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London - The world sugar price has risen above the European Union (EU) price, making the European market less attractive and other markets more appealing for South Africa-based producer Illovo Sugar [JSE:ILV], a senior executive said on Wednesday.
"Is an African invasion (of the European market) imminent? It's unlikely because the world has changed," Illovo Sugar Managing Director Graham Clark told a seminar of the International Sugar Organisation (ISO).
"The EU floor price is no longer appropriate or attractive," he added, referring to the bloc's floor price for sugar sold by developing nations to the EU.
"The stronger world price is making other markets more attractive than the European market at the moment."
Clark also voiced concerns about the weak euro, which he said reduced the attractiveness of the EU as a market.
ICE front-month raw sugar futures prices SBc1 surged to a 30-year high of 33.39 cents a lb on November 11, bolstered by tight export availability from leading producers Brazil and India, and low global stocks.
