Dwindling Global Sugar Price to Trigger Restructuring of Industry

By CnAgri2013-01-04 11:15:48 Print     F.O.licht mentioned the falling of price shall expose the weakness of a number of companies, shall trigger industrial restructuring and provide acquisition opportunities for companies with capable assets.
 
    During the month ISO raised the forecast on global sugar surplus by 300,000 tons to 6.2 million tons in 2012/13. It warned the global price may be on a downward slope till the end of the year.
 
    Mild growth of turnover means revenue can be improved through reduction of cost, whereas restructuring shall bring down cost through better technology and organizational scale, hence the global sugar industry may become more concentrated.
 
    Since the Brazilian sugar industry is highly scattered, the restructuring trend shall sustain.

From “China Sugar Market Monthly Report”