Napier Brown Foods, the UK’s largest independent sugar merchant has today (Monday) issued a statement to investors welcoming the EU’s planned changes to the sugar regime. It expects some EU producers and refiners to close.
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The European Commission proposes to reduce EU sugar production over a four year period, commencing in July 2006. It is expected that EU prices will eventually be 39% lower than current pricing levels, which would bring them more into line with world market levels.
“As a result of the changes, the board expects that certain EU producers and refiners will cease to trade, while others have acknowledged that their profit margins will be reduced,” Napier Brown said. “Furthermore, these changes are expected to increase the amount of imported sugars from the developing world to compensate for the proposed reduction in EU sugar production.”
“Napier Brown welcomes these proposed changes and the Board believes they will strengthen its position in the sugar market, particularly as Napier Brown is not a sugar refiner and sources its sugars from a number of producers,” it said.
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