The cane sugar-ethanol sector is expected to contract amidst failing competitiveness as many companies fail to make enough money to pay bills and better capitalized groups are not willing to invest, according to investment banks operating in Brazil’s agricultural sector, reports Reuters.
Brazil – Low sugar price and devalued Real expected to increase bankruptcy filings [Full subscriber]
With global sugar price well below the production cost and unlikely to change in the foreseeable future along with the weak Brazilian real, industry indebtedness is expected to worsen, triggering a new wave of debt renegotiation and bankruptcy filings, reports Valor Economico.
South Africa – Cane growers protest against cheap imports, demand increased tariffs [Full subscriber]
Some 2000 cane growers led by the South African Sugar Association (SASA) and the SA Farmers Development Association (SAFDA) on 26th June protested in Pretoria demanding that tariffs on sugar imports be increased in order to protect the local sugarcane industry from cheap imports, according to local press reports.
Brazil’s President caves into fuel protests which has also paralysed the sugar-ethanol sector [Registered]
Brazil’s President Michel Temer announced late on 27th May new measures to reduce operating costs for truckers in a bid to end a week-long protest that has severely hampered the flow of food, fuel and key exports including sugar.
Mauritius – Merger of the four remaining sugar factories proposed to save the sector [Full subscriber]
Consolidation of the four existing sugar factories into one large national company is considered likely to make the sugar sector viable according to local press reports. The proposal comes from Medine Sugar Estate in an ultimate attempt to save a sector on the verge of collapse.
No new sugar plants will be built in Vietnam between now and 2020 according to local press reports citing the government.
The Tanzanian government recently announced that it will stop issuing new permits for sugar imports effective June, to support local millers, reported The East African.
Sugar industry players are formulating new guidelines to end cane poaching between millers, according to local press reports.
Kazakhstan – Beet sugar sector fears decimation from dumping from Russia and Belarus [Full subscriber]
The Vice Premier – Minister of Agriculture of the Republic of Kazakhstan Umirzak Shukeyev recently raised concerns about the possible demise of the domestic beet sugar industry as exports from the neighbouring countries Russia and Belarus increase, according to local press reports.
Mitr Phol Sugar Corporation, the world’s fourth-largest sugar producer, will invest US$100 million for a 50% stake in the agribusiness group Olam’s wholly-owned Indonesian subsidiary Far East Agri.