APPENDIX II
OPTIONS AVAILABLE TO BEET PROCESSORS COMPARED
TO FULL TIME REFINERS
| Options | Beet
Processors
| Full Time
Refiners |
| Purchase of extra quota | Yes
| No |
| Access to Restructuring Fund | Yes
| No |
| Concurrent/Off Crop Refining | Yes
| No |
| Biofuel Production in the Future | Yes
| No |
| | |
APPENDIX III
MARGIN AVAILABLE IN A TOTALLY DEREGULATED MARKET
The British Sugar evidence includes a table that attempts
to enumerate the total refining margin available in a deregulated
market. Tate & Lyle had previously submitted a similar calculation
to the Committee in our previous supplementary evidence. However,
for the avoidance of doubt, the table below restates this calculation
using the format in the British Sugar evidence. The premium required
to secure Brazilian white sugar of EU quality, the need to ship
in containers rather than 50kg bags, and the correct conversion
of the white raw differential to a white basis are the three key
differences. The calculation yields a potential margin for a destination
refiner of $127—around
100 to
110 per tonne.
| $/tonne |
Raw/White Sugar Price Differential (1)
| 45 |
| Less Freight Discount (Santos Freight Differential)
| (13) |
| Premium to secure EU quality white sugar |
20 |
| Shipping Costs Differential | 55
|
| Unloading Costs Differential | 20
|
| Total available refining margin |
127 (2) |
| |
Notes
(1) Includes the conversion of the raw sugar price to
a white sugar equivalent, as explained in previous TALSE evidence
to the Committee.
(2) Around
100 to
110 per tonne at current exchange rates.
Tate & Lyle Sugars, Europe
November 2005
| 
