Firms sever sugar sites as EU laws loom

Dutch firm CSM is debating the sale of its sugar division as new reforms for EU exports come into force in July. The changes will affect both the sugar industry and beet growers, particularly as EU agriculture ministers have agreed to cut the price for sugar by 36% in November.
CSM Sugar produces up to 380,000 tons of sugar annually. Based in Diemen, the Netherlands, the company has two production sites – Vierverlaten, which processes 18,500 tons of sugar beet daily; and Breda, which produces syrup, caster sugar and liquid sugar. The company, which has an annual turnover of £250 million, is intending to focus on bakery ingredients and lactic acid. Gerard Hoetmer, CEO at CSM says,“The factory in Vierverlaten is one of the most efficient in Europe. We still see scope for further efficiency improvements, but the new EU sugar regulation will open a new era. By selling it we expect CSM Sugar to retain its strong position both in the short and long term. CSM does not see itself as the consolidator of the European sugar market.
The current EU regulation expires in July 2006, and the new regulation will become effective and continue to 2014/2015.
The new sugar rules are already affecting Danish producer Danisco, which has announced plans to close three Nordic plants, with the loss of up to 350 jobs.
CSM said it would integrate some of the operations of two of its French bakery supplies, Delices de la Tour in Paris and Bakemark Ingredients France in Strasbourg, with further job losses expected over the next two years.