Luis Carazo JimenezDeputy Head of Unit – DG AGRI/C/5

Brussels, 28 February 2011

EFFAT – CEFS

EU Sugar Market

28 February 2011 EFFAT - CEFS - Brussels 2

PRODUCTION - Development of quotas - tonnes

Sugar Isoglucose Inulin TotalStart of reform* 17 554 453 586 736 320 717 18 461 906Additional 1 012 620 326 021 1 338 641Renounced 5 230 331 222 316 320 717 5 773 364After restructuring 13 336 742 690 441 0 14 027 183As % of start 76% 118% 0% 76%* including Bulgaria, Romania

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PRODUCTION - Quota renounced - tonnes

2006/07 2007/08 2008/09 2009/10 TotalSugar 1 148 896 676 103 3 273 226 132 106 5 230 331Isoglucose 0 32 664 60 569 129 084 222 316Inulin 320 717 0 0 0 320 717Total 1 469 613 708 767 3 333 795 261 190 5 773 364

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Beet sugar – rate of coverage

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Evolution of areas & yield

0

500

1000

1500

2000

2500

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011(forecast)

'000

ha

0,00

2,00

4,00

6,00

8,00

10,00

12,00

ton

/ h

a

area's yield

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EU Sugar Trade

-6

-4

-2

-

2

4

6

8

10

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09

Mil

lio

n T

on

ne

s

North Africa

North EastAfricaAsia

Balkans

CIS

Others (RoW)

Mercosur

ACP

Mercosur

Balkans

Asia

CIS

ACP

North Africa

North EastAfricaOthers (RoW)

Balance

EXPORTS

IMPORTS

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Sugar market prices

June 2010 :478 €/t

150

200

250

300

350

400

450

500

550

600

650

700

750

800

registered p rice reference price London N°5 $/t London N°5 EUR/t

632 €/t

542 €/t

404 €/t

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EU quota sugar (2010/2011)

Sugar consumption : 16.5 Million tonnes

Net export NAI products: 0.5 Million tonnes

Export quota sugar : 0.1 Million tonnes

Quota sugar production : 13.8 Million tonnes

Sugar Import need : 3.3 Million tonnes

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EU Sugar imports forecasts (2010/2011)

CXL – TRQ quota: 0.65 Million tonnes

Balkans: 0.35 Million tonnes

Forecast ACP/LDC: 1.50 Million tonnes

TOTAL preferential imports: 2.50 Million tonnes

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2008/09 – 2010/11 EU sugar balancesAGRI C5 BALANCE SHEET January 2011

FINAL 2008/09 - 2009/2010ESTIMATION 2010/2011

SUGAR AND ISOGLUCOSE

x 1000 tonnes 2008 / 09 (oct - sept) 2009 / 10 (oct-sept) 2010 /11 (oct-sept)EU 27 EU 27 EU 27

quota out of quota quota out of quota quota out of quota

Beginning stocks 2.189 0 1.843 0 1.177 01 1 private 1.870 1.808 1.1771 2 intervention 319 35 0

Production 13.906 2.909 13.956 4.642 13.774 3.184

Imports 3.432 179 2.996 8 3.000 203 1 - as such 2.885 2.499 2.5003 2 - in processed products 547 497 500

TOTAL AVAILABLE 19.526 3.088 18.795 4.650 17.952 3.204 4 = 1 + 2 + 3

Consumption 16.500 1.947 16.500 1.974 16.500 1.950710 indust. 646 indust. 650 indust.

1.237 bioeth. 1.328 bioeth. 1.300 bioeth.

Exports* 1.183 728 1.118 2.115 1.100 7006 1 - as such 254 100 100

6 2 in processed products 928 1.018 1.000

Ending stocks 1.843 413 carry forward 1.177 561 carry forward 352 5547 1- private 1.808 1.177 3527 2 - intervention 35 0 0

TOTAL OUTLETS 19.526 3.088 18.795 4.650 17.952 3.2048 = 5 + 6 + 7 = 4

AVAILABILITIES

OUTLETS

FinalFinal Estimation

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2010/11 market measures

• Suspension of 98€/t import duty on CXL imports

• Release of 0.5 mio t of out-of-quota sugar on the EU (quota) market

• Facilitating imports by the opening of an exceptional import TRQ at zero duty

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2011/12 market measures

• No preventive withdrawal

• Export limit for out-of-quota sugar set at 650 000 tonnes

• 0.4 mio t zero duty import TRQ for industrial sugar

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Future Challenges

•DDA Round•Enlargement•FTA negotiations•2013 CAP reform in particular for

sugar production quotas