scholarly journals Reform of the sugar sector and its impacts on the Slovak sugar market

2012 ◽  
Vol 50 (No. 11) ◽  
pp. 502-508
Author(s):  
M. Božík ◽  
T. Izakovič

A full liberalisation of the sugar market is hardly acceptable for Slovakia, because it would significantly affect not only the economic performance and employment across different sectors, but also their production structures, particularly in the farming-intensive regions. We nonetheless believe that the reform is necessary as the sugar sector remains the last unreformed CAP sector in the EU, which puts it in a better position vis-ŕ-vis other producers and farms. On the other hand, the justified claims of producers for the compensation of losses, similarly as the claims laid during the 1992 CAP reform, would disrupt the EAGGF budgetary framework through 2013, because only the claims of Slovak sugar beet producers would amount to some € 200 million during 2010–2015. We believe that the solution and consensus lies in the combination of reforms based on the scenarios of fixed quotas and falling prices, and/or the application of the “Midway situation” after 2011. The alternative setting of quotas, based the administratively assessed production efficiency levels for the individual EU countries, would also be unacceptable for Slovakia. In the recent past, the volume of investments in the Slovak sugar industry has been considerable and the most viable sugar refineries have already emerged from the selection process. The situation in the sugar beet sector is similar and the results of the “Fall in Prices” scenario until 2011 are largely similar to the situation before the accession to the EU.

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):  
Michał Pietrzak ◽  
Marcin Mucha

In the period 1990–2013 sugar industry in Poland faced numerous legal transformations, shifting from nearly free-market conditions into a strongly regulated sector. Changes of the sugar industry regulations had a significant impact on the structure of the sugar market, companies’ actions and, as a result, on their performance. Accession to the European Union and the reform of the sugar regime conducted from 2006 to 2010 on the initiative of the European Commission involved deep restructuring and modernization of the factories, which caused growth of their productivity. However, prices of sugar in the EU and in Poland are much higher than prices on the world market.


2009 ◽  
Vol 55 (No. 2) ◽  
pp. 67-76 ◽  
Author(s):  
Z. Chrastinová ◽  
V. Burianová

The article discusses economic development of Slovak agriculture in the period after the accession of Slovakia to the EU and after adopting the CAP. It evaluates agriculture as a whole and its contribution to the national economy, as well as the economic performance of the individual legal forms of business and production sectors. The results achieved by agriculture in 2004–2007 suggest that the income within the sector (except of 2005) has improved also due to the inflow of the EU subsidies. On the other hand, despite the growing aid the production output is shrinking, wages stagnate and the employment is falling. This suggests that the CAP should be changed after 2013, especially as regards the ways of subsidy payments. Economics of the individual products are largely affected by input prices, realisation prices, as well as by the volume of direct subsidies, namely in the plant production – the subsidies for crops grown on arable land, and in animal production – the subsidies per 1 Big Cattle Unit.


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.


2021 ◽  
Vol 56 (5) ◽  
pp. 288-294
Author(s):  
Johannes Paha ◽  
Timon Sautter ◽  
Reinhard Schumacher

AbstractThe sugar industry is a major provider of jobs and income for sugar-exporting countries in Africa. The lower sugar prices that were caused by the recent liberalisation of the EU sugar market may not only jeopardise economic development in those countries, but the reforms also create difficulties for sugar-importing countries in Africa that seek to develop their sugar industries. The article analyses the effects of EU sugar market reforms on three African countries — Nigeria, South Africa and Mozambique — and provides insights into the balancing of the EU sugar policy’s intended effects against their adverse effects on European trade and development policy.


2015 ◽  
pp. 108-112
Author(s):  
Piotr Szajner

The Polish sugar industry has undergone significant transformation, including: adaptation to changing market regulations, ownership changes, structural transformation and modernisation. The sugar market has been among the most regulated food markets in the EU. During the years 2006 to 2010, market policy was reformed but its instruments strongly interfered in market mechanisms. The restructuring of the national sugar industry resulted in the sector’s evolution into an oligopoly, with the large share being held by German sugar companies. Modernisation of sugar factories contributed to improved efficiency of management which, along with the good economic situation, has determined very good financial results.


2021 ◽  
Vol 14 (3(53)) ◽  
pp. 51-61
Author(s):  
Oksana Konstantinovna Nikulina ◽  
Olga Vladimirovna Koloskova ◽  
Mariya Romanovna Yakovleva ◽  
Oleg Viktorovich Dymar

An analysis of the main production processes used in the sugar industry and ways to improve production efficiency is presented. In the sugar industry of the Republic of Belarus, an extensive way of increasing production efficiency is mainly used — improving the existing technological scheme mainly without introducing new technologies. This path carries low risks, but has natural limitations. The paper considers an alternative option for increasing the efficiency of sugar production, which is based on the use of new electromembrane technologies that complement the traditional technological scheme or partially replace its stages. The most promising and little-studied method of processing sugar beet processing products in order to increase production efficiency is electrodialysis. The aim of the study is to study the effect of electromembrane treatment of diffusion juice of various degrees of purification on improving the efficiency of sugar beet processing. The results of model tests of the electrodialysis process in real production conditions with a steadystate sugar production mode on a pilot membrane installation with a cation-anionic set of membranes are presented. The results of calculations confirming the effectiveness of the use of electromembrane processing in the technology of sugar beet processing are presented.


2021 ◽  
Vol 37 ◽  
pp. 00115
Author(s):  
Ivan Saltyk ◽  
Yulia Bolokhontseva

The world experience shows that in the 21st century, the sustainable development of the Russian beet production and sugar industry is impossible without scientific achievements. It requires low-cost resource-saving technologies that can save resources and increase the efficiency of sugar beet production. It was found that in order to increase the profitability of the sugar beet production industry, the following technologies should be used: intensive (application of herbicides); resource-saving (strip post-emergence application of herbicides); environmental protection (production of beets without herbicides, but with the use of manual labor). The intensification of sugar beet processing entails the use of new technologies that can reduce the volume of waste. The waste-free production makes it possible to strengthen the role of secondary resources as raw materials in the manufacture of various products. Secondary raw materials are used as raw materials. Structural and investment policies pursued by the government do not stimulate their processing. Therefore, beet-sugar agro-associations themselves should solve these issues. Their efforts should be aimed at ensuring the comprehensive processing of sugar beets to produce high-quality valuable food and feed products from production waste.


2019 ◽  
Vol 18 (4) ◽  
pp. 5-13
Author(s):  
Michał Borychowski ◽  
Anna Matuszczak ◽  
Sebastian Stępień

The aim of the article is to present the situation of the sugar beet and sugar market in Poland in the context of changes to the Common Agricultural Policy of the European Union, and to present prospects for the development of these markets until 2030. The authors prove that, due to the significance of these markets for the whole agricultural sector, an intervention policy regarding the sugar beet and sugar markets is crucial, which is indicated by various positive economic and environmental effects connected with the functioning of this sector. The necessity for intervention stems also from the observed volatility of production, prices and incomes. The spatial scope of the research encompasses the whole area of Poland by applying a regional approach in some analyses (voivodeships) and a comparison with the Member States of the EU. The analyses cover a period of over 20 years – from 1997/1998 to 2018/2019 – as well as a projection for 2030.


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.


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