Proceedings of the 34th International Academic Conference, Florence

POLISH SUGAR SECTOR AFTER ABOLISHING SUGAR PRODUCTION QUOTAS

KRZYSZTOF HRYSZKO, PIOTR SZAJNER

Abstract:

The sugar market was one of the most regulated markets in the agri-food sector in the EU, The basis of said regulation was an administrative restriction of supply (production quotas), protectionist foreign trade policies, a minimum procurement price for sugar beet and the reference price of sugar. The sugar sector in Poland has a long tradition and is of great economic social and environmental significance, as well as an important element of the food security policy. Sugar beets are characterized by the greatest productivity per area unit, and by-products are used as fodder or for energy production purposes. The sugar industry is a strategic part of the food economy. Sugar remains the main sweetener, despite the development of the starch syrup and low-calorific sweetener markets. The social importance of the sector results from the fact that sugar beet production remains the source of income for planters, and the sugar industry and numerous service providers create both national income and jobs. Sugar beet cultivations are a crucial element of the sustainable development of agriculture as they increase biodiversity and maintain agricultural land in good condition. Abolishing production quotas will result in big changes in the sugar sector, which in turn will have multiple economic, social and environmental effects. Accounting for international conditions, including competition from cane sugar and obligations resulting from trade contracts, it is assessed that the sugar balance may undergo significant changes. Under the changing external conditions, the foreign trade policies and international economic relations will have a very significant impact on the situation of the domestic sugar sector. Situational development in the sugar sector should include two basic elements: changes in the EU market after the market regulations reform and changes in the economic situation on the international market, and foreign trade conditions. The significant economic social and environmental importance indicates that future policy with regards to the sector should include solutions which will allow to maintain sugar beet cultivation and sugar production at least in the most effective and competitive regions of the country.

Keywords: sugar beets, sugar, sugar sector, market, market regulations, competition

DOI: 10.20472/IAC.2017.034.021

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