Europe's biggest sugar maker, Germany's Suedzucker, is considering acquisitions in Brazil, its chief executive told Reuters. Wolfgang Heer said Suedzucker had the financial power and know-how to make large acquisitions if required, which could be outside the European Union if necessary.
"Naturally we are always examining projects for growth by acquisitions, not only for sugar," he told Reuters in an interview.
Brazil is the world's largest sugar producer but extracts sugar from cane rather than beet, as is used in Europe.
"Apart from the raw material being different, sugar production from cane or from beets is very similar," he said.
Heer said that Europe's largest sugar refiner was experienced in production technology and that its agricultural raw materials experts would be able to cultivate sugar cane.
"It must not necessarily be a take-over costing billions. I can achieve the same with a small take-over over a long period as with a large take-over," he added.
Heer said he expects firm sugar prices in coming months.
On October 13, Suedzucker said rising sugar prices helped it post an 81 percent jump in first-half net profits in its 2016/17 financial year starting in March. Raw sugar futures hit a four-year high in October as lowered expectations for Indian production and a weak end to the cane processing season in Brazil lent support to talk of a potential global supply deficit.
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