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Sugar raw materials: production systems and production costs in chosen countries
Project
Project code: TI-BW-08-PID1468
Contract period: 01.09.2014
- 01.12.2020
Purpose of research: Inventory & Assessment
The sugar market will be liberalized more and more. As a result of the EBA agreement, the least developed countries (LDC) had been able to export unlimited amounts of tax free sugar to the EU since 2009. Additionally, the EU aims a free trade agreement with the Mercosur States. If sugar will not be classified as a sensitive product, this could lead to additional sugar imports into the EU. As a result, the increasing sugar imports could substitute European beet sugar. Until today the sugar imports from the AKP and LDC countries are rather small and just in the range of 2 Mio. t. The share of LDC sugar is below 500.000 t. Anyhow, if the future world market price for sugar will be remarkably below the EU price and the economic development of the LDC-countries should prove positive, imports of sugar could be increasing and significant. Against this background we want to examine, which price relations make an export of sugar interesting for chosen LDC countries. With the help of regional statistics we will analyze the state of sugar cane production in Tanzania, Mozambique and Zambia. On this basis we will establish typical farms and calculate the production costs of sugar cane. We use typical farms to analyze the production costs of sugar cane. We will establish these typical farms together with our international partner institutions and farmers within the respective regions. For the calculation of the production costs we will use our TYPICROP model.
Section overview
Subjects
- Crop Production
- Business administration
