The majority shareholders of the Südzucker sugar group unequivocally declined to sell the two sugar factories it is planning to close down next year to France’s beet growers at a meeting on 15th May in Strasbourg.
The French sugar cooperative Cristal Union said on 18th April that it is to shut down two of its beet sugar factories amidst low global sugar price which has impacted its profitability.
The French government asked Suedzucker on 13th March to review its plans to close two beet sugar factories and a packaging plant in France, as the publicly listed German sugar maker seeks to cut costs of its operations amidst reduced profitability amidst global glut and low sugar prices.
As part of a wider restructuring plan, the sugar giant Suedzucker is to close two beet sugar factories in France and two in Germany, reported Reuters.
Public anger in France over increasing fuel prices, which gave rise to the anti-government “yellow vest” movement, has further boosted demand for crop-based ethanol fuel from motorists seeking cheaper deals, according to industry representatives, reported Reuter.
Following tests with a small group of farmers in 2017 and 2018, the French sugar co-operative Cristal Union is considering increasing the production of organic beet sugar, according to the press release on its website.
One of the top global sugar producer Tereos is seeking to cut its sugar beet production next year by 5%. The company asked its cooperative members on 20th September to reduce 2019/20 acreage, citing difficult market conditions, according to Reuters.
France – Tereos seeks to diversify further and looks to raising capital from non-co-operative members [Full subscriber]
The French sugar co-operative group Tereos, following a net loss in 2017/18, triggered by low world sugar prices, is considering opening up its capital as part of a diversification and internationalisation strategy, it said on 12th June according to local press reports.
France – Cristal Union scraps previous pricing mechanism for beet growers amidst market volatility [Full subscriber]
The sugar co-operative Cristal Union is scrapping minimum price for tonnage of beet for farmers as it expects sugar prices to fall further in 2018, reported Reuters.