September 18, 2008

Tate & Lyle Future Sweet

FOOD producer Tate & Lyle has said it is confident the group will make progress this year, despite increasingly volatile global economic conditions.

In a statement published this morning, the company, the food and industrial ingredients company said its EU sugar business was operating in a "very difficult market".

It said: "We remain confident that, during the second half of the year, market equilibrium between supply and demand for EU sugar will be restored, which should lead to progressively firmer refining margins."

It revealed that gas prices in the UK were higher than the company had expected, and said the increased volatility in commodity prices, energy costs and exchange rates made it difficult to predict how well it would perform.

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