugar Refineries Association
Member States Reception25th July 2012
Agenda
Introduction
Issues
Myths
Solutions
2
Sugar Refiners in Europe
Tate & Lyle Sugars
AzucareraTereos
Saint Louis Sucre
SFIR
Finsugar
Agrana Lemarco
SidulDAIRAR
LitexZaharni EADZaharen Kombinat Plovdiv
ESRA was formed in February 2011
With 26 refineries, it comprises the large majority of the refining capacity
Represents about 4500 employees with about 2400 customers
ESRA is the common voice for cane refiners with regulatory authorities in Europe
3
Why Europe Needs Cane Refiners
Europe’s cane refiners…
Bring choice to consumers
Contribute to competition
Aid food security by having a different raw material and processing model
Helps deliver EU Development policy by being a stable and long-term buyer of cane sugar
Provide an important link to the global markets
Local industries provide thousands of high quality manufacturing jobs
Two of the 26 cane sugar refineries in Europe
4
Current situation - Challenges
5
Refiners face major challenges to manage their
business
not because they aren't competitive
but because they don’t have fair access to raw
material at competitive prices
or cost efficient
Fair Access to Raw Material - Our Key Issue
EU Commission forecast preferential imports would double from 2006 levels to 3.5 million tonnes
EU refining capacity has been developed on Commission’s forecasts
Current sugar market based on this balance
There is structural sugar supply deficit in the EU market
This needs to be solved to ensure fair terms of competition
Otherwise it is will lead to the destruction of the majority of cane refineries in the EU
2009/10 2010/11 2011/12 2012/130.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Imports from EPA/EBA
EU 2006 Council Agreement
Actuals / Latest
Mill
ion
tonn
es
6
Lack of raw material - Consequences
7
Refiners not operating at economically viable levels
1
Impact on suppliers and
customers
4Distorts
competition
5
Over 4,500 jobs threatened
2
3
White sugar prices raised 50% in 18
months (Dec-May)
Unbalanced solutions – Evolution
Despite exceptional measures needed because insufficient raw sugar imports More out-of-quota sugar released than alternative raw cane imports allowed In 2011/12 the situation was even more unbalanced : 684 vs 370 thousand tonnes WSE Imports of whites effectively delocalising EU jobs outside 8
Beet Isoglucose Raw cane imports
White imports0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Exceptional measures - Evolution
2010-112011-12
Mill
tion
Tonn
es W
SE684
370
Issues Until 2015
European Commission should allow the 3.5 million tonnes of duty free cane sugar they forecast would arrive
If it cannot come from EPA and EBA countries then it should be allowed from other suppliers
The current mix of solutions is unfair Average fee of €53 for beets Auction costing €183 for cane
It will kill cane refineries who face Cost of running at 60% capacity Unfair cost of tax and new supply
9
Beet & isoglucose Raw sugar for refining0
20
40
60
80
100
120
140
160
180
200
Average Cost per tonne 2010/11 & 2011/12
Low Imports – Need for measures
1.8mt of EPA/EBA imports forecast in 11/12 may be too optimistic Only 1.38mt of licenses applications have been made until 13/07/2012 only 3 months left!! “Exceptional” measures needed AGAIN because of the structural shortage of imports
10
Imports Latest EU Forecasts 2006 Forecast0
500
1000
1500
2000
2500
3000
3500
EPA/EBA Imports - 2011/12
Thou
sand
Ton
nes
WSE
◄ 13 July
Myths – 4 million imported in 2010/11
In 2010-11 out of 4 million tonnes of imports, 2 million tonnes came as white, refined sugar or sugar within processed products
Refiners could only use about 2 million tonnes, much less than forecasted11
Total For refiners - total0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Total sugar Imports in 2010/2011
OthersBalkansImport tenderExceptional TRQProcessed ProductsCXLEPA/EBA
Mill
ion
tonn
es
Myths – Raws alternative markets
ISO data clearly shows that cane sugar exports from EPA/EBA countries to all markets have actually fallen since 2005.
Due to structural reasons EPA/EBA exports to the EU have simply not risen.12
2005 2006 2007 2008 2009 20102,300
2,400
2,500
2,600
2,700
2,800
2,900
0
100
200
300
400
500
600
ACP/LDC exports to ALL countries vs world prices
ACP/LDC worldwide export volumesWorld Sugar Prices
YearExported Tonnes '000
World price sugar $/t
Issues Post 2015
13
Beet sugar Isoglucose Cane refiners
Freedom to buy unlimited raw material at market prices
Freedom to sell unlimited end product
What do Refiners Want?
14
Access to raw materials
Fair terms of competition
Quotas maintained
Market share of 3.5 mt of raw sugar
for refiners
Quotas abolished
Parallel reduction of duties and limits
on raw imports
No favourable treatment
We count on you for…
15
Until 2015 at the Management Committee:
Ensure sufficient measures are taken early and
in a balanced way
Post 2015 At the Council:
Shape a new CMO that ensures a level playing
field to all sweetener producers in the EU
Thank you for your time and attention!
Member States Reception25th July 2012