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

48 Pages Posted: 8 Aug 2006

See all articles by Hannah Chaplin

Hannah Chaplin

Trinity College (Dublin) - Institute for International Integration Studies (IIIS)

Alan Matthews

Trinity College (Dublin) - Department of Economics

Date Written: October 2005

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.

Keywords: EU sugar policy, Irish agriculture, farm income

JEL Classification: Q18, Q12

Suggested Citation

Chaplin, Hannah and Matthews, Alan, Reform of the EU Sugar Regime: Impacts on Sugar Production in Ireland (October 2005). IIIS Discussion Paper No. 90, Available at SSRN: https://ssrn.com/abstract=922066 or http://dx.doi.org/10.2139/ssrn.922066

Hannah Chaplin

Trinity College (Dublin) - Institute for International Integration Studies (IIIS) ( email )

The Sutherland Centre, Level 6, Arts Building
Trinity College
Dublin 2
Ireland

Alan Matthews (Contact Author)

Trinity College (Dublin) - Department of Economics ( email )

Dublin 2
Ireland
+00353 1 896 1069 (Phone)
+00353 1 677 2503 (Fax)

HOME PAGE: http://www.tcd.ie/Economics/staff/amtthews/index.htm

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