EU study: After rollercoaster period, sugar sector on the way to balance

The European Commission’s DG Agriculture published a study entitled “Study on the adaptation strategies of the sugar supply chain after the end of the sugar quotas.” The 267-page analysis prepared for the Commission by Italian agri-food intelligence company Areté and IHS Markit aims at “a sound and comprehensive analysis on the EU sugar sector’s capacity to adapt to its post-quota environment, as well as on its ability to respond to varying market and production conditions”. The study investigates in particular the consequences for the EU sugar sector of the end of quotas assessing whether and to what extent the existing adaptation strategies implemented in the sector ensure an appropriate level of resilience against current and future threats, also considering the context of the international sugar market and its developments.

We publish here a compilation of the main data and the conclusions stated by the authors. At the end, we also include the critical statements of two important players of the German sugar industry.

The main themes of the study are:

– The structure and competitiveness of the EU sugar sector and the organizational arrangements its supply chain.

– The threats to which the EU sugar sector is confronted; the existing risk management strategies, their use and effectiveness.

– The institutional setting of the market and EU policy instruments available for the sugar sector.