According to unofficial estimates, MY 2011/2012 sugar production, consumption, and trade is forecast to remain steady from the previous year. The Hellenic Sugar Industry (HSI) is the only sugar producer in Greece and one of the most significant agricultural industries of the country.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
GAIN Report Number: GR1102
Greece Sugar 2011
According to unofficial estimates, MY 2011/2012 sugar production, consumption, and trade is
forecast to remain steady from the previous year. 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.
Production, Consumption, and Trade
Table 1: Production, Supply and Demand (ha) (MT)
2009 2010 2011
Suga Estimates Estimates Forecast r 2009/2010 2010/2011 2011/2012
Post Data Post Data Post Data
Area Harvested 21,600 21,600 21,600
Beet Sugar Production 186,964 186,790 186,800
Total Sugar Production 186,964 184,790 186,800
Raw Imports 248,000 230,000 234,000
Refined Imp. (Raw Val) 20,859 17,400 17,600
Total Imports 268,859 247,400 251,600
Total Supply 455,823 434,190 438,400
Raw Exports 118,508 104,000 106,000
Refined Exp. (Raw Val) 10,237 9,048 10,000
Total Exports 128,745 113,048 116,000
Human Dom. Consumption 327,078 321,142 322,400
Total Distribution 455,823 434,190 438,400
Source: Unofficial estimates + Global Trade Atlas
According to unofficial estimates, MY 2011/2012 sugar production is forecast to remain steady
from the previous year. 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 to the confectionary, canning, and food processing industry. MY 2011/2012 sugar
consumption is forecast to remain stable. Greece imports the majority of its sugar from Serbia,
Belgium, and France. Bulgaria, Romania, and Cyprus continue 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 mainly used 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 2006/2007, 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.
The PSD in this report only pertains to sugar as defined by HS 1701. 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