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Agriculture: 30,000 tons of Brazilian sugar to reach Romania
The rising price of sugar in EU stimulates imports from the North-Eastern part of Brazil, in a system which allows a certain share of sugar from this area of Brazil to enter the EU market at low costs, Bloomberg informs.
Data supplied by the shipping company Williams Brazil shows that Trader Sucres et Denrees SA rented a ship to send 30,000 tons of sugar to Romania from the Brazilian port of Maceio. The Daiwan Wisdom ship is the first concrete proof last month about the conclusion of accords for imports of Brazilian sugar in EU.
Stefan Uhlenbrock, an analyst at the German firm F.O. Licht GmbH says that sugar prices in EU have gone up by over 10% since October last, in conditions in which sugar crops in EU will likely reach the lowest levels of the last 40 years. According to Bloomberg calculations, sugar prices in Western Europe have reached 550 euros, 43% higher than futures quotations in London.
EU prices grow from one day to another. The quota is now attractive for producers in North-Eastern Brazil and it is expected to be completed by the end of the present season, said Stefan Uhlenbrock.
EU can import 334,054 tons of sugar per year from that area in Brazil at low customs duties of 98 euros per ton. EC data show that in the last season EU did not import sugar from Brazil.
Licht estimates that the EU sugar production will go down in the 2015-2016 season ending in September, to 13.6 million tons, the lowest after 1971. In these conditions, the European committee of sugar substitutes, a group representing over 15,000 companies, declared last month that the EU Executive must take measures to increase deliveries and avoid shortages.
EU officials met last week representatives of the sugar industry to discuss possible solutions in case imports mights not be at prognosis level. The EU bloc might import a quantity 150,000 tons lower than estimated, when deliveries from countries with preferential access to EU market are at a lower level than the oner registered last year.