Future Policy Options for EU Beet Production : Quotas - Yes or No ?

Abolishment of EU sugar quotas will lead to lower sugar and sugar beet prices in the EU, leading to lower margins for farms. At the same time, expansion of sugar beet growing and processing in a quota-free situation can decrease fixed cost per ha of sugar beet and per kg of sugar, making both sugar beet growing and processing more efficient. Besides, lower sugar price levels will make Europe a more attractive continent for investments by sugar-based industries.