The evolving future of the sugar industry. José Orive, Executive Director International Sugar Organization

Similar documents
IANSA Seminar Presentation

W or ld Cocoa and CBE mar kets. Presentation to Global Shea 2013 By Richard Truscott, LMC International, Oxford, UK

World Cocoa and CBE markets. Presentation to Global Shea 2014 By Owen Wagner, LMC International, Raleigh, NC

The state of the European GI wines sector: a comparative analysis of performance

World of sugar PAGE 54

Outlook for the. ASEAN INTERNATIONAL SEMINAR ON COFFEE June 2012 Kuta, Bali, Indonesia

Outlook for Global Recovered Paper Markets. Global OCC Market. Global ONP Market RISI. Hannah Zhao, Economist, Recovered Paper October 2012

Soybean Oil and Palm Oil Account For An Increasing Share of World Vegetable Oil Consumption

Effect of new markets on the supply-demand balance

Coffee Market Outlook

World sugar market. Platts/Kingsman EU conference Geneva 14th of April Benoît Boisleux

January 2015 WORLD GRAPE MARKET SUPPLY, DEMAND AND FORECAST

Coffee market ends 2017/18 in surplus

Fresh Deciduous Fruit (Apples, Grapes, & Pears): World Markets and Trade

THIRSTY ASIA A MARKET ANALYSIS. Presentation by Richard Hall Chairman, Zenith International Ltd. AUSDRINKS 21 March 2016, Sydney

Paper Packaging Practice June Copyright 2015 RISI, Inc. All rights reserved.

THE GLOBAL PULSE MARKETS: recent trends and outlook

A world of opportunity for premium Australian beef. Richard Norton, Managing Director Meat & Livestock Australia

and the World Market for Wine The Central Valley is a Central Part of the Competitive World of Wine What is happening in the world of wine?

International Sugar Organization. Global Sugar and Sweetener Market after 2017

Overview of the Manganese Industry

United States Is World Leader in Tree Nut Production and Trade

World vitiviniculture situation

THE OUTLOOK FOR METAL CANS 2014 EDITION TABLE OF CONTENTS

Global Cocoa Butter Equivalent (CBE) Market - Volume and Value Analysis By Type, By Region, By Country: Opportunities and Forecast ( )

Opportunities for EU Sugar Post-2017

State of the Vitiviniculture World Market

World Sweet Cherry Review

THE CHANGING ROLE OF WHEAT IN OUR WORLD

Global Sugar Substitute Market: An Analysis

Fresh Deciduous Fruit (Apples, Grapes, & Pears): World Markets and Trade

Record exports in coffee year 2017/18

ICC September 2018 Original: English. Emerging coffee markets: South and East Asia

World Yoghurt Market Report

Milk and Milk Products: Price and Trade Update

AMAZONIA (BRAZIL) NUTS MACADAMIAS HAZELNUTS PISTACHIOS WALNUTS PINE NUTS PECANS

Fresh Deciduous Fruit (Apples, Grapes, & Pears): World Markets and Trade

Citrus: World Markets and Trade

Outlook for the World Coffee Market

World Scenario: Oilseed Production

Global Hot Dogs Market Insights, Forecast to 2025

2018 World Vitiviniculture Situation. OIV Statistical Report on World Vitiviniculture

Coffee Season 2013/14 Finishes in Balance but Deficit Expected Next Year

Coffee prices rose slightly in January 2019

Coffee market ends 2016/17 coffee year in deficit for the third consecutive year

Coffee market remains volatile but lacks direction

Chapter 5. Sugar. Market situation. Projection highlights

Global Trade in Mangoes

Milk and Milk Products. Price and Trade Update. Weekly Newsletter. Milk and Milk Products. Price and Trade Update: April

2017 U.S. DISTILLERS GRAINS EXPORTS

China: Opportunities & Challenges for Produce from South America. Mabel Zhuang Director, M.Z. Marketing Communications PMA China Consultant

CHALLENGES AND OPPORTUNITIES FOR FOOD MANUFACTURERS

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S.

LETTER FROM THE EXECUTIVE DIRECTOR

Consistently higher production and more exportable supplies from Thailand are major factors in the decline in world rice prices in 2014 and continued

North America Grains Outlook

CHAPTER 6 COMPARISON BETWEEN THE SUGAR INDUSTRY OF INDIA, BRAZIL, EUROPEAN UNION, THAILAND AND AUSTRALIA

July marks another month of continuous low prices

Dairy Market R E P O R T

2018/19 expected to be the second year of surplus

World Dairy Situation. IDF SC DPE, Paris April 11, 2013

EU sugar and its evolving role on the world stagehow are the value chain adapting? A buyers perspective. Marc Painsmaye

Professor Hans-Wilhelm Windhorst, IEC Statistical Analyst. Recent patterns of egg production and trade A status report on a regional basis

ANALYSIS ON THE STRUCTURE OF HONEY PRODUCTION AND TRADE IN THE WORLD

LETTER FROM THE EXECUTIVE DIRECTOR

Strong U.S. Soybean Exports to Date Should Lead to Marketing Year Record

World vitiviniculture situation

Record exports from Brazil weigh heavy on the coffee market

Global Cognac & Brandy Insights

OIV Revised Proposal for the Harmonized System 2017 Edition

Prices for all coffee groups increased in May

Record Exports for Coffee Year 2016/17

Agriculture and Food Authority

The IWSR Global LOCAL KNOWLEDGE, GLOBAL INTELLIGENCE

Monitoring EU Agri-Food Trade: Development until September 2018

World coffee consumption increases but prices still low

Red wine consumption in the new world and the old world

STATE OF THE VITIVINICULTURE WORLD MARKET

DEVELOPMENTS IN TURKISH STEEL INDUSTRY AND OUTLOOK

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S.

The Protein Era Challenges and opportunities for traditional and novel protein sources

Global UHT Milk Market Will Reach USD billion in 2019: Persistence Market Research. Persistence Market Research

Citrus: World Markets and Trade

MARCOS S. JANK. JAPAN BRAZIL Bilateral Dynamics and Partnership in the Agri-Food Sector

Outlook for the World Coffee Market

World Cocoa Conference Nov 2012

Asian Bitumen Supply/Demand Update. Seah Siew Hua Argus Media November 2009, Singapore

LETTER FROM THE EXECUTIVE DIRECTOR COFFEE MARKET REPORT. November 2004

Coffee market settles lower amidst strong global exports

Dragon Fruit Market Analysis

Policy Strategies to Reduce the Consumption of Sugar Sweetened Beverages

Coffee market ends 2015/16 in deficit for the second consecutive year

2016 World wine production estimated at 259 mhl, a fall of 5% compared with 2015

Dairy sector: production and exports to Russia

Monthly Economic Letter

Angela Mariani. University of Naples Parthenope

Germany is the largest importer of cheese and UK and Italy are the second- and third-largest importers.

Coffee: World Markets and Trade

Join the Conversation on Twitter: #FreshConnections PRODUCE MARKETING ASSOCIATION

Transcription:

The evolving future of the sugar industry José Orive, Executive Director International Sugar Organization

21 st Century Tectonic Shifts in the World Sugar Economy inter alia since 2001 world production has grown by 50 mln tonnes or 40% the volume of world sugar trade has grown grew by 20 mln tonnes or 50% the introduction of flexible-fuel vehicles in Brazil and new paradigm of cane use the EU sugar regime reforms in 2006 and 2017 a creation of the common sweeteners market in NAFTA robust growth of sugar output in Thailand and Russia an impressive growth of imports by China mushrooming destination refineries growing importance of VHP sugar in the international trade a widening anti-sugar campaign in many countries all over the world

180,000 World Sugar Production and Consumption, 2001-2017 (in 1,000 tonnes, tel quel) 160,000 140,000 120,000 100,000 80,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Production Consumption Linear (Production)

4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Growth rates of global consumption (in %) consumption growth Linear (consumption growth)

6,000 5,000 4,000 3,000 2,000 1,000 0 Year-on-Year growth in world sugar consumption (in 1,000 tonnes) y-o-y gorwth Linear (y-o-y gorwth)

Usage is forecast to grow further to reach almost 200 tonnes by 2021/22. August 2012 World sugar consumption in 2021 = 202 mln tonnes June 2012 The new ISO sugar consumption model puts world sugar consumption in 2020 at 201 mln tonnes, a worldwide projected annual growth of 2% a year. October 2010 - MECAS(10)17

Usage is forecast to grow further to exceed 200 mln tonnes, raw value, in 2023/24. August 2018 World sugar consumption in 2027 = 198 mln tonnes, tel quel June 2018 Assuming an average growth rate at a level of about 1.6% tonnes world consumption of sugar may reach 200 mln tonnes, tel quel, in 2025/26 September 2018

Statistical technicalities disappearance consumption consumption human intake

Statistical technicalities Disappearance v human consumption Table 51 -- Refined cane and beet sugar: estimated number of per capita calories consumed daily, by calendar year 1/ Primary Loss from Weight Loss from Weight Loss at consumer level Per capita Calories Calories Servings weight primary to at retail/institutional at Other consumption, per Serving consumed (teaspoons) Year (market retail retail to consumer consumer Nonedible (uneaten food, adjusted serving weight daily 3/ consumed level) 2/ weight level level level share spoilage, etc.) for loss (teaspoon) daily 4/ lb/yr percent lb/yr percent lb/yr percent percent lb/yr oz/day g/day number grams number teaspoons 2011 65.9 0.0 65.9 11.0 58.7 0.0 34.0 38.7 1.7 48.1 16.0 4.2 183 11.5 2012 66.7 0.0 66.7 11.0 59.3 0.0 34.0 39.2 1.7 48.7 16.0 4.2 185 11.6 2013 68.0 0.0 68.0 11.0 60.5 0.0 34.0 40.0 1.8 49.6 16.0 4.2 189 11.8 2014 68.4 0.0 68.4 11.0 60.9 0.0 34.0 40.2 1.8 50.0 16.0 4.2 190 11.9 2015 69.2 0.0 69.2 11.0 61.5 0.0 34.0 40.6 1.8 50.5 16.0 4.2 192 12.0 2016 69.7 0.0 69.7 12.0 61.3 0.0 34.0 40.5 1.8 50.3 16.0 4.2 192 12.0 Source - https://www.ers.usda.gov/data-products/sugar-and-sweeteners-yearbook-tables/sugar-and-sweeteners-yearbook-tables/#u.s.%20sugar%20supply%20and%20use

Statistical technicalities The ISO does not include the sugar equivalent of beet and cane that were not processed into the end product crystal sugar (such as those used for fuel ethanol or biogas) in its sugar production estimates or

Statistical technicalities The trade of sugar-containing products?

Long-term outlook The most important drivers of sugar consumption: Population growth, Per capita incomes, Domestic prices for sugar and sugar-containing products, The availability of alternative sweeteners and their prices, Changes in dietary habits (diet globalization), and since recently Health concerns.

Long-term outlook Population and Sugar Consumption Growth Rates in % Consumption growth 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 1.0400 1.0300 1.0200 1.0100 1.0000 0.9900 0.9800 Population growth consumption growth population growth Linear (consumption growth) Linear ( population growth)

Long-term outlook Sugar consumption by regions (in 1,000 tonnes) 50 45 40 35 30 25 20 15 10 5 0 Per capita consumption by regions (kg per head), 2013-2017 2013 2014 2015 2016 2017 45000 40000 35000 30000 25000 20000 15000 Far East and Oceania Indian Subcontinent Middle East and North Africa Equatorial and Southern Africa Western and Central Europe Eastern Europe and FSU NAFTA South America Central America W & C Europe E Europe and CIS North America MENA Indian Subcontinent Far East SubSahara Africa WORLD AVERAGE 10000 5000 0 2002/03 2003/04 2004/05 2005/06 2006/07 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14.2014/15 2015/16 2016/17 2017/18 2018/19 Central America South America

Long-term outlook The most important drivers of sugar consumption: Population growth, Per capita incomes, Domestic prices for sugar and sugar-containing products, The availability of alternative sweeteners and their prices, Changes in dietary habits (diet globalization), and since recently Health concerns.

"The sugar tax is too sexy for politicians Everyone will jump immediately" Adamo Uboldi, the European Commission's DG AGRI sugar team, April 2018 Sugar Tax World Map North America - Barbados - Dominica - Mexico - US* Europe - Belgium - Denmark - Finland - France - Hungary - Norway - UK Asia - Indonesia South America - Argentina - Chile Africa - Mauritius - Saint Helena - South Africa Oceania - Fiji - French Polynesia - Nauru - Samoa - Tonga

Long-term outlook The most important drivers of sugar consumption: Population growth, Per capita incomes, Domestic prices for sugar and sugar-containing products, The availability of alternative sweeteners and their prices, Changes in dietary habits (diet globalization), and since recently Health concerns.

Long-term outlook The most important drivers of sugar consumption: Population growth, Per capita incomes, Domestic prices for sugar and sugar-containing products, The availability of alternative sweeteners and their prices, Changes in dietary habits (diet globalization), and since recently Health concerns.

The Sugar Backlash

Key messages to take away: Global sugar consumption peeks growing but at a slower rate (satisfying this growth will be a challenge but it is one which the sugar industry is likely to rise up to); All the stock holders including the governments need reliable and coherent data on the actual human intake of sugar; Governments must stand up and defend sugar consumption invoking sound scientific evidence and the contribution of sugar for development. Sugar companies must engage in the dialogue

Thank you! José Orive, Executive Director International Sugar Organization