Greece Sugar 2012 Annual

An Expert's View about Vegetables and Melons, Roots and Tubers in Greece

Posted on: 28 Jun 2012

Following recent signals from the European Commission that sugar production quotas will be phased out by 2015/16, MY 2012/13 Greece's sugar production is forecast to increase slightly.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 5/10/2012 GAIN Report Number: GR1204 Greece Post: Rome Greece Sugar 2012 Annual Report Categories: Sugar Approved By: Jim Dever Prepared By: Ornella Bettini Report Highlights: Following recent signals from the European Commission that sugar production quotas will be phased out by 2015/16, MY 2012/13 Greece's sugar production is forecast to increase slightly. The Hellenic Sugar Industry (HSI) is the only sugar producer in Greece and one of the most significant agricultural industries of the country. Thus far, Greece does not produce bioethanol from sugar or other crops. Sugar Production, Consumption, and Trade Table 1: Production, Supply and Demand (ha) (MT) 2010 2011 2012 Estimates Estimates Forecast Sugar 2010/2011 2011/2012 2012/2013 Post Data Post Data Post Data Area Harvested 13,400 10,000 13,200 Beet Sugar Production 83,897 91,308 100,439 Total Sugar Production 83,897 91,308 100,439 Raw Imports 8,400 43,315 44,000 Refined Imp. (Raw Val) 260,836 318,971 313,200 Total Imports 269,236 362,286 357,200 Total Supply 353,133 453,594 457,639 Raw Exports 837 5,298 5,100 Refined Exp. (Raw Val) 127,132 115,587 116,640 Total Exports 127,969 120,885 121,740 Human Dom. Consumption 225,164 332,709 335,899 Total Distribution 353,133 453,594 457,639 Source: Unofficial estimates; GTA Following recent signals from the European Commission that sugar production quotas will be phased out by 2015/16, MY 2012/13 Greece's sugar production is forecast to increase slightly. Even so, the current economic situation will make it difficult for the next couple of years. The main producing areas include the prefectures of Imathia and Serres in Macedonia; Evros and Xanthi in Thrace; Larissa in Thessaly. Greek sugar production is mainly destined for the confectionary, canning, and food processing industry. MY 2012/2013 sugar consumption is forecast to remain flat. Greece imports the majority of its sugar from Serbia, Belgium, Mauritius, Croatia, France, and Denmark. Bulgaria continues to be the main destination for Greek sugar exports. The Hellenic Sugar Industry The Hellenic Sugar Industry (HSI) is the only sugar producer in Greece and one of the most significant agricultural industries of the country. HSI mainly produces and trades white crystal sugar and its by- products: molasses, sugar-beet pulp pellets, Nutrica 135, and fresh pulp. Specifically, molasses is a sugar by-product used as a raw material to produce alcohol, yeasts, and cattle feed. Sugar beet pulp pellets - prepared with dry pulp and molasses - are almost entirely used for cattle feed. Nutrica 135 - prepared with dry pulp and molasses, with the addition of trace elements and vitamins - is used mainly for fattening calves. Fresh pulp - prepared with a bigger content of water than the sugar beet pulp pellets – is used for cattle feed. The Hellenic Sugar Industry under the new CAP In MY 2006/07, the EU launched a new CAP (Common Agricultural Policy) reform for the sugar sector, in order to ensure a long-term sustainable future for sugar production and enhance the competitiveness of the sector. Specifically, the reform cut by 36 percent the guaranteed minimum sugar price (from 631.9 €/MT in 2006/2007 to 404.4 €/MT in 2009/2010) and reduced domestic production quotas, providing compensations to growers and processors. By implementing the CAP reform, Greece reduced its sugar quota by 50.1 percent from 317,502 MT to 158,702 MT. Consequently, the Hellenic Sugar Industry closed Larissa and Xanthi plants, receiving a compensation of €118 million. Since May 2007, HSI has sought international investors providing capital to convert the sugar factories in Larissa and Xanthi into bioethanol production units, at an estimated cost of €200 million. HSI aimed at producing 300,000 cubic meters of bioethanol annually, in conformity with the European Commission Directive N. 2003/30 setting at 5.7 percent by the end of 2010 the share of energy from renewable sources consumed by the transport sector (set at 10 percent by 2020 - EU Renewable Energy Directive N. 2009/28). To date, negotiations to convert the two plants in Larissa and Xanthi have not been successful, due to the current economic climate. Abbreviations and definitions used in this report The PSD in this report only pertains to sugar as defined by HS 170111, 170112, 170191, 170199. It hence excludes sugar beet production destined for fermentation or other industrial purposes. Conversion factors and methods used in this report: MY = marketing year for sugar October - September Raw cane sugar = 1,07 X Refined cane sugar Raw beet sugar = 1,087 X White (refined) beet sugar
Posted: 28 June 2012

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