Sugar business in the European Union after the elimination of production quotas – the case of Poland

Abstract

Sugar production is an important part of the agri-food sector in the European Union in general, and Poland in particular. Companies operating in this industry im-plement their own microeconomic goals and contribute to the development of the economies in which they are located. The results they achieved depend, to a large extent, on both economic and regulatory conditions. On 1 October 2017, a very important regulatory change was carried out, namely the reform of the sugar market regulation, the main element of which is the abolition of sugar production quotas and the minimum purchase price of sugar beet. Therefore, the author of this article, taking into account the fact that the regulations abolished on that date had functioned within the framework of the Common Agricultural Policy for almost fifty years, tries to answer the question about the consequences of the changes for the sugar industry in the EU. Without any doubt, the new reality in which EU and Polish sugar producers, as well as the sugar beet growers, have found themselves, will be demanding and will result in higher dynamics of the market mechanism. The vulnerability of the EU market to global demand-supply shocks will increase. It seems that an increase in the volatility of sugar prices will be one of the main consequences of deregulation. As a result, running a business in this industry will be more unpredictable.