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Reform of the EU Sugar Regime: Impacts on Sugar Production in Ireland

Author

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  • Alan Matthews
  • Hannah Chaplin

Abstract

The EU Common Market Organisation has remained largely unchanged since its inception nearly 40 years ago. Reform has become inevitable due to changes to other sectors in the Common Agriculture Policy and pressure arising from international commitments. The current system provides sufficient support for all Member States to produce sugar, regardless of their efficiency. The proposed reform will therefore affect the least efficient producing regions most strongly. This paper examines the case of Ireland in light of the competitive position of its sugar sector in the EU context. Calculation of the likely impact on sugar beet gross margins and farm income suggest that many producers will want to exit sugar beet production. In light of this, the implications and possible strategies for growers and Irish Sugar are discussed.

Suggested Citation

  • Alan Matthews & Hannah Chaplin, 2005. "Reform of the EU Sugar Regime: Impacts on Sugar Production in Ireland," The Institute for International Integration Studies Discussion Paper Series iiisdp90, IIIS.
  • Handle: RePEc:iis:dispap:iiisdp90
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    File URL: http://www.tcd.ie/iiis/documents/discussion/pdfs/iiisdp90.pdf
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    Cited by:

    1. Alan Matthews & Jacques Gallezot, 2006. "The role of EBA in the political economy of CAP reform," The Institute for International Integration Studies Discussion Paper Series iiisdp133, IIIS.
    2. Alan Matthews & Hannah Chaplin & Thomas Giblin & Marian Mraz, 2007. "Strengthening Policy Coherence for Development in Agricultural Policy: Policy Recommendations to Irish Aid," The Institute for International Integration Studies Discussion Paper Series iiisdp188, IIIS.

    More about this item

    Keywords

    EU sugar policy; Irish agriculture; farm income;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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