• The struggle to source raw materials is threatening the sugar refining sector in Europe

End of quotas

The EU sugar market will undergo significant changes in October 2017. The quota system will be abolished and there will no longer be production limits for sugar and fructose, nor will producers’ exports be limited. This means beet processors will have unlimited access to raw material. Isoglucose will likewise be freed from quotas, adding a further unrestricted supplier to the sweeteners industry.

Refiners, however, will continue to be constrained in their raw material supply, which remains restricted to the low quantities provided by preferential agreements: ACP, CXL and some Free Trade Agreements (FTAs). Therefore, import levels will continue to depend on the gap between world price and EU market price.

In a situation where beet production is no longer limited and there has been no loosening of import regulations, the future of EU refineries is uncertain.