Isoglucose – How significant is the threat to the EU sugar industry?

2013 ◽  
pp. 770-777
Author(s):  
Yelto Zimmer
Keyword(s):  
Market Share ◽  
Sugar Industry ◽  
Quota System ◽  
Strong Incentive ◽  
Major Market ◽  
The Us ◽  
Sugar Market ◽  
Extreme Scenario ◽  
Competitive Product ◽  
The Eu

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.

Concentration in the Czech and Polish sugar markets

2020 ◽  
pp. 224-233
Author(s):  
Andrzej Hornowski ◽  
Karolina Pawlak ◽  
Luboš Smutka ◽  
Pavel Kotyza
Keyword(s):  
Value Chain ◽  
Structural Changes ◽  
Central And Eastern Europe ◽  
Sugar Industry ◽  
Rapid Development ◽  
Quota System ◽  
The Czech Republic ◽  
Sugar Market ◽  
The Eu

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.

THE EU SUGAR MARKET PROFILE AND ITS MAIN DRIVERS

2015 ◽  
Author(s):  
Lubos SMUTKA ◽  
Irena BENEŠOVÁ ◽  
Patrik ROVNÝ ◽  
Renata MATYSIK-PEJAS
Keyword(s):  
Market Failure ◽  
Current System ◽  
Quota System ◽  
Considerable Debate ◽  
Sugar Market ◽  
The Common ◽  
The One ◽  
Production Capacities ◽  
The Given ◽  
The Eu

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.

EUROPEAN UNION´S SUGAR MARKET CONCENTRATION UNDER THE SUGAR QUOTA PRODUCTION SYSTEM

2015 ◽  
Author(s):  
Ľuboš SMUTKA ◽  
Helena ŘEZBOVÁ ◽  
Patrik ROVNÝ
Keyword(s):  
United Kingdom ◽  
Quota System ◽  
Eu Member States ◽  
The United Kingdom ◽  
Sugar Market ◽  
Current Production ◽  
High Dynamic ◽  
Production Capacities ◽  
Very High ◽  
The Eu

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.

Biopesticide Summit – Regulatory Reform of Biopesticides, Virtual Conference, 6th July 2021

2021 ◽  
Vol 32 (4) ◽  
pp. 168-170
Author(s):  
Robin Blake
Keyword(s):  
Market Share ◽  
Regulatory System ◽  
Regulatory Reform ◽  
Non Profit ◽  
The Us ◽  
The Media ◽  
Virtual Conference ◽  
The Uk ◽  
Chemical Pesticides ◽  
The Eu

This virtual event was held as a follow-up to the inaugural Biopesticide Summit and Exhibition at Swansea University in July 2019, and postponed in 2020 due to the Covid-19 pandemic. Sarah Harding, Communication Director at The World BioProtection Forum (WBF) & Biopesticide Summit opened the event with a few brief words of introduction before handing over to Dr Minshad Ansari, Chairman of the WBF.<br/> Dr Ansari was delighted with the more than 150 attendees already logged into the event with over 300 registered. The WBF was created in 2019 as a non-profit organization to bring together industry and academia for innovation. Dr Ansari thanked the event's supporters – AgBio, Agri Life, Bayer, Bionema, Ecolibrium Biologicals, Koppert Biological Systems, Harry Butler Institute and Sri BioAesthetics, as well as the media partners including Outlooks on Pest Management. He reiterated the need for regulatory reform due to removal of chemical pesticides, demands for organic food, limited biopesticide products registered and a lengthy and costly biopesticide registration process (5 years in EU where there are just 60 products available vs. 2.1 years in USA and where over 200 products are already available on market). The US is clearly in a much better place; in Europe, it is too expensive for SMEs and little progress has been made despite the work of the IBMA (International Biocontrol Manufacturers Association) and others. With respect to the biopesticides market share (value) by region, Europe has 27.7% market share (21.3% CAGR) and yet within UK, the CAGR is limited (unlike other European countries) – there are few products available in the market compared to chemical pesticides. The current biopesticide regulation is complex and not fit for purpose (compare 60 vs 200). Industry is facing a serious problem with pest control following the removal of some chemical pesticides, e.g.European cranefly which has caused many problems to the turf industry and has been impacted by the removal of chlorpyrifos. However, Brexit provides opportunities in the UK through government plans to "Build Back Better" by supporting Green Tech. At the EU level, the EU has committed to reducing use of pesticides by 50% (equating to 505 products) by 2030 so there are opportunities here for biopesticides to fill the market.<br/> Dr Ansari finished his introduction by restating the objectives for the meeting: for the speakers to present and debate the need for reform, their visions for a successful regulatory system, and how the WBF is working towards process reform in UK biopesticide regulation.

scholarly journals Wpływ regulacji rynku na funkcjonowanie sektora cukrowniczego w Polsce

2014 ◽  
pp. 127-141 ◽  
Author(s):  
Michał Pietrzak ◽  
Marcin Mucha
Keyword(s):  
European Union ◽  
European Commission ◽  
Sugar Industry ◽  
Free Market ◽  
World Market ◽  
The European Union ◽  
Market Conditions ◽  
The World ◽  
Sugar Market ◽  
The Eu

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.

Special safeguard tariff impacts on the Brazilian sugar exports

2015 ◽  
Vol 14 (2) ◽  
pp. 70-85 ◽  
Author(s):  
Cinthia Cabral da Costa ◽  
Heloisa Lee Burnquist ◽  
Joaquim José Martins Guilhoto
Keyword(s):  
Design Methodology ◽  
The European Union ◽  
Content Type ◽  
Income Effects ◽  
Output Matrix ◽  
The Us ◽  
Sugar Trade ◽  
Sugar Market ◽  
The Eu ◽  
Sugar Exports

Purpose – This paper aims to present a critical analysis of special safeguards (SSGs) and a simulation of their effects on Brazilian sugar exports to countries such as the US and the European Union (EU) bloc. Design/methodology/approach – The first stage involved the identification of tariff lines for the EU and the US sugar imports from Brazil between 1995 and 2013. Next, notifications of World Trade Organization about SSGs were examined to identify the years when the measure was applied on the sugar trade by these countries. For the years when SSGs were applied, the values of these additional tariffs were calculated. This information was used, along with price elasticities, to obtain the effects of an increase in Brazilian sugar exports in the absence of SSG and also the overall impact on the Brazilian economy, using its input-output matrix. Findings – Results indicated that the estimated value of the direct, indirect and income effects of SSG tariffs on Brazilian sugar exports to the EU and the US markets through the period 1995 to 2013 could amount to BRL 22 billion in terms of the exporting country GDP. This suggests that this policy can be highly perverse, as it translates into lower domestic production for both, the exporting and the importing countries. This issue is relevant for discussions on the global sugar market, given the facts that it is one of the markets which have been most distorted by protectionism. Originality/value – This issue is relevant for discussions on the global sugar market, given the facts that it is one of the markets which have been most distorted by protectionism.

The Caribbean Sugar Crisis: Consequences and Challenges

1986 ◽  
Vol 28 (1) ◽  
pp. 35-58 ◽  
Author(s):  
Scott B. MacDonald ◽  
F. Joseph Demetrius
Keyword(s):  
Sugar Industry ◽  
Production Costs ◽  
Quota System ◽  
Demand And Supply ◽  
The Us ◽  
Global Demand ◽  
Cuban Sugar ◽  
The Caribbean ◽  
Political Economic

“Being in Sugar is like collecting Confederate currency”. This assessment, offered by anthropologist Sidney Mintz (1985), is shared by many sugar industry observers, insiders, and, increasingly, by many Caribbean officials. King sugar, instrumental in shaping the diverse political, economic, and social histories of the Caribbean since colonial times, confronts a seemingly intractable crisis: a severe, and sustained, disequilibrium between global demand and supply which makes export of sugar very unattractive. Except in those cases where preferential arrangements exist between producers and consumers-the Lomé Convention, the US sugar quota system, and the Soviet guaranteed purchase of Cuban sugar-world prices for sugar are at a record low, well below production costs.

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
Keyword(s):  
Sugar Beet ◽  
Economic Performance ◽  
Production Efficiency ◽  
Selection Process ◽  
Sugar Industry ◽  
Recent Past ◽  
Sugar Market ◽  
Alternative Setting ◽  
The Individual ◽  
The Eu

A&nbsp;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&nbsp;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 &euro; 200 million during 2010&ndash;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 &ldquo;Midway situation&rdquo; 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 &ldquo;Fall in Prices&rdquo; scenario until 2011 are largely similar to the situation before the accession to the EU.

scholarly journals Winner and Loser in Terms of the FTAs and the Trade War: Case Study of the Japanese Market

2021 ◽  
Author(s):  
ONUR BIYIK
Keyword(s):  
Market Share ◽  
Low Income ◽  
Negative Impact ◽  
Trade Flow ◽  
Value Added ◽  
Export Market ◽  
The Us ◽  
Trade War ◽  
Pacific Island Nations ◽  
The Eu

Abstract The US raised trade war issues under protecting national security against China in July 2018. Likewise, the trade war has spread out across other regions such as India, the EU, Canada, Mexico, Russia, and Turkey through an additional tariff on products such as steel and aluminum. Clearly, the uncertainty has shown an increase since this friction created a pessimistic environment for the future world economy and did hurt economic development. Therefore, it has had negative effects for welfare -especially those (low-income consumers) who prefer to buy cheap imported goods. Contrary to protectionism, Japan has signed new FTAs with the EU and the US. In that context, this paper quantitatively examines the Japanese new FTAs under the trade war. It employs the general equilibrium approaches to not only investigate the economic structure of each country trade flow but also address the FTAs and the impacts of the welfare and sectoral value chains of the trade war. Essentially, the paper scenarios depend on the official list of the FTAs and the trade war-related goods. As a result of the FTAs under the trade war, the new Japanese trade agreements have provided some opportunities for its market as well as targeted countries. For instance, the Japanese benefit from the EU-Japan FTA would be $4.11 billion U.S.D. and the EU would gain $768 million U.S.D. within the 15-year. Moreover, the US not only would get a huge advance but also could get back its export market share from Pacific island nations in Japan when Japan would eliminate the tariff on concerned sectors for the US goods. For example, the US and Japan would improve their welfare by $4.09 billion U.S.D. and $398 million U.S.D., respectively through the limited USA-Japan FTA. That is, the US market would comparatively earn much more than Japan. Lastly, those who participate in the FTAs would boost their GDP, welfare, and value-added (productivity). For example, not only would Japan provide some opportunities for its market and then enhance its welfare and GDP, but also the EU and the US would boost their macro variables. However, from the perspective of the other regions/countries, those regions/countries which are not in the trade deal could lose their export market share in Japan, the US, and the UE and would, therefore, have a negative impact on their GDP and welfare.

scholarly journals Some Effects of EU Sugar Reforms on Development in Africa

2021 ◽  
Vol 56 (5) ◽  
pp. 288-294
Author(s):  
Johannes Paha ◽  
Timon Sautter ◽  
Reinhard Schumacher
Keyword(s):  
South Africa ◽  
Economic Development ◽  
Adverse Effects ◽  
Development Policy ◽  
Sugar Industry ◽  
Market Reforms ◽  
African Countries ◽  
Sugar Market ◽  
European Trade ◽  
The Eu

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.

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