19 June 2008 – UK sugar and sweeteners group Tate & Lyle's shares fell to their lowest in four years after analysts warned about the possible impact of record high corn prices on the company's business.
Tate & Lyle produces corn starch which it supplies to various food and drink companies. Experts believe the group will find it hard to absorb soaring corn prices by passing them on to its customers.
Corn prices have increased by 25% over the last six weeks because of floods in top corn-producing US State Iowa. Analysts predict that Tate & Lyle’s corn costs could double by 2010.
The company's shares fell 22.25% to 402.25p on Wednesday and dropped a further 2% to 394.25p on Thursday.
(Source: Tate & Lyle plc)