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The Turkish Sugar Industry in the Aftermath of EU Sugar Reform

In: Proceedings of the Conference on Globalization and Its Discontents

  • Ayla Ogus

    ()

    (Izmir University of Economics)

  • Cinar Ozen

    (Gazi University)

  • Cem Kilic

    (Gazi University)

In this paper we analyze the potential impact of the EU sugar reform on the Turkish sugar industry. Turkey’s candidacy to the EU and its strong economic links to the region imply that EU sugar policy will likely to be binding for Turkey as well in which case this will lead to a decrease in prices of Turkish sugar by no less than 55%. Turkish sugar industry will be seriously affected by the reduction in beet and sugar prices which will not be offset by possible increases in world sugar prices. Growers on contract will decline substantially. Since the reduction in growers contracted is more extensive than declines in sales, we can predict that the sugar industry will be transformed as a result of the synchronization with EU policies. In the aftermath of this transformation, we expect to see larger and more efficient plants prevail with increased capacities and work with fewer growers with large acreages.

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This chapter was published in:
  • Oguz Esen & Ayla Ogus (ed.), 2007. "Proceedings of the International Conference on Globalization and Its Discontents," Proceedings of the IUE-SUNY Cortland Conference in Economics, Izmir University of Economics, number 2007, 08.
  • This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number 200711.
    Handle: RePEc:izm:prcdng:200711
    Contact details of provider: Fax: (90) 232 279 2626
    Web page: http://eco.ieu.edu.tr

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    1. Mercenier, Jean & Yeldan, Erinc, 1997. "On Turkey's trade policy: Is a customs union with Europe enough?," European Economic Review, Elsevier, vol. 41(3-5), pages 871-880, April.
    2. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1996. "Economic implications for Turkey of a customs union with the European Union," Policy Research Working Paper Series 1599, The World Bank.
    3. Kiefer, Nicholas M., 1980. "Estimation of fixed effect models for time series of cross-sections with arbitrary intertemporal covariance," Journal of Econometrics, Elsevier, vol. 14(2), pages 195-202, October.
    4. Togan, Sübidey, 1997. "Opening up the Turkish Economy in the Context of the Customs Union with EU," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 157-179.
    5. repec:bil:bilpap:964 is not listed on IDEAS
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