|Sugar – United Kingdom|
The net importer of sugar, United Kingdom needs to buy around 50% of its national consumption at international markets, accounting for an average of 1MMT of sugar per year. Half of that volume is supplied by the EU and the other half comes from emerging economies.
The EU is basically responsible to provide white sugar, where mostly shipments are coming from France, while emerging markets supply raw. The question that is laid out for a Hard Brexit, is whether raw sugar suppliers from least developed countries and America could supplement the British famine for a sweeter taste?
That could potentially boost the UK’s refining industry, although the country must underline what is the actual processing capacity and balances with the current and future subsidies it gives to sugar beet farmers (3,000 growers produce home grown sugar). From a few years back (2013) the UK was importing 700,000 mt of raw sugar to process.
All the speculations are yet to be unfolded for if the UK would potentially keep its trade agreement with emerging markets or engages Europe’s bloc.
On the other hand, the EU is discussing a deal with Mercosur for an additional 180 thousand tonnes of raw sugar imports. The deadline for the transition period is by December 2020, and an extension request shall be given until July this year.
Sugar – Thailand
The production of cane sugar is low this year due to the drought. Out of 57 sugar factories in Thailand, only eight factories are still operating. The remaining have no raw material for the feed.
Avocado – Peru
Coronavirus is affecting some avocado supplies in Europe. As buyers are unaware of when or how the situation is going to be resolved, they have put a halt on their purchases. The situation is generating a problem on the suppliers’ side since they are finding themselves with a perishable product on the field, ready to be exported, but with a low demanding volume.
Lobster – Canada
Nova Scotian lobster buyers and processors are asking fisheries to halt production as global demand has crashed due to the Coronavirus. The decrease in demand from Asia Pacific, Europe, and North America has created a situation where more lobsters are being caught than the industry can process.
Maize – South Africa
While the situation is stabilising in China, the Coronavirus outbreak could still affect South African maize exports as China is a major importer of its grains. This could be detrimental to farmers after they have seen harvest increase by 35% this season.