CZECH AND EUROPEAN SUGAR INDUSTRY - SITUATION 2013/2014

While sugar cane still remains the world's no. 1 crop for sugar production, its use for this purpose has been stagnating. Sugar beet, [GRAPHICS] on the other hand, continues to show both qualitative and quantitative growth potential. Last year's world sugar production exceeded 181 million tonnes, and sugar consumption amounted to 175.8 million tonnes, i.e. an increase of 3.5 million tonnes compared to the previous year. Since the Sugar Common Market Organisation reform, the European Union has been showing an annual deficit of 3-4 million tonnes of sugar, handled through importations from third countries. These take place on the basis of reduced-duty tenders, duty-free importations, or industrial (non-food) sugar importations. This situation will change radically as of 30th September, 2017, when the quota regime is scheduled to expire, and the sugar market as a whole will be liberalised. Even though the Czech Republic is highly competitive, it must work hard to get prepared for the new liberal environment. As to bioethanol, 90 % of all production capacity is located in North, Central, and South America. In the Czech Republic, 1.3 million hectolitres of bioethanol were manufactured in 2013, together with 400-450 thousand hectolitres of food-grade alcohol.