Required Report - Public distribution

**Date:** 4/10/2008

**GAIN Report Number:** E48042

E48042

**EU-27**

**Sugar**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)David Leishman

U.S. Mission to the EU

**Prepared by:**

J. Barrie Williams

**Report Highlights:**

The reformed sugar regime which came into effect on July 1, 2006 results
in a cut in sugar prices by 36 percent over four years with a voluntary
restructuring scheme aimed at reducing production by 6 million MT over
that period. Withdrawals to date amount to 4.84 million MT. Total sugar
production is forecast to fall by 5.2 percent in MY 2008/09. Imports are
expected to decline by 8.1 percent with exports remaining stable at the
WTO agreed level of 1.3 million MT. Human consumption should remain
stable in MY 2008/09 and other consumption including bioethanol is
expected to reach 1.8 million MT.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Brussels USEU \[BE2\]

\[E4\]

Thanks go to all who have contributed to this Report, particularly FAS
posts covering Germany, France, UK, Benelux, Austria, Bulgaria, Romania,
Czech Republic, Poland, Hungary and Slovakia.

**Executive Summary**

Total sugar production (beet and cane) for EU-27 remained stable at
around 17.7 million MT between MYs 2006/07 and MY 2007/08, and is
forecast to decline by some 5.2 percent to 16.8 million MT in MY
2008/09.

Imports declined by 8.8 percent in MY 2007/08, and are expected to fall
by a further 8.1 percent to reach 3.4 million MT in MY 2008/09.

Export quantities remain stable at around 1.3 million MT, reflecting the
WTO Panel Decision allowing the EU to subsidize a maximum of 1.3 million
MT of refined sugar annually.

Human domestic consumption declined by 13.4 percent in MY 2007/08, with
forecast consumption remaining stable at that level in MY 2008/09. Other
disappearance and bioethanol increased by 25 percent in MY 2007/08 to
reach 1.5 million MT, and is expected to reach 1.8 million MT in MY
2008/09.

**Policy background**

Agreement was reached on major reform of the sugar regime in November
2005 and the new European Union sugar regime came into effect on July 1,
2006. Sugar prices in the EU are to be cut by 36 percent over four years
alongside a voluntary restructuring scheme aimed at reducing production
by around 6 million MT in the same period.

The restructuring scheme offered producers who would be uncompetitive at
the new lower price a financial incentive to leave the sector. In the
event, significantly less quota was renounced during the first two years
of the scheme than anticipated. As such, changes had to be made to make
the scheme more attractive.

In September 2007, EU agriculture Ministers backed changes to the
restructuring scheme with the aim of reducing EU sugar production to
sustainable levels. The main changes agreed were:

-   the percentages of the aid given to growers and machinery
    contractors are fixed at 10 percent, but growers who renounce quota
    receive an additional payment;

-   retroactive payments are foreseen to avoid penalizing those who have
    already given up their quotas;

-   beet growers may apply directly for aid from the restructuring fund
    up to a certain limit;

-   those companies which renounce a certain amount of their quota in MY
    2008/09 will be exempted from paying the restructuring levy on the
    part of their quota which was subject to preventive withdrawal in MY
    2007/08;

-   a two step application for renouncing quota for MY 2008/09 is
    introduced, where the first step (deadline January 31, 2008) as a
    minimum has to correspond to the preventive withdrawal decided in
    March in order to be able to participate in the second step
    (deadline March 31, 2008). The European Commission informs companies
    after the first step to what extent they risk an uncompensated cut
    in 2010 if they do not participate in the second step.

The sugar sector as a whole should give up 1.16 million MT of quota in
2010. This figure is based on withdrawals made to date under the revised
sugar restructuring fund. Of the targeted withdrawal of 6 million MT of
sugar from the market, so far 4.84 million MT have been withdrawn.

If insufficient quota were to have been renounced by 2010, the
Commission would make compulsory quota cuts with no financial
compensation that would vary depending on how much quota each Member
State had renounced under the restructuring scheme. The Commission
recently has announced that such cuts may impact nine Member States in
2010 if producers do not make appropriate voluntary withdrawals. More
specifically, the Commission announced that the largest cuts would be
ordered in Romania (11.7 percent) and Bulgaria (11 percent), followed by
Latvia (9.6 percent), Austria (9.5 percent), U.K. (9.5 percent), Germany
(9.5 percent), Denmark (9.4 percent), France (9 percent) and Poland (9
percent).

Industry sources suggest that the entirety of the 6 million MT should be
voluntarily withdrawn by 2010, and asserts that in the third year of the
reform process 73 of the 183 factories will close.

(Data are expressed in raw sugar equivalents unless otherwise
mentioned**)**

  ---------------------- ------------- ------------ ------------- ------------ ------------- ------------
  **EU27 Sugar,                                                                              
  Centrifugal** (1000                                                                        
  MT)                                                                                        

  ** **                  **2006/07**                **2007/08**                **2008/09**   

  ** **                  **USDA        **Post       **USDA        **Post       **USDA        **Post
                         Official      Estimate     Official      Estimate     Official      Estimate
                         \[Old\]**     \[New\]**    \[Old\]**     \[New\]**    \[Old\]**     \[New\]**

  **Marketing Year       **July 2006**              **October                  **October     
  Begins**                                          2007**                     2008**        

  Beginning Stocks       5,088         5,088        4,704         4,005                      4,769

  Beet Sugar Production  17,140        17,450       17,150        17,400                     16,500

  Cane Sugar Production  310           307          340           340                        314

  **TOTAL Sugar          **17,450**    **17,757**   **17,490**    **17,740**   **0**         **16,814**
  Production**                                                                               

  Raw Imports            2,000         3,495        2,220         2,950                      2,710

  Refined Imports (Raw   740           843          700           700                        644
  Value)                                                                                     

  **TOTAL Imports**      **2,740**     **4,338**    **2,920**     **3,650**    **0**         **3,354**

  **TOTAL SUPPLY**       **25,278**    **27,183**   **25,114**    **25,395**   ** **         **24,937**

  Raw Exports            5             5            5             5                          5

  Refined Exports (Raw   1,369         2,157        1,369         1,381                      1,374
  Value)                                                                                     

  **TOTAL EXPORTS**      **1,374**     **2,162**    **1,374**     **1,386**    **0**         **1,379**

  Human Domestic         18,000        19,816       18,400        17,165                     17,200
  Consumption                                                                                

  Other Disappearance/   1200          1200         1,500         1,500                      1,830
  Bioethanol                                                                                 

  **Total                **19,200**    **21,016**   **19,900**    **18,665**   **0**         **19,030**
  Disappearance**                                                                            

  Ending Stocks          4,704         4,005        3,840         4,769                      3,536

  **TOTAL DISTRIBUTION** **25,278**    **27,183**   **25,114**    **24,820**   **0**         **23,945**
  ---------------------- ------------- ------------ ------------- ------------ ------------- ------------

Source: Post estimates from EU FAS posts

**Market situation in the Member States**

[Germany]{.underline}

Post reports area planted to beet in MY 2008/09 is likely to decrease by
some 19 percent to 330,000 ha when compared to the previous year's area
of 406,000 ha. Beet should be planted in April at the same time as corn.
It seems likely that more land will go to silage corn competing with
sugar beet as German farmers, to their regret, invested heavily in
biogas facilities in recent years. In MY 2008/09, 300,000 ha should be
for sugar use with the remaining 30,000 ha for ethanol. This compares to
386,000 ha and 20,000 ha respectively for MY 2007/08. Beet agronomic
yields should decline to 60.0 MT/ha in MY 2008/09 giving rise to beet
production of 20.0 million MT, from 64.3 MT/ha and a production figure
of 26.12 million MT in the previous year. Sugar production is forecast
to decline by 22.7 percent from the MY 2007/08 figure of 4.4 million MT
to reach 3.4 million MT in MY 2008/09. 3.25 million MT is destined for
the food industry with 0.028 million MT being used in the chemical
industry in MY 2008/09. 3.25 million MT has been used in the food sector
in the previous period, with 0.028 million MT going to the chemical
industry in MY 2007/08.

The German sugar quota is expected to reduce by some 700,000 MT or 19
percent to 3.0 million MT. In some regions, notably Schleswig-Holstein
and parts of Mecklenburg-Vorpommern, farmers are likely to cease
planting sugar beet. This is due to the continued closure of smaller
sugar mills resulting in greater transportation distances to the nearest
mill.

Those farmers not giving up sugar beet production are expected to plant
as much as they can to ensure that they fill their quota even if
harvested yields are below average. This implies the production of out
of quota sugar (ex- 'C-quota' sugar).

Enthusiasm for ethanol production from grain and other field crops has
diminished during the past year. Only two major ethanol plants,
Suedzucker (CropEnergies) and Nordzucker, are currently in operation,
and put their hope in political initiatives favoring ecologically
friendly production standards.

[France]{.underline}

Post reports that the area planted to beet in MY 2008/09 should decrease
by 7 percent to 370,000 ha compared to 394,000 ha for the previous year.
Beet production in MY 2007/08 reached 32.4 million MT with resultant
sugar production estimated at 4.1 million MT. An additional 0.286
million MT of cane sugar came from the French overseas territories.

In MY 2007/08, 95,000 ha were used to produce 570,000 MT or 7,125,000 Hl
of alcohol and ethanol. This is set to increase to 100,000 ha producing
600,000 MT or 7,500,000 Hl of alcohol and ethanol in MY 2008/09. This
slight increase results from significant surpluses impacting MY2008/09
alcohol and ethanol supply/demand situation despite more agreements.

Post estimates that the sugar beet area will decline from 400,000 ha
before the reform of the CMO to between 350,000 ha and 370,000 ha after
the reform. Income is estimated to decline by up to 50 percent.

[UK]{.underline}

A 4.3 percent fall in the area of contracted sugar beet and an increase
in yields of 6.2 percent compared to 2006 led to an increase in
production of 1.7 percent to 7.5 million MT. Average sugar content for
2007 was higher at 17.2 percent. Average market prices in 2007 fell by
5.2 percent which led to a decrease in the overall value of production
in 2007 of 3.6 percent. UK sugar beet area in the U.K. reached 102,000
ha in MY 2007/08 producing 1.2 million MT of sugar. Production as a
percentage of total new supply for use in the U.K. fell to 63 percent,
and 11 percent decrease on 2006.

It is anticipated that MY 2008/09 will see a decline in area of around 8
percent to 115,000 ha. Agronomic yield in MY 2008/09 is also expected to
fall from 60.2 MT/ha to some 58.0 MT/ha resulting in a projected volume
of harvested production amounting to 6.7 million MT as compared to 7.5
million MT in the previous period.

The U.K.'s first bioethanol plant was officially opened by British sugar
in September 2007. It is located alongside the world's largest beet
sugar factory in Norfolk, and at full capacity will produce 70 million
Lt of bioethanol annually from domestically grown out of quota sugar
beet.

As a consequence of the reform of the sugar regime, there has been some
consolidation of U.K. sugar production around British Sugar's most
productive factories in Lincolnshire, Norfolk and Suffolk. Production at
the Allscott factory in Shropshire has ceased and British Sugar
announced the planned cessation of production at their York factory,
although it is understood that this plan is currently under review.

[Benelux]{.underline}

Based on available quota and sugar beet seed sales, the reform of the
sugar regime is likely to the decline of Dutch and Belgian sugar
production by 10 percent, and 20 percent respectively.  In order to
survive, the main goal of the Benelux sector is to increase efficiency
and focus on quality.  The Dutch company Cosun took over the quota of
the other main Dutch sugar producer CSM.  Cosun abandoned the idea to
produce ethanol from sugar beet in the CSM plant in the North of the
country, and closed the plant.  At the moment only two sugar plants are
operational in the Netherlands.  Of the five Belgian plants two plants
already stopped production in MY 2006/07.  The three remaining plants
are expected to continue their production.  Sudzucker plans to start
bioethanol production from about 400,000 MT of sugar beets as from fall
2008.

[Austria]{.underline}

In MY 2007/08, the planted area of sugar beet in Austria accounted for
42,270 ha (an increase of 7.3 percent compared to the previous year).
The Austrian beet harvest, at 2.75 million MT, exceeded last year's crop
of 2.50 million MT. Due to dry weather conditions yield was below
average at about 64 MT/ha. Sugar production is estimated at 435,000 MT
in MY 2007/08. Austria's two remaining sugar mills are owned by AGRANA
and are located in the province of Lower Austria. After a preventive
quota reduction in February 2007 (by 13 percent), a sugar quota of
351,027 MT remains available.

The Austrian sugar industry announced that it will again apply for a
preventive quota reduction of 13.5 percent in MY 2008/09. Planted area
of sugar beet and sugar yield in MY 2008/09 is expected to remain at the
level of MY 2007/08.

Austria's annual sugar consumption is about 380,000 MT. Human
consumption accounts for some 320,000 MT or 39 kg per capita. In fall
2007, a new bioethanol plant was completed in Austria. Due to the high
raw material prices the plant is still running as a trial operation. It
is not possible to accurately predict when the plant will start running
as a normal operation. Although it will mainly process wheat, sugar
processing would also be possible.

Austria is a net exporter of sugar, and the majority of trade is made
with other EU Member States. If the new bioethanol plant were to start
working at full capacity, some of the export quantity may go to
bioethanol production.

[Bulgaria]{.underline}

Bulgaria is a small producer of sugar beet and is a net importer of raw
brown sugar for processing and of refined white sugar for consumption.

Today, there are 3 major plants processing raw sugar, only one of which
works with locally sourced sugar beet.

In 2005 and 2006, production was at the typical levels of 25,000 MT and
27,000 MT respectively. In 2007, sugar beet production reached 16,281 MT
from 1,343 Ha because of lower agronomic yields resulting from dry
climatic conditions.

Total imports of raw cane sugar in 2007 were 158,576 MT from the main
suppliers Brazil (134,275 MT) and Cuba (23,999 MT). There were no
exports.

Imports of refined white sugar amounted to 23,207 MT, from Greece
(15,000 MT), Hungary (3,866 MT), and Austria (1,000 MT).

Exports of refined sugar reached 36,000 MT destined for Romania (22,896
MT), Greece (9,849 MT), Macedonia (2,500 MT), UK (375 MT) and Russia
(428 MT).

No sugar is used for bioethanol, although a new installation with a
capacity of 25,000 MT is scheduled to go into operation this year.

Domestic consumption is around 200,000 MT (down from 500,000 MT), the
general decline trending more significantly for direct consumption and
less so for industrial demand from the confectionary industry.  Direct
consumption is some 80,000 MT with the remainder going to industry.
 Stocks run at between 10 and 15,000 MT.

As provided by the Accession Agreement, Bulgaria has the right to
produce a total of 203,500 MT of sugar of which 4,320 MT is A Quota, and
432 MT is B Quota (both from sugar beet) and 198,748 MT from cane sugar.
From MY 2007/08 onwards, total quota for isoglucose is 78,153 MT. Post
reports that the only producer and processor of sugar beet recently
announced that it will not plant anything this year, and will not
process any beet into sugar.

[Romania]{.underline}

The area planted with sugar beet in 2007 declined by 44 percent, from
40,000 Ha to 22,300 Ha, as a result of sugar quota implementation. The
output decreased only by 30 percent reaching 809,000 MT of sugar beet,
due to better yields. The area is expected to slightly increase to
25,000 Ha for MY 2008/09 from 22,300 Ha in the previous year.

The production cost of sugar beet is 30 to 40 percent higher than that
of sugar cane, resulting in significant pressure on profitability for
sugar beet processors.

Romania obtained a quota of 452,713 MT, broken down as follows:

-   white sugar obtained from sugar beet: 109,164 MT

> (reduced for MY 2007/08 by 13.5 percent, to 94,426 MT)

-   white sugar obtained from raw sugar: 329,636 MT

-   isoglucose: 13,913 MT

The first quota was distributed between 4 processing plants (two of
which exclusively use sugar beet), while the second was distributed
between 7 processing plants. The isoglucose quota is shared by 2 plants.

Total domestic sugar consumption is estimated at 550,000 MT, not
entirely covered by quota. As there are no bioethanol plants in Romania
that use sugar as feedstock, production goes exclusively for food
purpose.

Raw sugar cane is almost exclusively imported from Brazil. Imports
reached 278,000 MT during 2007 (eleven months for CY), 36 percent lower
than the previous year. Raw sugar beet imports are insignificant (2,135
MT from Hungary).

White sugar imports increased last year (eleven months) by 24 percent
reaching 83,000 MT mainly coming from Hungary (48,157 MT), Bulgaria
(18,888 MT), Serbia, Czech Republic and Austria.

Romania exported a smaller amount of white sugar (4,916 MT) last year
compared to the year before (21,275 MT) according to eleven months trade
data.

During MY 2007/08, farmers received a subsidy of around 8 Euro/MT (state
aid) of sugar beet delivered to processors. In the same MY, growers will
receive 320 Euro/Ha, 50.55 Euro/Ha of which is direct support, 192.08
Euro/Ha is national payment and 77.20 Euro/Ha sugar beet scheme. Payment
is scheduled to begin in April 2008.

[Czech Republic]{.underline}

After Eastern Sugar Czech Republic decided to leave the Czech Republic
in 2006 and close down its three refineries, Czech Republic's sugar
quota decreased in MY 2007/08 by 102,473 MT to 372,459 MT.

While total beet production has been declining from 3.5 million MT in
2004/05 to around 3 million MT in 2006/07 and 2007/08, agronomic yield
has been increasing from 50 MT/ha to 55 MT/ha. Beet production for sugar
is declining (lower quota) while beet production for ethanol is rising.
MY 2007/08 harvest was negatively influenced by dry weather.

Of 54 sugar refineries that were in the Czech Republic in 1989, only 7
refineries remain. The largest remaining refinery is "Cukrovary a
lihovary TTD", which has half of the national sugar quota production and
is the only producer of ethanol.

At the time of writing, the Ministry of Agriculture is not providing
estimates for MY 2008/09 as contracts are being signed.

The Czech Republic did not agree with the EU's sugar reform,
particularly the proposal concerning producers' rights to return quota.

80% of total beet production is used for sugar with the remaining 20%
destined for used for ethanol. Czech Republic's annual sugar consumption
is between 400,000 and 450,000 MT.

The Czech Republic is a net sugar exporter, but sugar imports are rising
as a result of lower quota. In MY 2006/07 the Czech Republic imported
93,000 MT of sugar, from which 87% originated in the EU, mainly from
Slovakia. Import of sugar in products was three times higher than import
of sugar in state and reached over 270,000 MT.

In MY 2006/07 the Czech Republic exported 171,000 MT of sugar, almost
all of which went to the EU market, most again to Slovakia. 500 MT was
exported to Switzerland. Around 140,000 MT of sugar was exported in
products in MY 2006/07.

[Poland]{.underline}

Despite a 5.6 percent sugar beet acreage reduction in 2007, beet
production was almost 13 percent higher than one year ago due to
favorable growing conditions and record beet agronomic yields.  Assuming
lower sugar content in beets, estimated MY 2007/08 sugar production is
1.96 million MT of raw value sugar, which equates to around 325,000 MT
over Poland's production limit for MY 2007/08.  That over-production
will be used partly for non-food use and a significant portion will be
counted against the MY 2008/09 quota production.  The industry will
consequently have to contract less sugar beet for MY 2008/09. 

Based on information from the Sugar Beet Producers Association, sugar
beet supplies for MY 2008/09 will be reduced by some 20 percent as a
function of low beet prices for the new season. Agricultural Market
Agency information indicates that all sugar producers in Poland applied
for appropriate quota reductions until the end of January 2008, 11 of
which referred to the quota reduction and no machinery liquidation, with
6 referring to quota reduction and machinery liquidation.  Total
industry applications for quota reduction (with compensation from the
restructuring fund) were in excess of over 260,000 MT raw sugar (240,000
MT white sugar).

Sugar food consumption in Poland has been fairly stable in recent years
and no significant changes are predicted.  Although there was
significant speculation on ethanol production from extra sugar produced,
to date no facility has been reported.

[Hungary]{.underline}

Hungary's raw sugar production in MY 2007/08 is estimated at 260,000 MT.
The low production is a combined result of the decreased beet area
(returned quotas), and the drought. The volume has been produced by four
sugar mills.

By the start of MY 2008/09 all but one sugar factory will be closed and
the corresponding quotas have been given back. At the time of writing,
when the sugar beet planting season is beginning, it is unclear whether
or not the single remaining mill, (Kaposvar, Magyar Cukor - Agrana) will
contract and purchase sufficient beet for its 105,000 MT sugar quota.
Post's (raw) sugar production estimate for MY 2008/09 is 100,000 MT.

Hungary's annual sugar consumption is around 330,000 MT. Bioethanol use
is negligible as only one distillery (some 37,000 MT alcohol capacity)
uses molasses as opposed to sugar.

In MY 2006/07, Hungary remained a net exporter of sugar (38,000 MT
export surplus) and intervention stocks were 100,000 MT in January 2008.

Poor crop and reduced production potential in MY 2007/08 lead to an
import surplus of around 70,000 MT (typically from the EU) in 2008.
Import requirements are likely to increase to 220,000 MT in MY 2008/09
as a function of low domestic production which is the outcome of the
reform. More specifically, the impact of the reform in Hungary is
characterized as follows:

-   For many beet producers the reduced minimum price is too low coupled
    with climatic conditions in Hungary, production cost levels and an
    overvalued national currency.

-   At the same time, income levels (per hectare) of alternative crops
    (oilseeds, corn) are much higher.

-   The bonuses for returned quotas and ceased beet production are
    appealing for both the beet producers and the sugar industry.

[Slovakia]{.underline}

In MY 2006/07, sugar beet had been processed in three factories, namely
Trenčianska Teplá, Sereď and Dunajská Streda. Their total daily output
was 14,444 MT of sugar beet (Trenčianska Teplá 5 400 MT, Dunajská Streda
5 744 MT and Sereď 3 300 MT). During this period, the number of
producers decreased by 33 growers or 8.5 percent to 354.

The Statistical Office of the Slovak Republic reports that 1.37 million
MT of beet was produced from 27,700 Ha with an average yield of 49.46
MT/Ha. Slovak Sugar Union data reports a production figure of 1.34 MT of
beet with a sugar content of 17.2 percent from 27,604 Ha.

Total sugar production reached 205,151 MT. Production of polarization
and white sugar reached 8,32 MT/Ha and 7,43 MT/Ha respectively. Article
5 of Council Regulation (EC) No 318/2006 from 20 February 2006 provides,
for MY 2006/07 the minimal sugar beet price was established at the level
of 32,86 Euro/MT with the standard quality and sugar beet content of 16
percent.

In MY 2006/07, the European Commission established the measure on
preventive withdrawal of sugar from the market. Pursuant to Regulation
(EC) No 493/2006, the withdrawal coefficient (0,8833) out of sugar basic
quota (207,432 MT) was determined for the Slovak Republic. Additionally,
the guaranteed volume within the scope of quota was decreased to
183,224.7 MT.

As Slovenské cukrovary Ltd. purchased an additional quota of 2,732 MT,
the amount was increased to 185,957 MT of white sugar. In October 2006,
Eastern Sugar Slovakia, Inc. used the possibility to complete its
production from MY 2007/08 within the framework of the restructuring
program . This decision decreases the Slovakian domestic quota by 70,133
MT from MY 2007/08.

In 2007, two companies (Považský cukor, Inc. and Slovenské cukrovary,
Ltd.) requested allocation of the rest of additional quota (7,268 MT)
from MY 2007/08. Consequently, the sugar quota was settled at 147, 299
MT from that period.

The Statistical Office of the Slovak Republic reports per capita sugar
consumption in 2005 to be the highest since 1998, and had increased by
12.6 percent to 34.0 Kg in comparison with the previous year. In 2006, a
decrease of sugar consumption by 6.8 percent is expected. Apart from
'total patisseries', consumption of all observed products with sugar
content has increased.

Additionally, consumption of bee honey (that has remained at the level
of 0,4 to 0,5 Kg for over 10 years) has increased to 0,7 Kg.

There was a positive balance in Slovak foreign trade in the sugar sector
in MY 2006/07. However, value decreased by almost 25 percent. Sugar
imports increased by 81.5 percent in comparison with the previous year.
Slovakia imported 84,000 MT of sugar and exports decreased by 21,
percent to 173,000 MT.

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E-mail: AgUSEUBrussels@usda.gov

Related reports from USEU Brussels:

+--------------+------------------------------------+-----------------+
| **Report     | **Title**                          | **Date          |
| Number**     |                                    | Released**      |
+--------------+------------------------------------+-----------------+
| E47014       | # EU Agrees to Mand                | 02/26/2007      |
|              | atory 2007/08 Sugar Production Cut |                 |
+--------------+------------------------------------+-----------------+
| E47029       | Sugar Annual                       | 04/10/2007      |
+--------------+------------------------------------+-----------------+
| E47087       | EU Agriculture Council Backs       | 09/27/2007      |
|              | Changes in Sugar Restructuring     |                 |
|              | Scheme                             |                 |
+--------------+------------------------------------+-----------------+
| E47097       | Sugar Semi-Annul                   | 10/04/2007      |
+--------------+------------------------------------+-----------------+
| These        |                                    |                 |
| reports can  |                                    |                 |
| be accessed  |                                    |                 |
| through our  |                                    |                 |
| website      |                                    |                 |
| <http://u    |                                    |                 |
| seu.usmissio |                                    |                 |
| n.gov/agri/> |                                    |                 |
| or through   |                                    |                 |
| the FAS      |                                    |                 |
| website      |                                    |                 |
| <http://ww   |                                    |                 |
| w.fas.usda.g |                                    |                 |
| ov/scriptsw/ |                                    |                 |
| attacherep/d |                                    |                 |
| efault.asp>. |                                    |                 |
+--------------+------------------------------------+-----------------+