Big Sugar’s Assault on the Everglades

Source: https://www.insidesources.com


Some Americans are aware that the federal sugar program makes their food cost more. But few know this same program is causing environmental wreckage in Florida that their tax dollars will have to pay for.

The sugar program, known to its many critics as the “sugar racket,” is a tangle of price supports, which increase the cost of sugar in the U.S., and tariffs and quotas on imported sugar, which keeps cheaper sugar from reaching our market.

“There’s probably no better example in U.S. history of a case of both legal plunder and crony capitalism that has been tolerated for so many years, and that has picked more money from the pockets of Americans,” than the sugar program, says American Enterprise Institute economist Mark J. Perry, who has shown that “American consumers and domestic sugar-using industries have been forced to pay twice the world price of sugar for many generations.”

But it’s a great deal for the three Florida companies that produce nearly half of the country’s sugar supply: U.S. Sugar, the Sugar Cane Growers Cooperative of Florida, and the Fanjul Corp., which has helped fund Sen. Marco Rubio’s political career, obliging him to support government subsidies he should philosophically oppose.

Beyond the economic harm done by the sugar program is the environmental damage to Everglades National Park, a 1.5 million acre wetlands preserve located near Florida’s southern edge. According to the National Park Service, the Everglades are a World Heritage Site, a Biosphere Reserve, and a Wetland of International Significance. It is also the “largest subtropical wilderness in the United States,” the “predominant water recharge area for all of South Florida,” and home, as well, to almost 750 species of mammals, birds, reptiles and fish. In short, it’s a natural treasure.

As it turns out, federal policy has provided Big Sugar with a strong financial incentive to foul this wilderness.

“Federal farm policies damage the natural environment in numerous ways,” Cato Institute scholar Chris Edwards wrote last fall in “Downsizing the Federal Government.”

“Subsidies are also thought to induce the excessive use of fertilizers and pesticides, which can cause water contamination problems. Sugar cane production has expanded in Florida because of the federal sugar program…and the phosphorous in fertilizers used by growers causes damage to the Everglades.”

An effort to protect this sensitive region was initiated in 2000 through the Water Resource Development Act, which authorized the Comprehensive Everglades Restoration Plan. Part of the restoration included construction of a reservoir that would hold Lake Okeechobee runoff.  The objective was to stop the flow of those harmful agricultural nutrients into the Everglades, Florida’s rivers and eventually its beaches.

But critics say that the sugar industry has been a less-than-cooperative partner in the restoration effort.

“Since the 1990s,” The New Tropic reported last summer, “Big Sugar has been able to fend off state water clean-up requirements and routinely leave us, the taxpayers, to pick up the bill for Everglades restoration efforts.”

Big Sugar is certainly big, but its lobbying influence exceeds its weight class, as its successful obstruction of the Everglades plan shows.

Maybe this is because the “OPEC of sugar” funds its strong-arm lobbying efforts with the hefty profits it generates with the assistance of government policy. And with the price of sugar in the U.S. often twice as high as the global price, those profits are abundant – causing American consumers to pay an extra $1.4 billion for sugar in fiscal 2013, according to research from Heritage Foundation policy analyst Bryan Riley.

It would be well-deserved justice if Big Sugar was made to pay a substantial portion of the Everglades’ restoration costs. Why not? The reservoir alone, which moved a small step closer to reality this spring when state lawmakers approved a measure to secure at least some of the needed land, will cost an estimated $1.5 billion to $2.4 billion.

Not often do free-market advocates and environmental activists become allies. But they can find common ground on this issue. A strong coalition advancing from both sides would be a potent political force for ending the sugar racket.

Traders raise sugar, garlic prices to record highs

Source: http://www.newagebd.net


The prices of sugar and garlic have surged to record highs at Tk 82 a kilogram and Tk 400 a kg respectively in the city markets as traders have increased the prices of daily essentials excessively in recent weeks.

The prices of sugar and garlic have surged to record highs at Tk 82 a kilogram and Tk 400 a kg respectively in the city markets as traders have increased the prices of daily essentials excessively in recent weeks.

Belying the commerce minister Tofail Ahmed’s repeated assurances that the commodity prices would remain stable during Ramadan, the prices of sugar and garlic rose twice in the city markets after the start of the fasting month for the Muslims on Sunday.

On May 23, the commerce minister had said that there was no reason to increase the prices of essentials as the stock of Ramadan commodities including sugar, gram, pulse, edible oil, onion and garlic remained much higher than the demand for the items.

‘I want to assure and to give you the guarantee that the prices of essentials will not increase in the month of Ramadan,’ Tofail had said.

However, the price of sugar increased by Tk 5 a kg on Monday after a Tk 2 rise on Sunday, the first day of Ramadan. Sugar was selling at Tk 80-82 a kg in the city market on Tuesday.

The price of sugar rose by Tk 7 a kg in last one week while the price of the item surged by Tk 17-18 a kg in last one month.

Retailers said that delayed delivery by the sugar refinery companies created a supply shortage of the product at the market.

Some wholesalers alleged that the mill authorities were issuing two types of supply orders — current SO and normal SO — to the traders.

Those who are buying current SOs at high prices are receiving delivery of sugar within a short time while the delivery to the traders who are buying normal SOs are taking more than one month, they said.

A mobile court run by the Dhaka North City Corporation on Tuesday fined Ibrahim Store, a wholesale shop of sugar at Karwan Bazar, Tk 2 lakh for charging extra price for sugar.

During the drive of the mobile court, Ibrahim Store could not provide any valid money receipt for buying sugar from factory.

The mobile court also fined 10 other shopkeepers at the Karwan Bazar kitchen market for not keeping price list at their shops.
The price of imported garlic increased by Tk 50-80 a kg in last two days and the price of the item hit a record high at TK 370-400 a kg on Tuesday.

On Sunday, the price of imported garlic had increased by Tk 70 a kg.

The price of imported garlic increased by Tk 140-150 a kg in last one week.

On Tuesday, the price of onion increased by Tk 5 a kg and its local variety was selling at Tk 30-38 a kg in the city markets.

The prices of other daily essentials, including rice, vegetables, gram and pulse became costlier in recent weeks.

Need to be competitive

Source: https://www.philstar.com


President Duterte has just certified as urgent the tax reform bill in order to ensure the timely and full passage of the tax reform package before Congress ends its session on June 2.

The bill provides for, among others, a higher excise tax on sugar-sweetened beverages. As proposed, sugar-sweetened drinks will be slapped a P10 a liter excise tax in the first year of implementation. In the succeeding years, the tax rates will be increased by four percent annually.

According to the DOF, an additional P47 billion could be generated from taxes on sugar-sweetened beverages, whether in liquid or powdered form.

Finance Secretary Carlos Dominguez earlier said this would serve not only as a revenue but also as a health measure similar to the implementation of the “sin” tax reform aimed at safeguarding public health.

But according to Steven Cua, president of the Philippine Amalgamated Supermarkets Association (PAGASA), the new tax would have a grave impact on the sugared beverage industry and its manufacturers, with the cost being passed on to the poor consumers as higher retail prices.

And because the price of sugar bought in the Philippines is still high compared to other imported sugar and sugar substitutes, manufacturers of sugar-sweetened beverages may be left with no choice but to look for cheaper imported sweeteners.

Beginning 2015, the Philippine tariff on raw and refined sugar imported originating from ASEAN member countries was reduced to five percent. It is, however, in the so-called sensitive list just like in Thailand, unlike other goods where intra-ASEAN tariff rate is now down to zero.

The Philippine sugar industry insists that the protection is needed given the inherent disadvantages that the local sector faces, such as the agrarian reform program that has caused banks to refuse to accept agricultural lands as collateral for loans, the subsidies which other foreign government give to their sugar industry, among others.

Observers say the excise tax is meant to force sugar manufacturers to shape up, to modernize, to produce other sugar-based products like ethanol, and to reduce costs and prices in order to be able to compete with sugar substitutes like high fructose corn syrup (HFCS) and other sugars produced in the region.

The other message is that beverage manufacturers should start using alternative sweeteners in order for their products to remain affordable.

The problem is, sugar producers want higher tariffs on imported HFCS and other sweetener, blaming imports by beverage companies and food producers for the continued drop in sugar prices in the country.

At present, HFCS coming from China is tariff-free while those coming from South Korea are slapped a tariff rate ranging from one percent up to seven percent.

From 50,000 metric tons in 2010, HFCS imports are said to have risen to 370,000 tons last year.

Sugar industry leaders have also opposed the planned excise tax on sugar-sweetened beverages, with some proposing at least a five to six-year exemption from this or at leased a staggered implementation.

For its part, the Export Development Council (EDC) of the Philippines said that imposing an excise tax on a single product alone is regressive and unfair, especially considering that the beverage industry is one of the key export sectors cited in the Philippine Export Development Plan (PEDP) 2015-2017.

The EDC noted that the bill being rushed by Congress would hamper the growth of the beverage industry, the local sugar industry, and fruit farming as well, due to the expected decline in demand for fruit juices and sugar.

Agriculture Secretary Manny Piñol has warned that the sugar industry needs to modernize and produce sugar at competitive prices with the ASEAN market integration, otherwise “we will have problems.”

Too much gov’t is bad

Is the Philippine Competition Commission (PCC) superior to the Department of Information and Communications Technology (DICT) and the National Telecommunications Commission (NTC)?

By law it isn’t. But by the way it is acting lately, it seems to want to assert its superiority over the two other agencies in charge of the telecommunications industry.

In fact, the PCC has questioned before the Supreme Court the ruling of the Court of Appeals’ (CA) blocking the commission’s review of the PLDT-Globe acquisition of San Miguel Corp.’s telecom assets. No less than the NTC has said that the deal is good for the industry.

PCC chair Arsenio Balisacan has said they would not back down or be intimidated by companies who have grown accustomed to unregulated business practices that hamper competition that ultimately hurt the consumers.

Is the PCC, in effect, saying NTC and DICT have not been doing their jobs? After all, only the NTC and DICT are by law the mandated regulators and policy-setting agencies for the telco and ICT sectors.

PCC, let’s face it, does not have the administrative and technical expertise to decide on matters such as what is good for the telecommunications industry. It insists that the sale of the SMC telco assets, which include the much-sought-after 700 megahertz radio frequencies, will kill competition in the telco sector. But would it rather than these frequencies remain unused when they could be put to better use by PLDT and Globe?

In fact, after the NTC allowed the co-use by PLDT and Globe of the frequencies, the two companies immediately announced plans to invest billions of pesos in improving their services in compliance with President Duterte’s directive for telcos to shape up.

The NTC approved in May 2016, the co-use by PLDT and Globe of the frequencies held by SMC, with NTC deputy commissioner Edgardo Cabarrios citing the deal and the co-use of frequencies as a “clear benefit to the public.”

Akamai, an international content delivery network services provider, has cited the impact of the utilization of new frequencies to which PLDT Inc. and Globe Telecom Inc. gained access after their purchase of San Miguel Corp.’s telecom business.

Following its use of the acquired frequencies, Smart Communications reported improvements in terms of mobile internet speed averaging at 13.9 megabits per second (mbps) – better than Australia and Japan which recorded 12.8 mbps and 11.6 mbps respectively.

Globe, meantime, said “it has achieved its target Long-Term Evolution (LTE) network rollout using the 700MHz in 500 cell sites within 2016, mostly deployed in Metro Manila and other highly populated areas.”

Observers cannot understand the PCC’s refusal to recognize the deal, which under its implementing rules prevailing at the time of the sale, was exempt from PCC review. There are those who even suspect the PCC wants the frequencies to go to someone else.

Others meanwhile complain why the PCC has been over-eager in its bid to stop the PLDT-Globe-SMC deal, while being lackluster in its actions with regard to complaints of anti-competitive behavior against cement manufacturers.

For comments, e-mail at philstarhiddenagenda@yahoo.com

Sugar output breaches target price of sugar

from manila times

The sugarcane sector performed better than expected this crop year as production exceeded the target despite the lingering effects of El Niño, the Sugar Regulatory Administration said.

As of May 28, sugar production totaled 2.33 million metric tons (MT), from 2.21 million MT a year earlier, the industry regulator said in a report. The output has surpassed the 2.25 million MT target this crop year.

more here – http://www.manilatimes.net/sugar-outp…

Bitter truth about sugar

Source: https://www.independent.co.ug


Uganda and Kenya are learning a bitter truth about ordinary added sugar used in homes, industries, and service facilities. Just six months ago in September 2016, the two countries were fighting a trade war over sugar. Uganda wanted to export sugar to Kenya because it claimed it had a surplus. Kenya blocked the export claiming Uganda was repacking third party to exploit regional trading agreements.

Now the two countries face a grim reality. One has run out of sugar, the other has sugar but is hurting from hiked retail prices.

On May 07 Kenya announced it was to import 100, 000 tonnes of sugar to counter biting shortage. At the time, a kilo of sugar was retailing at KShs350 (Approx. UShs13, 000). It was cheaper on the Uganda side (retailing at Shs7000 at Busia border) and Kenyans were smuggling it across. Before that it had been at Shs5000 on the Ugandan side and Kshs200 (Approx.Shs7000) across.

A similar scene was playing out on the Kenya-Tanzania border. Sugar was being bought in Tanzania for about Kshs100 and sold on the Kenyan side at KShs200. Tanzania produces 520 metric tons of sugar annually and has demand of 300 metric tons.

While the Tanzanian government, like Kenya, reacted by ordering the country’s sugar board to import sugar to cover the deficit, the minister of Trade in Uganda reacted by attempting to fix the price at Shs5000. Fixing the sugar price is anachronistic in the context of Uganda’s liberalised trading regime and it is not clear what law the minister would use to punish traders who offend her directive.

The Minister’s intervention could have been prompted by a perception that Uganda was not facing a sugar shortage but rather a speculative spike in the price of sugar driven by deliberately imposed local supply chain hurdles and external demand from the region.

This presents two immediate lessons for Uganda. One, that Uganda needs a long-term sugar strategy, and two, that it should be pushing for an integrated East African sugar strategy.

A regional strategy is critical because indications are that the current sugar crisis in Uganda is foreign induced; resulting from official and non-official export of the commodity to neighboring countries. While protectionist regulations and subsidy regimes are not uncommon in cross-border dealings in sugar, which is a very political commodity, EAC member states need a regional outlook.

In this context, Uganda’s Ministry of Trade claim that “Uganda has a sugar surplus” is fallacious. The reality is that Ugandans are consuming less sugar than they should – because they are poor and cannot afford it. They also cannot meet regional demand. The sugar situation in Uganda is likely to get direr as the population increases, becomes richer, and more added sugar consuming industries and services are opened locally and regionally.

Currently, each Ugandan on average consumes about 8kgs of sugar per year or 22 milligrams per day. That is too little because one teaspoon of sugar is 4000 milligrams and the recommended daily intake of added sugar is six teaspoons for women and nine for men.

Make no mistake; some Ugandans are obese from over-consumption of sugar. But the figures cited here simplistically take total sugar available and divide by total population. It follows that as Ugandans become richer, they will take more sugared tea, coffee, juice, bread, biscuits, cakes, and more and the so-called surplus will disappear.

Sugar prices rise in Ctg markets

Source: http://www.banginews.com


Sugar prices have gone up in most of the kitchen markets in the port city because of a supply crunch in the Khatunganj wholesale market.

Price of sugar increased by Tk 3 to Tk 5 a kg to Tk 66-68 a kg in the retail markets in the last three days, which was Tk 62-63 on Wednesday. Retailers have blamed a shortage of supply from the dealers in the Khatunganj wholesale hub for the increase in the price of the sweetener.

Retailers alleged that a sudden supply crunch was created in Khatunganj just ahead of Ramadan as dealers of refined sugar sold only a small quantity of the item. Millers sold the sweetener at Tk 2,150 a maund (37.32kg) to some 35 dealers based in Khatunganj. The dealers sold the item at Tk 2,180 a maund to wholesalers and retailers.

A significant number of retailers from different kitchen markets showed up at the dealers’ shops last week to purchase sugar in bulk. But they found that the dealers have cut down the amount to be sold.

Najmul Haque, a retailer at Karnaphuli CDA Market, who usually purchases 15 to 20 sacks of sugar from dealers, said the dealers have suddenly announced that they would sell the item only to those who could show their trade licence.

Retailers, who stood in the long queue, could collect only 5 to 10 sacks, said Haque, adding that seeing such a long line on Saturday he bought sugar from wholesalers at Tk 2,350 per maund. “Now we are compelled to sell it at higher prices since the wholesale rate was Tk 63.45 a kg,” he said.

Contacted, Syed Sagir Ahmed, general secretary of the Khatunganj Trade and Industries Association and a dealer of S Alam’s refined sugar, said the price of sugar in Dhaka markets is much higher than that of Chittagong. The wholesale price in Dhaka is Tk 2,400 a maund due to an inadequate supply by Dhaka-based millers.

Ahmed suspected that some traders are selling sugar to Dhaka markets after purchasing from Chittagong to make some quick bucks, prompting the dealers to sell only small quantity of the item. He, however, said, in the last two days they appointed 40 to 50 more dealers in the kitchen markets and at some points in the city to boost the supply.

Ahmed said the crisis would go in a day or two and the price would also come down. Emon Traders, one of the two dealers based in Karnaphuli CDA Market, bought 16 tonnes of sugar from dealers in Khatunganj on Saturday.

The firm is selling the item at Tk 2,180 a maund to retailers, according to its manager. The demand for sugar normally goes up during Ramadan.

Commodity prices become volatile on 1st day of Ramadan

Source: http://www.newagebd.net


A file photo shows a vendor selling aubergine to a customer at a city market in Dhaka. The prices of sugar, garlic, aubergine, green chilli, coriander leaves and cucumber increased excessively in the city’s kitchen markets on Sunday, the first day of Ramadan, the fasting month for the Muslims.

The prices of sugar, garlic, aubergine, green chilli, coriander leaves and cucumber increased excessively in the city’s kitchen markets on Sunday, the first day of Ramadan, the fasting month for the Muslims.
Traders started to increase the price of sugar from the last week of March this year and the price of the item witnessed its latest increase on the first day of Ramadan.

Sugar was retailing at Tk 75-77 a kilogram on Sunday in the city markets, up by Tk 3 a kg from Saturday’s price.

Despite the government’s assurance of keeping the commodity prices stable, the price of imported garlic increased by Tk 70 a kg within a day and the price of the item hit a record high at Tk 320 a kg on the first day of Ramadan.

The prices of aubergine, green chilli, coriander leaves and cucumber almost doubled in the city’s kitchen markets on the first day of Ramadan.

The price of aubergine increased by Tk 20-40 a kg and the item was retailing at Tk 60-100 a kg depending on its quality.

The price of green chilli increased by Tk 40 a kg and the item was selling at Tk 80-100 a kg in the city markets on Sunday.

Coriander leaves price increased by Tk 80 a kg and the spice was retailing at Tk 200-220 a kg on the day.

Cucumber price increased by Tk 10-20 a kg and the item was retailing at Tk 40-60 a kg in the city markets.

Besides, traders on Sunday were not following the beef price set by the Dhaka South City Corporation and were selling the item at Tk 500-530 a kg in the city.

The DSCC has recently set the price of beef at Tk 475 a kg for the month of Ramadan, which is Tk 55 higher than the last year’s price.

Despite the unexpected hikes in the commodity prices, the government monitoring was seen absent at the markets in the city on the first day of Ramadan.

Commerce minister Tofail Ahmed on May 23 gave guarantee that the commodity prices would not rise during Ramadan.

He said that there was no reason to increase the prices of essentials as the stock of Ramadan commodities including sugar, gram, pulse, edible oil, onion and garlic remained much higher than the demand for the items.
‘I want to assure and to give you the guarantee that the prices of essentials will not increase in the month of Ramadan,’ the commerce minister had said.

Trade Organization Warns The Market To Curb Its Enthusiasm

We are all consumers of sugar, but many of us do not think about the price on a daily basis or in most cases, at all. Sugar is a condiment in restaurants, and they offer it to customers free of charge.

We consume sugar, which is an ingredient in many if not most of the foods we eat each day. For those of us who enjoy an occasional or constant flow of sweet treats, sugar brings joy to our palates and lives.

more here – https://seekingalpha.com/article/4081…

Sugar prices rise in Ctg markets

Source: https://www.thedailystar.net


Sugar prices have gone up in most of the kitchen markets in the port city because of a supply crunch in the Khatunganj wholesale market.

Price of sugar increased by Tk 3 to Tk 5 a kg to Tk 66-68 a kg in the retail markets in the last three days, which was Tk 62-63 on Wednesday. Retailers have blamed a shortage of supply from the dealers in the Khatunganj wholesale hub for the increase in the price of the sweetener.

Retailers alleged that a sudden supply crunch was created in Khatunganj just ahead of Ramadan as dealers of refined sugar sold only a small quantity of the item. Millers sold the sweetener at Tk 2,150 a maund (37.32kg) to some 35 dealers based in Khatunganj. The dealers sold the item at Tk 2,180 a maund to wholesalers and retailers.

A significant number of retailers from different kitchen markets showed up at the dealers’ shops last week to purchase sugar in bulk. But they found that the dealers have cut down the amount to be sold.

Najmul Haque, a retailer at Karnaphuli CDA Market, who usually purchases 15 to 20 sacks of sugar from dealers, said the dealers have suddenly announced that they would sell the item only to those who could show their trade licence.

Retailers, who stood in the long queue, could collect only 5 to 10 sacks, said Haque, adding that seeing such a long line on Saturday he bought sugar from wholesalers at Tk 2,350 per maund. “Now we are compelled to sell it at higher prices since the wholesale rate was Tk 63.45 a kg,” he said.

Contacted, Syed Sagir Ahmed, general secretary of the Khatunganj Trade and Industries Association and a dealer of S Alam’s refined sugar, said the price of sugar in Dhaka markets is much higher than that of Chittagong. The wholesale price in Dhaka is Tk 2,400 a maund due to an inadequate supply by Dhaka-based millers.

Ahmed suspected that some traders are selling sugar to Dhaka markets after purchasing from Chittagong to make some quick bucks, prompting the dealers to sell only small quantity of the item. He, however, said, in the last two days they appointed 40 to 50 more dealers in the kitchen markets and at some points in the city to boost the supply.

Ahmed said the crisis would go in a day or two and the price would also come down. Emon Traders, one of the two dealers based in Karnaphuli CDA Market, bought 16 tonnes of sugar from dealers in Khatunganj on Saturday.

The firm is selling the item at Tk 2,180 a maund to retailers, according to its manager. The demand for sugar normally goes up during Ramadan.

SUGAR DEREGULATION Bittersweet Outlook for Südzucker

Source: https://www.handelsblatt.com


September 30, 2017 is a red letter day for European sugar producers because it’s when quota rules for the sugar market in the European Union will come to an end. Export restrictions and minimum prices will be eliminated, and the supply will no longer be artificially restricted. In short, the market will behave more freely.

This marks a turning point for an industry that has been heavily regulated until now. “The elimination of quotas creates a completely new situation for sugar producers,” said analyst Oliver Schwarz of Warburg Research. “This is certainly a first. There are hardly any precedents.” The industry has been preparing for this date for years, and yet it’s still about to enter unknown and risky territory. Sugar production without quotas presents the European Union sugar sector with “substantial challenges,” warned the German Ministry of Food, Agriculture and Consumer Protection.

There’s a fear that the European market will collapse and the price will plummet. But that is completely exaggerated. Marc Gabriel, Bankhaus Lampe

Germany’s largest producer, Südzucker, will be among the companies affected. Like many of its competitors, the group plans to expand production significantly in the future. This would increase the sugar supply and put prices under pressure. What may be welcome news to consumers creates difficulties for the company. “In the short term, this leads to increased competition and pressure on margins,” said Mr. Schwarz. This concern was also recently reflected in Südzucker’s share price. After an interim high in February, the shares have lost about a quarter of their value. In 2016, they were still among the top performers on the MDax, with an increase of almost 24 percent.

However, other analysts are less concerned. “There’s a fear that the European market will collapse and the price will plummet,” said analyst Marc Gabriel of Bankhaus Lampe. “But that is completely exaggerated.” He said producers would benefit from the removal of minimum prices for beets, from which sugar is produced, thereby reducing their costs.

In fact, some analysts believe that Südzucker will even benefit from the new regulations. The company is in a good position to profit from the deregulation of the sugar market, writes Commerzbank analyst Michael Schäfer. This is why he, like Mr. Gabriel and most other analysts, still advises investors to buy the share. And even critical voices like Oliver Schwarz, who has a sell recommendation on the share, are not ruling out the possibility that the new situation will create an opportunity, at least in the long term. That’s because increased competition may lead to consolidation in the industry. “Südzucker can benefit from this in the long term if competitors are eliminated,” he said.

Betting on that alone would be risky, however, which is why Südzucker is already pursuing other avenues of growth. Chief Executive Wolfgang Heer has mentioned the possibility of acquisitions in Brazil, for example. The company also aims to increase exports as a percentage of sales, currently below 10 percent, after the EU sugar market directive is eliminated. Südzucker sees Asia, in particular, as potential target for exports.

The consensus estimate among analysts is €22 per share, which still translates into a 17-percent return for investors within 12 months.

Südzucker itself has provided positive headlines recently. In the past fiscal year, the company increased its operating profit by 76 percent to €426 million ($478 million), thereby exceeding its last two profit targets. According to the company, the sugar segment was the primary source of profit. Despite the elimination of the EU regulations, it expects profits to increase to €500 million in the current fiscal year.

Nevertheless, analyst John Ennis of US investment bank Goldman Sachs has lowered his profit expectation. The company itself has pointed out the uncertainty in the sugar business, Mr. Ennis wrote in a study, which underpins his negative assessment of the share.

Nevertheless, there is still some room for the stock to rise. The consensus estimate among analysts is €22 per share, which still translates into a 17-percent return for investors within 12 months. Optimists, such as Commerzbank and DZ Bank, have even issued a price target of €27. Buying the stock may be worthwhile for investors, provided Südzucker knows how to use the changes in the regulatory framework to its advantage.