Cautious Approach Needed Before Any Decision on EU Out-of-Quota Sugar Exports Is Taken

SAO PAULO, January 27 - Following the announcement by the European Commission to propose
additional out-of-quota sugar exports for an amount of 500,000 tonnes, the
Brazilian Sugarcane Industry Association (UNICA) reiterates its call on the
Commission for a cautious approach, taking into consideration all interests
at stake and potential dramatic consequences.

According to UNICA, the European Commission is sending wrong signals to
EU farmers, who are being incentivised to more sowings ahead of the next
campaign, although current higher sugar prices on the global market are
merely conjectural. "This short-sighted policy is potentially damaging for
the EU sugar market as EU farmers will be left with additional surpluses to
be exported; this when global prices return below the EU price," warned
Marcos Jank, President and CEO.

While it acknowledges the exceptional character of the circumstances
leading to the Commission's announcement, UNICA calls on the European
Commission to strictly limit the additional out-of-quota sugar exports to the
2009/2010 marketing year and to explicitly rule out any precedent the
decision would set for the following marketing years. Finally, UNICA
reiterates its call for engaging the parties to the EC-Export subsidies on
the sugar WTO panel, Australia, Brazil and Thailand. "We understand that the
conformity of the Commission's decision with its international obligations is
open to interpretation. The draft Regulation should therefore be submitted to
the WTO for a conformity assessment prior to its adoption," concluded Marcos
Jank.

ABOUT UNICA

The Brazilian Sugarcane Industry Association (UNICA) represents the top
producers of sugar and ethanol in the country's South-Central region, the
heart of the sugarcane industry. With over 120 member companies, UNICA
provides information on the sector, including statistics and specific
research, and enters into dialogue with stakeholders in support of Brazil's
sugarcane, ethanol and bioelectricity sectors.

    FOR MORE INFORMATION
    CDN - Corporate Communications
    Rosa Webster - +55-11-3643-2707 / rosa.webster@cdn.com.br
    Mariane dos Santos - +55-11-3643-2730 / mariane.santos@cdn.com.br

Rosa Webster, +55-11-3643-2707, rosa.webster at cdn.com.br, or Mariane dos Santos, +55-11-3643-2730, mariane.santos at cdn.com.br, both of CDN - Corporate Communications, for UNICA