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Monday, 09 October 2017

EU sugar quota system comes to an end

The very last agricultural quota system in place, managing sugar production in the EU, were scrapped on 30 September, after nearly 50 years, part of a major CAP reform and restructuring process. The sugar quota system was introduced with the first Common Agricultural Policy rules on sugar in 1968, along with a support price for producers set at a level significantly above the world market price. The decision to end the quota system for sugar was taken by EU Member States in 2006. The end of the quota system follows significant reform of the sector from The very last agricultural quota system in place, managing sugar production in the European Union, were scrapped on 30 September 2017, after nearly 50 years. The decision to end the sugar quotas now was agreed between the European Parliament and Member States in the 2013 reform of the Common Agricultural policy (CAP) after a major reform and restructuring process initiated in 2006. Between 2006 and 2010, the sugar sector had been thoroughly restructured with the support of €5.4 billion. As a result, the sector has been able to carefully prepare for this moment and productivity has improved substantially over the last years. The end of the quota system gives producers the possibility to adjust their production to real commercial opportunities, notably in exploring new export markets. It also significantly simplifies the current policy management and administrative burden for operators, growers and traders. Phil Hogan, Commissioner for Agriculture and Rural Development, said: "The end of the quota system represents an important turning point for our European sugar sector and marks another important step in the market orientation of the Common Agricultural Policy. Producers will now have the opportunity to expand their trade on global markets, and with the right policy supports from the European Commission – such as the Sugar Market Observatory which provides timely and relevant market information – they should have every chance of success. I am confident that, since the end date for sugar quotas was decided, the industry has positioned itself well to benefit from the opportunities which the end of sugar quotas presents."

Source: European Commission