The Turkish Sugar Industry in the Aftermath of EU Sugar Reform
In: Proceedings of the Conference on Globalization and Its Discontents
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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