Brazil can benefit from sugar supply crisis in Europe

Published 2022년 12월 8일

Tridge summary

Europe is experiencing a sugar shortage due to reduced local harvests caused by heat wave, leading to higher prices for manufacturers. The European Sugar Consumers Association is advocating for a temporary suspension of import tariffs to encourage shipments from countries like Africa and the Caribbean, and to increase shipments from Brazil and India. The EU estimates a 7% drop in production for the current crop year due to adverse weather conditions and decreased planting. The situation is expected to persist, with local producers facing foreign competition and potential drops in local prices, which could harm their income and the sustainability of future production.

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Original content

Europe is facing a sugar shortage and food industries are paying dearly to secure supplies after a heat wave crippled local harvests this year. Manufacturers of sweets, cakes and soft drinks are paying much more than normal to obtain sugar in the short term, and the risk of some going out of business has increased, according to the European Sugar Consumers Association (Cius), the association that represents buyers sugar Europeans. For consumers, it is a threat of further inflationary pressure. The association wants the European Union to temporarily suspend import tariffs to encourage shipments of refined sugar. To alleviate the crisis, Europe could buy from countries in Africa and the Caribbean, whose shipments have fallen in recent years, but which may now be more attractive at current prices, according to Josh Gartland, deputy director general of the association of sugar refineries. from Europe, CEFS. Another option would be to increase shipments from the main exporting ...

Source: Novacana