THE EU SUGAR MARKET PROFILE AND ITS MAIN DRIVERS

Author(s):  
Lubos SMUTKA ◽  
Irena BENEŠOVÁ ◽  
Patrik ROVNÝ ◽  
Renata MATYSIK-PEJAS

Sugar is one of the most important elements in human nutrition. The Common Market Organisation for sugar has been a subject of considerable debate since its establishment in 1968. The European agricultural market has been criticized for its heavy regulations and subsidization. The sugar market is one of the most regulated ones; however, this will change radically in 2017 when the current system of production quotas will end. The current EU sugar market changed is structure during the last several decades. The significant number of companies left the market and EU internal sugar market became more concentrated. The aim of this paper is presentation characteristics of sugar market with respect to the supposed market failure – reduction in competition. The analysis also identifies the main drivers and determinants of the EU especially quota sugar market. In relation to paper’s aim the following results are important. The present conditions of the European sugar market have led to market failure when nearly 75 % (10 million tonnes) of the quota is controlled by five multinational companies only. These multinational alliances (especially German and French one) are also taking control over the production capacities of their subsidiaries. In most countries, this causes serious problems as the given quota is controlled by one or two producers only. This is a significant indicator of market imperfection. The quota system cannot overcome the problem of production quotas on the one hand and the demand on the other; furthermore, it also leads to economic inefficiency. The current EU sugar market is under the control of only Sudzucker, Nordzucker, Pfeifer and Langen, Tereos and ABF.

Author(s):  
Irena Benešová ◽  
Helena Řezbová ◽  
Luboš Smutka ◽  
Karel Tomšík ◽  
Adriana Laputková

The European agricultural market has been criticized for its heavy regulations and subsidization. The sugar market is one of the most regulated ones; however, this will change radically in 2017 when the current system of production quotas will end. The aim of this paper is to present the basic characteristics of the EU quota sugar market. The analysis identifies the main drivers of EU sugar market and their position within the EU sugar market. The paper identifies especially those drivers/companies/alliances which take control over the EU sugar production realized under the quota production system. The paper also highlights the level of EU sugar market concentration and also identifies those countries and companies which are the main leaders in the sugar production area realized under the quota system. Based on the results deriving from the paper, it is possible to characterize the EU sugar market as a heavily concentrated one – nearly 75% (10 mil. tonnes) of the quota is controlled by five multinational companies only; these companies are operating more than 50% of all the available sugar plants located in the EU. These multinational alliances are also in control of the production capacities of their subsidiaries. In most countries, this causes serious problems as the given quota is controlled by one or two producers only. The EU sugar market is extremely concentrated especially if we take into consideration the location of each alliance’s headquarters. The majority of production capacities are under (the) control of especially German and French companies. These two countries are also the main beneficiaries in relation to the EU sugar production quota system.


Author(s):  
Ľuboš SMUTKA ◽  
Helena ŘEZBOVÁ ◽  
Patrik ROVNÝ

The European sugar beet quota system is in very high dynamic process in recent years. The number of sugar companies involved in this system has been constantly decreasing. The aim of this paper is to define subjects (companies/alliances), which possess the current production capacities working under the production quotas system. The paper is determining especially the level of beet sugar production quota holder system concentration using the Herfindahl-Hirschman Index. The paper provides the following findings. The European quota holder system is extremely concentrated and it is becoming more and more dominated by fewer players. Sugar quota is distributed among 19 EU-Member States. In this regard, the quota is generous, especially in relation to France, Germany, Poland and United Kingdom. In Finland, Lithuania, Hungary, Sweden, Denmark, the Netherlands, Slovakia and the United Kingdom controlled by two or even one subject (companies, alliances). There is a large discrepancy between political efforts to distribute equitable R 1308/2013-sugar quotas among states and the actual reality of those distributions. While the EU-quota holder system does not indicate an extreme concentration, an analysis according to the headquarters´ location and allocated quotas to owners of production capacities provides the evidence of extreme concentration.


2013 ◽  
pp. 770-777
Author(s):  
Yelto Zimmer

The EU is about to abolish the sugar – and the isoglucose – quota system in 2016/17. Isoglucose made from corn occupies about 50% of the US sweetener market while its market share in the EU caloric sweetener market is less than 5%. Against this background, this paper analyses the economics of isoglucose production in Europe in order to understand its competitiveness vis-à-vis sugar. Key results: (1) Isoglucose will become a rather competitive product. The EU sugar industry will have to give up about 40% of its current processing and profit margin in order to sell sugar at the same price as isoglucose will be traded; (2) Once industrial sugar users move to isoglucose, they will tend to be “hooked-in,” giving the sugar industry a strong incentive to defend its market share; and (3) Since only about 30% of the current sugar market is able to switch to isoglucose, the sugar industry has the option to practice a mixed calculation. In an extreme scenario, the industry may even opt to cross-subsidize sales. Therefore it’s not clear whether investors in isoglucose will be able to gain a major market share in Europe.


Author(s):  
Hana Zídková ◽  
Aneta Šťastná

Although, the VAT contributes significantly to tax revenues in all EU Member States, the current VAT system is vulnerable to organized fraud schemes and suffers from large scale tax evasion. The EU Member States and the European Commission are discussing new ways of VAT collection to prevent the evasive and fraudulent practices. This paper aims at the description of different VAT collection methods including their flaws and benefits that are addressed in the available literature. The conclusion is that reverse charge and split payment method are changing the character of the VAT system. The One stop shop system is lacking trust of the EU member states. Therefore, the recommendation is to improve current system by electronic means of reporting.


2020 ◽  
pp. 224-233
Author(s):  
Andrzej Hornowski ◽  
Karolina Pawlak ◽  
Luboš Smutka ◽  
Pavel Kotyza

In Central and Eastern Europe countries, the sugar industry has undergone a number of structural changes in the post-communist era, especially after accession into the EU in 2004, which implemented a sugar market reform in 2006 and then ended the sugar quota system in 2017. From a long-term perspective, EU sugar industry is undergoing a rapid development – increasing productivity, rising concentration as well as changes in market and regulated environments. For the Polish and Czech sugar industry, changes in the industry concentration can be identified by analysing the development of beet areas, quotas, beet yields, revenues and profits of the sugar industry players. This helps to better define the position of the sugar industry in the whole value chain in Poland and in the Czech Republic. It was noted that the position of the Czech sugar factories in the value chain has increased significantly. In Poland, market concentration at the level of sugar factories has remained stable.


2018 ◽  
Vol 20 (2) ◽  
pp. 116-128 ◽  
Author(s):  
Katharina Eisele

In March 2012, the European Commission adopted a Communication on the external dimension of EU social security coordination. On the one hand, the Commission explained that social security coordination between the EU and rest of the world is dealt with at a national level. On the other hand, the Commission argued that a common EU approach to social security coordination with third countries was under development. This common EU approach to social security coordination consists of a number of elements. One element relates to Association Agreements and Stabilisation and Association Agreements. These Agreements and specific Decisions taken by Association Councils (established by such Agreements) stipulate rules, which govern social security coordination for workers and their families, who move between the EU and the associated country. According to the Commission, once the Association Council Decisions are adopted, the common EU approach to social security coordination will be implemented. Six years after the publication of the 2012 European Commission Communication, questions arise as to whether or not the Association Agreements have been implemented, and the reasons for this. This article seeks to examine and contrast selected Association Agreements and Stabilisation and Association Agreements (SAAs), which provide social security rules for the nationals of the contracting parties. These will include the Ankara Agreement concluded with Turkey, the Euro-Mediterranean Agreements with Algeria, Morocco and Tunisia, and the SAAs with the Balkan countries. The aim of this article is to provide an overarching overview of the different legal positions that third-country nationals may rely on, based on their nationality, and to explore whether or not Association Agreements have been implemented in terms of social security coordination rules.


Politik ◽  
2011 ◽  
Vol 14 (4) ◽  
Author(s):  
Elspeth Guild

Refugee protection has long been an issue of great moral and legal importance among the countries in Eu- rope. European states sent representatives to participate in the drafting of the UN Convention relating to the status of refugees 1951 together with its 1967 protocol – the international commitment to refugee protection and were among the first signatories. They have also been strong supporters of the UN Agency established as guardians of the Geneva Convention – the United Nations High Commission for Refugees (UNHCR) and participate as members of the UNHCR’s Executive Committee. However, these same states, when adopting legislation on refugee protection in European Union law appear Janus faced. On the one hand, statements of commitment to refugee protection are plentiful, on the other, mechanisms adopted aim to exclude the refugee even from being heard. In this article I will examine this contradiction using the concept of governmentality as developed by Michel Foucault. Deploying the three techniques of governmentality which Foucault developed most – sovereignty, discipline and biopolitics, I seek to dissect the asylum protection system the EU is developing and make visible the underlying structure of authority and power. 


2018 ◽  
Vol 7 (4.10) ◽  
pp. 570
Author(s):  
S. Venkatesh ◽  
K. Balasubramanian

Let  and  be any two simple graphs. Then  is the graph obtained by merging a vertex of each copy of  with every attachment vertices of . Let  be the one vertex union of copies of the given caterpillar  with the common vertex as one of the penultimate vertices. If  is any caterpillar, then define . Recursively for , construct ,that is,   Here the tree  considered for attachment with  is a caterpillar, but not necessarily the same among the levels. In this paper we prove that the tree  is graceful for 


2019 ◽  
Vol 17 (2) ◽  
pp. 41-64
Author(s):  
Agnieszka Legucka

This article is devoted to the evaluation of the Eastern Partnership from the point of view of the implementation of Russia’s foreign policy. Using the research approach of constructivism, it analyses Russia’s attitude towards the EU’s Eastern Partnership project, as well as Russia’s reactions to the implementation of the EaP. Therefore, the subject of the analysis is not so much the relations of the EU and Russia with six states: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, as well as Russia’s and the EU’s narratives on its neighbourhood. This will make it possible to examine to what extent the position of one actor (EU) in relation to another (Russia) has been strengthened/weakened and, secondly, how the argumentation has promoted (the given message) in legitimizing the project as a whole, for both internal and external use. These projects were, on the one hand, Russia’s “close abroad” and, on the other, the EU’s “common neighbourhood”.


2019 ◽  
Vol 65 ◽  
pp. 09003
Author(s):  
Sergii Sardak ◽  
Svitlana Radziyevska ◽  
Ivan Us

Exports are critical for the highly open Ukrainian economy which is characterized by the large trade deficit. Since independence the major consumers of the Ukrainian products have been the CIS and the EU. Conflict with Russia led to the significant decline of the volume of Ukraine’s export commodities. The export analysis, based on the data provided by the State Statistics Service of Ukraine for the period of 2010- 2018 allowed to identify the problems and to come up with possible solutions focusing primarily on the role of the Government of Ukraine in strengthening cooperation with the EU. Firstly, it is suggested to take the institutional steps aimed at expanding and deepening the integration towards the common economic space with the EU, especially the common customs space. Secondly, to explore the opportunities of exporting goods to the countries, with which the EU has signed regional trade agreements. The third step is related to the changing role of Ukraine in the global model of the transformation of the world economy and requires the combination of close cooperation with the EU, on the one hand, and the powerful economies, on the other, thereby contributing to the formation of non-confrontational relations between East and West.


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