Tate & Lyle has sold its international sugar trading operations to Bunge Ltd for an undisclosed amount. It represents another step in the company’s strategy of reducing its exposure to volatile commodity markets.

The international sugar trading business made an operating profit of £2 million (€2.5m) in the two months to 31 May 2008, an operating loss of £9 million (€11.3m) in the year ended 31 March 2008, and an operating profit of £22 million (€27.7m) in the year ended 31 March 2007.
Iain Ferguson, chief executive of Tate & Lyle, says: “Our international sugar trading operation is a good business. However, the recent sale of our sugar businesses in the Americas and the restrictions on exports from our EU cane sugar refineries, which were implemented as part of the EU Sugar Regime reforms, have reduced the value of international sugar trading.”
The disposal will allow Tate & Lyle Sugars to concentrate on its core sugar refining
operations. In conjunction with the sale, the raw cane sugar sourcing team in the Group’s EU sugar refining operations
is being strengthened to ensure it has the appropriate resources going forward to support its key suppliers.
The sale excludes Tate & Lyle’s shareholding in its subsidiary in Israel, Tate & Lyle Gadot Manufacturing, and the minority interests in sugar facilities in Saudi Arabia, Egypt and Thailand.