Sugar 2011

An Expert's View about Agriculture and Animal Husbandry in Greece

Last updated: 5 May 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.

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: 4/29/2011 GAIN Report Number: GR1102 Greece Post: Rome Greece Sugar 2011 Report Categories: Sugar Approved By: James Dever Prepared By: Ornella Bettini Report Highlights: 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. Sugar 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
Posted: 04 May 2011, last updated 5 May 2011

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