EU to abolish sugar quotas – Increased production and export expected
The system of sugar quotas was implemented in 1968 with the first rules of the Common Agricultural Policy (CAP), as a means of supporting producers by setting the level far above the world market price. The decision on abolishing sugar quotas was reached by the European Parliament and the member-states as part of the CAP reform from 2013, following a thorough reform process initiated in 2006.
The average price of sugar in the EU has recovered since late 2016 to around EUR 500 per ton and has been stable for the past few months. Thanks to this, the sector was able to prepare for this moment, and the productivity has considerably improved in the past years.
– I am confident that, since the end date for sugar quotas was decided, the industry has positioned itself well to benefit from the opportunities which the end of sugar quotas presents – stated Phil Hogan, Commissioner for Agriculture and Rural Development.
The abolition of the quota system enables the producers to adjust their production to actual circumstances in the market and to explore new exporting markets. Furthermore, a new Sugar Market Observatory provides short-term analysis and statistics about the sugar market, as well as analysis and outlook to help farmers and processors manage their businesses more effectively.
– The end of the quota system represents an important turning point for our European sugar sector and marks another important step in the market orientation of the Common Agricultural Policy. Producers will now have the opportunity to expand their trade on global markets, and with the right policy supports from the European Commission – such as the Sugar Market Observatory which provides timely and relevant market information – they should have every chance of success – Hogan said.
Following the abolition of quotas, the possibility of collective negotiations on the value sharing terms in the contracts between EU beet producers and sugar processors remains.
The EU is the leading world producer of sugar beet at close to 50% of the total production. However, sugar beet makes up only 20% of the global production of sugar. The remaining 80% is produced from sugarcane. The EU also has a special processing industry which processes imported sugarcane.
Most Important News
06.04.2024. | Agriculture
Preconditions for Placement of Fresh Blueberries and Dried Plums in Chinese Market Secured
16.04.2024. | News
Jovan Ciric, Leasing Director Retail MPC Properties – MPC Echo symbolizes our desire for good ideas and innovative endeavors to spread freely and bring about positive changes
16.04.2024. | News
10.04.2024. | Finance, IT, Telecommunications, Tourism, Sports, Culture
Creative Industry – What This Serbian Economy Sector Worth EUR 2 Billion Encompasses
10.04.2024. | Finance, IT, Telecommunications, Tourism, Sports, Culture
17.04.2024. | Industry, Construction, Transport, Finance
Feka Automotive to build energy-efficient production facility – EBRD approves EUR 15 million
17.04.2024. | Industry, Construction, Transport, Finance
16.04.2024. | News
Economy Fair in Mostar opens – 26 companies from Serbia exhibiting
16.04.2024. | News
16.04.2024. | News
Polish chain Zabka to come to Serbia?
16.04.2024. | News