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ASR Group in 10-year deal to buy non-genetically modified sugar from Raizen

Reference: Reuters

NEW YORK, Aug 3 (Reuters) - ASR Group, the world's largest sugar refiner, has agreed to a 10-year deal to buy millions of tonnes of non-genetically modified (GMO-free) raw cane sugar from Brazil's Raizen (RAIZ4.SA), according to both companies.

This is the world's first large-scale deal for GMO-free raw sugar and it comes as several sugar producers in Brazil are starting planting of genetically modified (GMO) sugarcane varieties, seeking to reduce production costs. read more

U.S.-based ASR Group agreed to buy 1.2 million tonnes of certified GMO-free raw sugar from Raizen for the next 10 years.

The companies said the full product cycle would be segregated, from planting to processing and transportation, including at the sugar terminal at Paranagua port and aboard ships.

Financial details were not disclosed, but the companies said there was a premium over market prices for raw sugar to cover costs associated with the system.

"GMO-free food is a big issue in Europe, the United States, and we came to the conclusion that we needed a large volume of sustainable, GMO-free cane sugar," Alan Wood, ASR group vice-president for global sugars, told Reuters.

"This deal puts us in a good position to meet this increasing demand from consumers, including food and beverage industries," said Wood, whose company sells popular sugar brands such as Tate & Lyle in Britain and Domino in the U.S... Read More