28 October 1999
Shake up looms for sugar

CONTINUING low prices are set to knock high-cost producers out of the sugar market, says Tony Hannah, head of economics and statistics at the International Sugar Organisation.

He told a conference in Brussels yesterday that “rebalancing” of supply and demand would occur but said it would take three or four years to work through.

That view was echoed by Kees Verbeek, an analyst at Rabobank International.

He said sugar producers were unusually slow to respond to changes in prices.