Refined sugar supply to remain tight

Refined-sugar supply is 'likely to be tight' in 2007 due to a lag between new processing capacity and cuts in exports of the sweetener from the European Union, C Czarnikow Sugar said.

The 27-nation EU is becoming a net importer after Brazil won a World Trade Organisation dispute in 2005 that stops growers from sending abroad their surplus production.

The transition helped limit the decline in refined-sugar prices to 13 per cent in the past year compared with a 30 percent drop in raw sugar.

The availability of refined sugar is likely to be tight this year, though the position will begin to ease in 2008.