brexit sugar article

Sir, I read with interest the article ‘What sugar can tell us about the Brexit debate’ (11 June, p30). The global sugar industry is moving into a new era; the deregulation of the EU beet sugar policy in 2017 will redefine our whole industry because when a highly developed world sugar producer like the EU restructures, the global sugar trade feels the impact.

Back in 2006 we started preparing for 2017 and we saw massive reduction in the scale of the European beet sector; in a five-year period we saw 192 factories reduced to 106 and some 44% of sugar jobs lost. British Sugar took difficult decisions to rationalise, invest in larger, more integrated factories and establish the building blocks for the future. The refining sector in Europe doubled its capacity.

At British Sugar we maximised asset utilisation, reduced overhead costs and improved our competitive position. With the backing of our parent, ABF, and the right factory footprint, we have optimised and invested well. The very low EU pricing of the past 12 months shows how essential this approach is. The new sugar market will be as competitive as other commodities markets, which could lead to casualties. At British Sugar we want to work closer with our farming partners and our customers to ensure our supply chains remain competitive.

Irrespective of the referendum, it’s about focusing on readying our businesses for the upcoming changes in order to ensure the sustainability of the UK sugar beet industry.

Paul Kenward, MD, British Sugar