Sir Thomas Middleton Memorial Lecture
Responding to the Challenges of Policy Decoupling and Market Liberalisation: The Case of the UK Sugar Industry
Recent Common Agricultural Policy (CAP) reforms have led to the most liberalised agricultural European markets since the formation of the CAP in the early 1960s. Whilst there is more to do, including removing the oddities of set-aside, production quotas for milk and the further dismantling of the intervention system, the 'Mid Term Reform' of 2003 looks set to run its course to 2012 relatively unchanged by the 'Health Check Proposals' expected to be presented by the Commission to Council during the first half of 2008.
This aim of this paper is focus on how the UK sugar industry – farmers, processors and other stakeholders – respond in this new environment of decoupled support and increasingly liberalised markets. It is a sector which has been more heavily protected than most, and for its own special reasons, has remained untouched by reformers for several decades. The paper looks at the historical development of the industry and the policy instruments, the reforms of 2005 and suggests some likely impacts on the UK industry at farm and supply chain level.
"Mid Term Reform" of the CAP as it has become known was, and is, all embracing, but it has taken a while to get there. Initially even Franz Fischler was not brave enough to tackle sugar, focussing on the 'easier' regimes of arable and livestock in 2003. Given that he was 'on a roll' securing a pretty favourable deal for the Commission in Luxembourg he went on to tackle the so-called Mediterranean regimes (olive oil, hops, tobacco, cotton) in 2004 and finally, in 2005, he wrestled with the vexed question of sugar. For many this was long overdue, a situation acknowledged by his successor Mariann Fischer Boel (Fischer Boel, 2005a). Only fruit and vegetables, wine and bananas together with a small number of other products await the full implementation of their reform packages and their eventual alignment with the single payment scheme (SPS).
For the full research document please view the Memorial Lecture pdf
