1. Cane refiners – what is fair competition? July 2012

2. Competitiveness of cane and beet - on an unregulated basis Cost of refined sugar from cane around 10% higher than beet – Because of recent sharp rises in raw cane sugar price – We are not asking for any special help for cane refiners to correct this – It is our job as cane refiners to find a way to compete despite this market handicap – Added value through differentiation Cane refiners would have fair terms of competition in an unregulated market Source: LMC (all beet data and cane processing cost), Tate & Lyle Sugars (cane raw material cost)

3. Competitiveness of cane and beet - on an unregulated basis Cost of refined sugar from cane around 10% higher than beet – Relative cost of the 2 raw materials varies as market conditions change – € to $ exchange rate also impacts – It is our job as cane refiners to manage this market risk – We are not asking for any special help for cane refiners to do that Cane refiners would have fair terms of competition in an unregulated market Source: LMC (all beet data and cane processing cost), Tate & Lyle Sugars (cane raw material cost)

4. Competitiveness of cane and beet - impact of European Commission actions in 2011-2012 Cane refiners face €179 of extra unfair costs as a result of EU Commission actions – Operating at 60% of capacity adds €20 to costs – Paying €292 tax for new supply versus €133 new beet supply cost This is a dramatic, unfair and unsustainable undermining of the competitive position of cane refiners This is solely the result of these EU Commission actions Cane refiners are prepared to compete – but can only do so on a fair and level playing field Source: LMC (all beet data and cane processing cost), Tate & Lyle Sugars (cane raw material cost and undercapacity processing cost), European Commission (beet and cane EU Commission tax) NOTE: USING CURRENT RAW COST

5. ESRA - Issues until 2015 European Commission should allow the 3.5 million tonnes of duty free cane sugar they forecast would arrive If it cannot come from EPA and EBA countries then it should be allowed from other suppliers The current mix of solutions is unfair Fixed fee of €85 then €211 for beets –average €133 WSE Auction costing €252-€313 for raw cane –average €292 WSE It will kill cane refineries who face Cost of running at 60% capacity Unfair cost of tax and new supply