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The European Commission is planning to establish 'nutrient profiles', that is, maximum amounts for nutrients such as fat, sugar and/or salt in foods, above which the use of nutrition or health claims would be restricted or forbidden. For example, breakfast cereals exceeding a sugar limit could no longer advertise their fibre or vitamin content. The Commission was already tasked with setting nutrient profiles to restrict the promotion of food high in fat, sugar and/or salt under the Nutrition and ...

The sugar sector in the European Union provides a source of income for many farmers and sugar manufacturers. The EU is the world's top producer of sugar beet and one of the main sugar manufacturers' and consumer markets. The EU sugar market had been one of the most heavily regulated markets in the agri-food sector for 50 years, until the quota regime ended on 30 September 2017, thereby introducing a new scenario for this segment of the economy. The sector faces challenges on a number of fronts. The ...

The EU's sugar sector provides a source of income for many farmers and sugar manufacturers. The EU is the world's top producer of sugar beet and one of the main sugar manufacturers' and consumers' markets. The EU sugar market had been one of the most heavily regulated markets in the agri-food sector for 50 years, until the quota regime ended on 30 September 2017, thereby introducing a new scenario for this segment of the economy.

The liberalisation of the sugar market in the EU will bring about changes in the sugar sector. Elimination of production quotas and the minimum price for the purchase of sugar beet will affect competition and sugar production. Foreign trade will play a key role in the market balance. The EU market will become strongly linked to the world market. The sugar sector is of strategic importance and CAP market policy should include instruments that allow the maintenance of sugar production.

There is much debate over whether the EU should extend sugar production quotas until 2020 or abandon them, as proposed by the European Commission, and move to a freer market in 2015. This note looks at the constraints on the policy makers and the options for the future of the EU sugar policy.

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.