It’s all about sugar as we head to Dubai in a couple of weeks. Cargill Risk Management has attended the Dubai Sugar Conference since its inception, and we look forward to seeing many of you there! This is an important event for sugar both in the region and worldwide, so our global team will be there from Brazil, Singapore, the U.S. and Switzerland.
As we get ready for that event, we are providing some information about the sugar markets around the world. You can see our overview of Brazil that we posted earlier this month. This article will focus on the Middle East.
Food for thought
- Total sugar market overview: The sugar market as a whole was at $5.9 billion in 2018 – in line with the previous year. This number is derived from the total revenue of producers and importers – minus logistics and retail marketing costs, and retailers margins, which are included in the final consumer price.*
- Middle East sugar market overview
- Market value: Middle East market value increased at an average rate of +3.9% from 2007 to 2018. The market value increase was largest in 2011, seeing a 20% increase over the previous year. According to IndexBox, when looking at the 2007-2018 timeframe, the sugar market attained its peak figure level in 2018 and is likely to continue its growth in the near future.
- Production: In 2018, the Middle East refined 4.1 million tons of raw sugar, which was up 2.4% from the previous year. Total production increased at an average annual rate of +2.2% over the previous year.
- Here’s an overview of the raw sugar imports in the Middle East for 2018. UAE, Iraq and Saudi Arabia combined represented 72% of total imports.
- UAE 1.2 million tons
- Iraq 1.1 million tons
- Saudi Arabia 1.1 million tons
- Iran 689k tons (15% of total imports)
- Yemen (6.4% of total imports)
- Jordan and Israel are distant followers
- Prices: In 2018 the average import price for sugar in the Middle East stood at $324 per ton, dropping by 16.7% from the previous year.
Cargill Risk Management takes the time to understand the sugar market in the Middle East so that we can provide risk management tools that help them effectively manage their businesses. We have been in the Middle East since 1996. In fact, sugar was the first commodity we worked with in the region, so we have robust solutions through both physical contracts and directly with consumers. Globally, we work with customers across the sugar value chain from producers and refiners to the end consumer. While we started in the sugar space, we work with companies to manage their risk for a variety of commodities.
We look forward to seeing you in Dubai!