Fabian Demicoli

EU Sugar Imports

Since 2006, the European sugar market regime has been undergoing a reform process. The existing legal framework foresees that the quota system, once a cornerstone of European agricultural market regimes, will stay in place until 2015. In other important sectors in the EU for example cereals, quota are abolished or being phased out such as for example milk.

 

The basic coordinates for the sugar market have changed as well. The EU, once a leading sugar exporter, has become a net importer. This was expressly intended by EU policy makers in 2006. Today, some 15% of the European sugar demand are covered by imports. In the current market year, however, the EU sugar market is determined by a shortage of supply and high price levels. For many companies, including the processing sector, this situation has become a point of major, for some even fundamental, concern.

But still, the European sugar beet production continues to be encouraged by the existing quota and extremely high import tariffs.

Against this background, even more than about price increases, importers and retailers are concerned about the risk of a possible shortage of supply in 2012.

Members are invited to submit any comments or additional information to EuroCommerce. Depending on the echo, EuroCommerce might consider further lobbying action as appropriate.

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