Concentration in the Czech and Polish sugar markets

2020 ◽  
pp. 224-233
Author(s):  
Andrzej Hornowski ◽  
Karolina Pawlak ◽  
Luboš Smutka ◽  
Pavel Kotyza
Keyword(s):  
Value Chain ◽  
Structural Changes ◽  
Central And Eastern Europe ◽  
Sugar Industry ◽  
Rapid Development ◽  
Quota System ◽  
The Czech Republic ◽  
Sugar Market ◽  
The Eu

In Central and Eastern Europe countries, the sugar industry has undergone a number of structural changes in the post-communist era, especially after accession into the EU in 2004, which implemented a sugar market reform in 2006 and then ended the sugar quota system in 2017. From a long-term perspective, EU sugar industry is undergoing a rapid development – increasing productivity, rising concentration as well as changes in market and regulated environments. For the Polish and Czech sugar industry, changes in the industry concentration can be identified by analysing the development of beet areas, quotas, beet yields, revenues and profits of the sugar industry players. This helps to better define the position of the sugar industry in the whole value chain in Poland and in the Czech Republic. It was noted that the position of the Czech sugar factories in the value chain has increased significantly. In Poland, market concentration at the level of sugar factories has remained stable.

Isoglucose – How significant is the threat to the EU sugar industry?

2013 ◽  
pp. 770-777
Author(s):  
Yelto Zimmer
Keyword(s):  
Market Share ◽  
Sugar Industry ◽  
Quota System ◽  
Strong Incentive ◽  
Major Market ◽  
The Us ◽  
Sugar Market ◽  
Extreme Scenario ◽  
Competitive Product ◽  
The Eu

The EU is about to abolish the sugar – and the isoglucose – quota system in 2016/17. Isoglucose made from corn occupies about 50% of the US sweetener market while its market share in the EU caloric sweetener market is less than 5%. Against this background, this paper analyses the economics of isoglucose production in Europe in order to understand its competitiveness vis-à-vis sugar. Key results: (1) Isoglucose will become a rather competitive product. The EU sugar industry will have to give up about 40% of its current processing and profit margin in order to sell sugar at the same price as isoglucose will be traded; (2) Once industrial sugar users move to isoglucose, they will tend to be “hooked-in,” giving the sugar industry a strong incentive to defend its market share; and (3) Since only about 30% of the current sugar market is able to switch to isoglucose, the sugar industry has the option to practice a mixed calculation. In an extreme scenario, the industry may even opt to cross-subsidize sales. Therefore it’s not clear whether investors in isoglucose will be able to gain a major market share in Europe.

THE EU SUGAR MARKET PROFILE AND ITS MAIN DRIVERS

2015 ◽  
Author(s):  
Lubos SMUTKA ◽  
Irena BENEŠOVÁ ◽  
Patrik ROVNÝ ◽  
Renata MATYSIK-PEJAS
Keyword(s):  
Market Failure ◽  
Current System ◽  
Quota System ◽  
Considerable Debate ◽  
Sugar Market ◽  
The Common ◽  
The One ◽  
Production Capacities ◽  
The Given ◽  
The Eu

Sugar is one of the most important elements in human nutrition. The Common Market Organisation for sugar has been a subject of considerable debate since its establishment in 1968. The European agricultural market has been criticized for its heavy regulations and subsidization. The sugar market is one of the most regulated ones; however, this will change radically in 2017 when the current system of production quotas will end. The current EU sugar market changed is structure during the last several decades. The significant number of companies left the market and EU internal sugar market became more concentrated. The aim of this paper is presentation characteristics of sugar market with respect to the supposed market failure – reduction in competition. The analysis also identifies the main drivers and determinants of the EU especially quota sugar market. In relation to paper’s aim the following results are important. The present conditions of the European sugar market have led to market failure when nearly 75 % (10 million tonnes) of the quota is controlled by five multinational companies only. These multinational alliances (especially German and French one) are also taking control over the production capacities of their subsidiaries. In most countries, this causes serious problems as the given quota is controlled by one or two producers only. This is a significant indicator of market imperfection. The quota system cannot overcome the problem of production quotas on the one hand and the demand on the other; furthermore, it also leads to economic inefficiency. The current EU sugar market is under the control of only Sudzucker, Nordzucker, Pfeifer and Langen, Tereos and ABF.

EUROPEAN UNION´S SUGAR MARKET CONCENTRATION UNDER THE SUGAR QUOTA PRODUCTION SYSTEM

2015 ◽  
Author(s):  
Ľuboš SMUTKA ◽  
Helena ŘEZBOVÁ ◽  
Patrik ROVNÝ
Keyword(s):  
United Kingdom ◽  
Quota System ◽  
Eu Member States ◽  
The United Kingdom ◽  
Sugar Market ◽  
Current Production ◽  
High Dynamic ◽  
Production Capacities ◽  
Very High ◽  
The Eu

The European sugar beet quota system is in very high dynamic process in recent years. The number of sugar companies involved in this system has been constantly decreasing. The aim of this paper is to define subjects (companies/alliances), which possess the current production capacities working under the production quotas system. The paper is determining especially the level of beet sugar production quota holder system concentration using the Herfindahl-Hirschman Index. The paper provides the following findings. The European quota holder system is extremely concentrated and it is becoming more and more dominated by fewer players. Sugar quota is distributed among 19 EU-Member States. In this regard, the quota is generous, especially in relation to France, Germany, Poland and United Kingdom. In Finland, Lithuania, Hungary, Sweden, Denmark, the Netherlands, Slovakia and the United Kingdom controlled by two or even one subject (companies, alliances). There is a large discrepancy between political efforts to distribute equitable R 1308/2013-sugar quotas among states and the actual reality of those distributions. While the EU-quota holder system does not indicate an extreme concentration, an analysis according to the headquarters´ location and allocated quotas to owners of production capacities provides the evidence of extreme concentration.

scholarly journals Circular Agreements—Exploring the Role of Agreements and Deals as a Political Tool for a Circular Economy

2021 ◽  
Author(s):  
Nils Johansson
Keyword(s):  
Value Chain ◽  
Circular Economy ◽  
Policy Instruments ◽  
Alternative Form ◽  
Advantages And Disadvantages ◽  
Free Rider Problem ◽  
Political Governance ◽  
The Eu

AbstractA problem for a circular economy, embedded in its policies, tools, technologies and models, is that it is driven by the interests and needs of producers, rather than customers and users. This opinion paper focuses on an alternative form of governance—agreements, which thanks to their bargaining approach brings actors from across the value chain into the policy process. The purpose of this opinion paper is to uncover and analyse the potential of such agreements for a circular economy. Circular agreements aim at increasing the circulation of materials and are an emerging form of political governance within the EU. These agreements have different names, involve different actors and govern in different ways. However, circular agreements seem to work when other types of regulations fail to establish circulation. These agreements bring actors together and offer a platform for negotiating how advantages and disadvantages can be redistributed between actors in a way that is more suitable for a circular economy. However, circular agreements are dependent on other policy instruments to work and can generate a free-rider problem with uninvolved actors. The agreements may also become too detailed and long term, which leads to problem shifting and lock-ins, respectively.

scholarly journals Wpływ regulacji rynku na funkcjonowanie sektora cukrowniczego w Polsce

2014 ◽  
pp. 127-141 ◽  
Author(s):  
Michał Pietrzak ◽  
Marcin Mucha
Keyword(s):  
European Union ◽  
European Commission ◽  
Sugar Industry ◽  
Free Market ◽  
World Market ◽  
The European Union ◽  
Market Conditions ◽  
The World ◽  
Sugar Market ◽  
The Eu

In the period 1990–2013 sugar industry in Poland faced numerous legal transformations, shifting from nearly free-market conditions into a strongly regulated sector. Changes of the sugar industry regulations had a significant impact on the structure of the sugar market, companies’ actions and, as a result, on their performance. Accession to the European Union and the reform of the sugar regime conducted from 2006 to 2010 on the initiative of the European Commission involved deep restructuring and modernization of the factories, which caused growth of their productivity. However, prices of sugar in the EU and in Poland are much higher than prices on the world market.

scholarly journals Micro-economic analysis of farm restructuring in Central and Eastern Europe: an overview of major results

2012 ◽  
Vol 48 (No. 5) ◽  
pp. 189-196
Author(s):  
E. Mathijs
Keyword(s):  
Economic Analysis ◽  
Eastern Europe ◽  
Rural Areas ◽  
Central And Eastern Europe ◽  
Family Farms ◽  
The Czech Republic ◽  
Production Sector ◽  
Economic Decisions ◽  
Farm Operators ◽  
The Eu

The aim of this paper is to summarize the results of the EU Phare ACE research project P97-8158-R, “Micro-economic analysis of farm restructuring in Central and Eastern Europe”, that tries to fill the gap of theoretical as well as empirical research into the implications of continuing and evolving farm restructuring in CEECs on the efficiency of the agricultural production sector and the development of rural areas by focusing on the economic decisions and perspectives of farm operators, asset owners and rural households. For this purpose, surveys among family farms and farm enterprises were carried out in 2000 in Albania, the Czech Republic and Slovakia.

scholarly journals Study of legislative and administrative obstacles to SMEs business in the Czech Republic and Slovakia

2020 ◽  
Vol 11 (4) ◽  
pp. 689-719
Author(s):  
Beata Gavurova ◽  
Jaroslav Belas ◽  
Yuriy Bilan ◽  
Jakub Horak
Keyword(s):  
Czech Republic ◽  
Value Added ◽  
Business Environment ◽  
The Czech Republic ◽  
Advanced Economies ◽  
Stable Conditions ◽  
The Eu ◽  
Administrative Obstacles

Research background: SMEs represent an integral part of the economy environment in a majority of the countries all over the world. They signify the most efficient, progressive, and important part of the advanced economies. The long-term effort of the EU countries, as well as other advanced economies is to create quality and stable conditions for their development in order to be able to respond to all the possible changes in the business environment that is being changed to more and more comprehensive in the recent time. Purpose of the article: The objective of the contribution is to examine administrative and legislative obstacles to SMEs business in the Czech Republic and Slovakia and the quantification of the differences in perceiving legislative and administrative obstacles to business by entrepreneurs in both countries. Methods: A questionnaire survey was conducted within SMEs in the Czech Republic and Slovakia in 2019. The research sample included 641 SMEs, 312 from the Czech Republic and 329 from Slovakia. We focused on 5 dimensions related to legislative and administrative obstacles to SMEs business within which selected statements were examined. Contingency tables were used to analyze the ratios of the examined variables. Findings & Value added: The differences detected in both countries in the respondents´ perception and assessment are evidence of the changes in the business environment of both countries, giving rise to the questions about the extent to which the legislative and administrative obstacles, as well as the obstacles related to law enforcement and bureaucracy are acceptable and by which groups of entrepreneurs. The results of the research provide valuable findings for the creators of regional and national policies, and represent a valuable basis for the creation of the concepts focused on the SMEs´ development in both countries.  The results of the study also support the implementation of follow-up research in this area that will reveal other determinants affecting the development of SMEs. They also create a valuable platform for the construction of national and international benchmarking indicators in this area and the implementation of comparative analyses. This will also support the methodological area necessary for a creation of high-quality concepts and strategies.

scholarly journals Global Value Chain Resilience: Understanding the Impact of Managerial Governance Adaptations

2022 ◽  
pp. 000812562110666
Author(s):  
Liena Kano ◽  
Rajneesh Narula ◽  
Irina Surdu
Keyword(s):  
Value Chain ◽  
Structural Changes ◽  
Lessons Learned ◽  
Value Chains ◽  
Global Value Chain ◽  
Short Term ◽  
Initial Shock ◽  
Lead Firm ◽  
The Impact

While COVID-19 has caused significant short-term disruptions in global value chains (GVCs), in the longer run, the pandemic will not be the primary catalyst in GVC evolution. As GVCs recover from the initial shock, managers will make GVC restructuring decisions guided by long-term strategic considerations. This article describes barriers that lead firm managers may encounter when rethinking location/control decisions for value chain activities and suggests that, in addition to structural changes, managerial governance adaptations are instrumental in enhancing GVCs’ long-term resilience. Lessons learned from responding to the pandemic can help managers enhance GVC efficiency in the increasingly uncertain global environment.

Germany’s trade surplus benefits the euro-area

2018 ◽  
Keyword(s):  
Euro Area ◽  
Domestic Demand ◽  
Growth Potential ◽  
Gdp Growth ◽  
Trade Surplus ◽  
The Czech Republic ◽  
Content Type ◽  
The World ◽  
The Eu

Subject Germany’s trade surplus. Significance Germany runs a large trade surplus with other euro-area countries and the rest of the world. Critics have argued that wages in Germany have not increased enough in recent years and that the country should boost domestic demand. However, trade and wage developments with other euro-area countries show that such criticism is largely misguided. Impacts Germany’s offshoring of production processes helps boost GDP growth in countries such as Slovakia and the Czech Republic. Creating a more innovation-friendly environment and investing in R&D would lift the long-term growth potential of the euro-area. Completing the digital single market could contribute to more innovation across the EU.

TRANSFORMATIONS IN POLISH SUGAR INDUSTRY IN THE YEARS 2010-2016

2017 ◽  
Vol XIX (4) ◽  
pp. 104-109 ◽  
Author(s):  
Agnieszka Judzińska
Keyword(s):  
Structural Changes ◽  
Sugar Industry ◽  
Economic Situation ◽  
Financial Ratios ◽  
Regulation System ◽  
Market Regulation ◽  
Positive Aspect ◽  
Investment Activity ◽  
Financial Condition ◽  
Sugar Market

The aim of the paper was to present the most important changes that took place in the Polish sugar industry in the years 2010-2016. Particular attention was paid to the structural changes, the economic and financial condition of the sector, as well as trade results. The domestic sugar industry is highly concentrated and is oligopolistic. Following a temporary fall in the years 2013-2015, in 2016 the revenue and significant improvement in financial ratios were recorded. The good economic situation of the sector and re-growth of investment activity are a positive aspect before the forthcoming changes in the sugar market regulation system.

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