Structural transformations in the Polish sugar industry

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.

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.


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.


Author(s):  
Agnieszka Judzińska

The aim of the paper was to present the most important changes that took place in the Polish sugar industry in the years 2010-2016. Particular attention was paid to the structural changes, the economic and financial condition of the sector, as well as trade results. The domestic sugar industry is highly concentrated and is oligopolistic. Following a temporary fall in the years 2013-2015, in 2016 the revenue and significant improvement in financial ratios were recorded. The good economic situation of the sector and re-growth of investment activity are a positive aspect before the forthcoming changes in the sugar market regulation system.


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.


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.


Author(s):  
Jean-Luc Rouvière ◽  
Alain Bourret

The possible structural transformations during the sample preparations and the sample observations are important issues in electron microscopy. Several publications of High Resolution Electron Microscopy (HREM) have reported that structural transformations and evaporation of the thin parts of a specimen could happen in the microscope. Diffusion and preferential etchings could also occur during the sample preparation.Here we report a structural transformation of a germanium Σ=13 (510) [001] tilt grain boundary that occurred in a medium-voltage electron microscopy (JEOL 400KV).Among the different (001) tilt grain boundaries whose atomic structures were entirely determined by High Resolution Electron Microscopy (Σ = 5(310), Σ = 13 (320), Σ = 13 (510), Σ = 65 (1130), Σ = 25 (710) and Σ = 41 (910), the Σ = 13 (510) interface is the most interesting. It exhibits two kinds of structures. One of them, the M-structure, has tetracoordinated covalent bonds and is periodic (fig. 1). The other, the U-structure, is also tetracoordinated but is not strictly periodic (fig. 2). It is composed of a periodically repeated constant part that separates variable cores where some atoms can have several stable positions. The M-structure has a mirror glide symmetry. At Scherzer defocus, its HREM images have characteristic groups of three big white dots that are distributed on alternatively facing right and left arcs (fig. 1). The (001) projection of the U-structure has an apparent mirror symmetry, the portions of good coincidence zones (“perfect crystal structure”) regularly separate the variable cores regions (fig. 2).


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):  
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.


2010 ◽  
pp. 82-87 ◽  
Author(s):  
Peter W. Rein

The production of bioethanol and biodiesel and the prospect of its importation into the EU have lead to various initiatives to ensure that only biofuels which are produced in a sustainable way are acceptable. Standards which are set to define the important sustainability issues are in various stages of development. The processes involved are of interest to the sugar industry, as both sugarcane and sugarbeet have enormous potential as feedstocks for bioethanol. The Better Sugarcane Initiative is underway to define standards for the sustainable production of both sugar and bioethanol from sugarcane. This paper attempts to discuss the major issues surrounding sustainable production of sugar and ethanol, outlining the processes involved in setting and maintaining sustainability standards. This is discussed in particular with respect to the development of the Better Sugarcane Initiative and looks forward to the implications for all stakeholders.


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