The price collapse
For more than a year, world sugar prices have continued to drop. The constant erosion of prices is explained by the large stocks and the offer which exceeds world demand.
In the EU, the price of sugar has dropped drastically. The average price in the Community of €433/ton recorded in December 2014 was the lowest market value recorded in Europe since the CAP came into force in 2006.
The erosion of prices in the EU is mainly due to the large stocks caused by substantial imports, export limitations imposed by the WTO and this year’s record season (almost 20 million tons).
Although no longer economically advantageous as the market prices have not justified production and refinement costs, the majority of sugar operators have nevertheless tried to win as large a market share as possible. This is because from October 2017, Europe will be quota free and there will therefore be greater market liberalisation.