European sugar companies have seen their profits fall due to increased supply and falling product prices. writes about this Bloomberg .
Suedzucker, Europe’s largest sugar producer, reported an 81% drop in operating profit for its sugar division in the first half of the year. Austrian manufacturer Agrana recorded a 49% decrease in operating profit. Associated British Foods Plc also warned of lower profits.
The cause of the financial distress was the increased supply of sugar in the market. EU sugar production is expected to increase by more than 6% in the 2024-25 season due to expanding planting areas and high sugar beet yields. In addition, the increase in imports from Ukraine also affected the market.
According to European Commission data, average sugar prices in the EU have fallen by approximately 8% this year. With long-term contracts, prices are even lower, forcing most manufacturers to sell products below cost.
“The current extremely unfavorable market situation will have a negative impact on the profit of the Agrana group in the 2024-25 financial year,” said company CEO Stefan Büttner.
doctor before this warned About the development of fatal diseases due to sweet soda.
Previous scientists I learned How does sugar disrupt metabolism?