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End of European sugar quota system in 2017

27 June 2013
The consultation between the Council of Ministers, the European Parliament and the European Commission has resulted in an agreement about the common agricultural policy and therefore also about the sugar market regulation. The present market regulation which runs to 2015 will be extended by two years to the end of September 2017. Thereafter, the sugar quota system will end, as well as the minimum price for sugar beets. The distinction between quota sugar and surplus sugar will disappear. From that time, each country and each sugar company in the EU can produce and market an unlimited amount of sugar. The combination of greater European production and more extensive export possibilities are expected to lead to more fluctuations in the price of sugar and of sugar beets.
The decision means that sugar beets which are supplied in 2017 will no longer fall under the quota system. In the past few years, the cooperative has invested in increasing the factory capacity and has made plans to further expand the capacity. For the coming years, we predict a limited growth in the sales of sugar; from 2017, further growth will be possible. Agro-industrial group Cosun seeks the expansion of the production for the existing members and wishes to give them in particular the chance to also grow. It has not yet been established exactly how this system will be interpreted. The elaboration will take place in consultation with the council of members of Cosun.