Management from four Polish sugar holding companies have formed an informal cartel, effectively stopping production of 70% of the domestic market in a bid to drive up sugar prices, according to unconfirmed industry sources.
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It is believed that the company leaders met last week in Warsaw, at the invitation of deputy agriculture minister Feliks Klimczak. There, they allegedly agreed to put a hold on production until a minimum wholesale price of PlZZ2.10 per kg could be guaranteed.
The companies have been looking for a way to restore profitability since the collapse of the sugar price from its high last year of PlZ2.40 per kg.
