Instability in the European sugar market is set to continue in the near future though further deregulation anticipated for 2015 could help bakery and confectionery manufacturers, according to a report from financial services provider Rabobank Group.
EU sugar supplies are at their most critical levels since the 2005 sugar reform and are causing ‘extreme volatility, instability and disruption’ to the European food and drink industry.
The food and drink sugar users lobby has warned the European Commission that any further delays in intervention to remedy the sugar deficit in the market could result in even greater supply repercussions this autumn.
Danisco says that the finalisation of the new EU sugar regime and
the recently announced transitional measures will not affect the
firm's planned efficiency drive.