After almost 50 years, the curtain will fall for the European sugar quota on Sunday 1 October (tomorrow). EU Commissioner Phil Hogan speaks in a press statement of an important milestone for the sugar sector and a marker for the direction of the common agricultural policy.
Producers, according to EU politician Phil Hogan, will have the opportunity to expand their trade in the global market and with the right EC policies they can achieve success. Hogan is referring to the Sugar Market Observatory, which provides timely market information. “I am convinced that the industry has positioned itself to take advantage of the opportunities offered by a quota-free market.”
Support out cap
The sugar sector can continue to rely on various measures from the common agricultural policy to deal with unexpected market disturbances. These include the maintained EU import tariff, the option of private storage and crisis measures that the Commission can initiate in the event of a serious market crisis accompanied by sharp increases or decreases in market prices. There is also income support for farmers in the form of direct payments.
Market transparency improved
The possibility of collective bargaining on contract terms between European beet growers and sugar processors will continue to exist in the quota-free era. The Commission has improved market transparency in view of the free market.
The new Sugar Market Observatory provides short-term analysis and statistics on the sugar market as well as analytics and forecasts to help farmers and processors manage their business more effectively.
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