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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.

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.