Investments in sugar industry viola-funding July 4, 2023

Investments in sugar industry

Long-term investment of sugar refineries
Long-term investment of sugar refineries and lending for the sector

The construction of a sugar refineries requires a long-term investment which is explained by the high cost of equipment and the adaptation of engineering solutions to the needs of a particular enterprise. Many sugar refineries are located far from sugar cane or sugar beet growing areas, so a well-developed infrastructure is also necessary for the efficient operation of the business.

Viola Funding Limited offers long-term investment and loan for the construction of sugar refineries, and investments in the sugar industry.

We are also ready to provide ready-made comprehensive solutions which include engineering, construction and financing of your project. Contact us for details.

 Prospects of long-term investments in the sugar refineries

The cost of building a sugar refinery can range from a couple of tens of millions of dollars to several hundred million dollars for large projects.

One such project is the sugar plant in Egypt, which will cost about $400 million and be the largest in the world. The launch of the project was announced by Canal Sugar Company in the first half of 2022. The first production lines with a capacity of about 18 thousand tons of sugar per day should be put into operation in 2023.

However, the market is still recovering from the collapse in demand as a result of the pandemic (about -18% in 2020), and the recent soaring natural gas prices have significantly affected the cost of refined sugar.

The opening of restaurants and cafes around the world, the growing production of baked goods, sweets, ice cream, soft drinks and alcohol is expected to stimulate investment in the sugar industry, as well as fuel investor interest in the related ethanol industry.

Growth in consumption of candy, confectionery, processed foods and sugar-added drinks continues to fuel market growth. An important driver of the recent growth has been a healthy lifestyle, which includes the consumption of less processed raw sugar instead of refined products. Many consumers prefer to buy organic sugar, despite the relatively high price.

The largest sugar producers in the world

Given the huge financial strength of these companies, they will maintain their technological edge and marketing leadership through increased funding for the modernization of existing sugar refineries and the expansion of innovative products in the coming years.

However, experts expect successful start-ups and small players to enter the market to offer organic products and brown sugar in line with changing consumer demands.

Sudzucker: Südzucker AG is the largest German sugar producer based in Mannheim and majority-owned by local sugar beet cooperatives. Today Südzucker has plants under the Südzucker brand in only three European countries: Germany, Poland and Moldova. Subsidiaries were founded in Poland (Südzucker Polska) and Moldova (Südzucker Moldova).

Tereos: Tereos S.A. is a French sugar business group that emerged in 2002 from the takeover of Beghin-Say by Sucreries et Distilleries des Hauts de France (SDHF) and the Union Sugar Mills and Agricultural Distilleries (Union SDA).

The company’s activities are focused on the processing of sugar cane, sugar beets and cereals.

The group also processes potatoes and cassava into starch products.

Cosan: Cosan S.A. is a large Brazilian company engaged in the production of sugar, alcohol, energy, as well as providing logistics services.

The company is investing in plants that produce and export ethanol and sugar, generating energy using sugar cane cake. It also supplies pipeline gas to Brazil and handles the logistics of sugar and other bulk solids for export. Producing lubricants and special products, the company is known in more than 40 countries in South America, Europe and Asia.

If you are considering building a new sugar plant or investing in sugarcane / beet farming, please contact Viola Funding Limited. We have vast experience in financing projects in the agriculture and food industry around the world.

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