According to data of the National Bureau of Statistics, the growth of food with sugar content, except for confectionary, was between 13.7-33.8% till the end of June 2007. The output of confectionary was 463,000 tons from January to June, up 20.7% from same period 2006; cakes, 284,000 tons, up 23.1% from same period 2006; biscuits, 914,000 tons, up 18.9% from same period 2006; fast frozen staple food, 843,000 tons, up 34.4% from same period 2006; dairy products, 8.522 million tons, up 23.7% from same period 2006; canned food, 2.182 million tons, up 33.8% from same period 2006; carbonated drinks, 5.126 million tons, up 16.4% from same period 2006; fruit juices and drinks, 5.107 million tons, up 17.2% from same period 2006; frozen beverage, 1,046,000 tons, up 13.7% from same period 2006.

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PREFACE 4

NEWS FLASH 4

1065.25 TONS SACCHARIN SOLD TO DOMESTIC MARKET TILL END OF MAY, UP BY 3.66% FROM SAME PERIOD LAST YEAR 4

SUGAR IMPORT AND EXPORT VIA DIFFERENT METHODS TILL END OF MAY 4

GROWING PRODUCTION OF FOOD WITH SUGAR CONTENT FROM JANUARY TO JUNE 2007 5

NEWS & ANALYSIS 5

11.9919 MILLION TONS SUGAR PRODUCTION TILL END OF JUNE 2007, 8.9273 MILLION TONS HAD BEEN SOLD 5

IMPACT ON THE MARKET FROM GOVERNMENT RESERVE 6

NOTICEABLE GROWTH OF SUGAR CONSUMPTION IN 2006/07 CAMPAIGN, PRODUCTION TO MEET DEMAND 7

COMPARISON BETWEEN DOMESTIC PRICE AND INTERNATIONAL PRICE IN 2007 8

PRICE TREND 10

IMPORT&EXPORT 13

SUGAR IMPORT FELL SHARPLY BUT EXPORT ROSE IN JUNE 2007 OVER SAME PERIOD 2006 13

ABOUT BOABC 16