The Sugar Crash Report launched by the Fairtrade Foundation examines how the recent decision of the European Union to abolish sugar beet production quotas from 2017 will affect farmers in the global south who’s livelihoods depend on the sugar cane production.
The Council of Agriculture Ministers and the Commission took the decision despite a strong vote by members of the European Parliament to delay reform until 2020,
The lobbying power of big manufacturers in the sugar commodity market, like the ED&F Man group, played a crucial role in pushing the decision. This company together with other major multinational firms argued that the restrictions on sugar beet, which were in place in order to meet commitments on market access for around 18 sugar producers in African, Caribbean and Pacific (ACP) countries, were keeping sugar prices high. This, they contested, was reducing their own profitability and competitiveness, and that of smaller companies too.
“The major impacts are the sharp decline and severe volatility in price arising from the expanded production of sugar from EU beet growers in a market that is already over-supplied,” he says. “It is the livelihood of millions that depend on cane sugar cultivation and production that is being threatened.
The Council of Agriculture Ministers and the Commission took the decision despite a strong vote by members of the European Parliament to delay reform until 2020,
The lobbying power of big manufacturers in the sugar commodity market, like the ED&F Man group, played a crucial role in pushing the decision. This company together with other major multinational firms argued that the restrictions on sugar beet, which were in place in order to meet commitments on market access for around 18 sugar producers in African, Caribbean and Pacific (ACP) countries, were keeping sugar prices high. This, they contested, was reducing their own profitability and competitiveness, and that of smaller companies too.
“The major impacts are the sharp decline and severe volatility in price arising from the expanded production of sugar from EU beet growers in a market that is already over-supplied,” he says. “It is the livelihood of millions that depend on cane sugar cultivation and production that is being threatened.
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