THE EUROPEAN SUGAR MARKET IN THE GLOBAL CONTEXT AFTER SCRAPPING THE SUGAR QUOTA SYSTEM

• Main Authors: Emilia Mary Bălan, Simona Zamșa
• Format: Article
• Language: ron
• Published: Institute for World Economy 2018-04-01
• Series: Revista de Economie Mondială
• Subjects: sugar; quotes; European Union (EU); production quotas
• Online Access: http://iem.ro/rem/index.php/REM/article/view/630/710

The elimination of the European Union’s sugar quota system in September 2017, after nearly 50 years, had a significant impact on the prices of this product as a result of the market surplus. This paper analyzes the European sugar market in the global context, six months after the European Commission’s historic decision. It also highlights the evolution of sugar quotations at the London Stock Exchange between October 2017 and March 2018, compared to the similar period of the previous year, and gives an overview of the main fundamental factors of the international sugar market. After examining the European market both in terms of the abolition of the production quotas and the UK’s departure from the EU in 2019, the paper concludes that the short and medium-term sugar supply is set to increase, while the sugar quotations will follow a downward trend.