IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2013061020463.html
   My bibliography  Save this article

Global sugar market - the analysis of factors influencing supply and demand

Author

Listed:
  • Lenka Rumánková

    (Department of Economics, Czech University of Life Sciences of Prague, Kamýcká 129, 165 21 Praha 6 - Suchdol, Czech Republic)

  • Luboš Smutka

    (Department of Economics, Czech University of Life Sciences of Prague, Kamýcká 129, 165 21 Praha 6 - Suchdol, Czech Republic)

Abstract

This article deals with an analysis of the world sugar market, and specifically focuses on the supply and demand of refined sugar and their main determinants. The article first identifies the main determinants of the world supply of and demand for sugar, and further, their effect on such variables is quantified. Further, the component correlations on the selected market are analyzed. This consists of the identification of the factors affecting the production of refined sugar, as one of the main elements of the supply of sugar, as well as an analysis of the world price of sugar, as one of the significant factors affecting the world sugar market. The said correlations are quantified with the utilization of regression analysis on the basis of time series of the individual variables within the years 1980-2010. On the basis of the conducted analysis, the main determinants of the sugar supply on the world market within the analyzed period, for which an effect has been established both from an economic viewpoint, as well as from a statistical viewpoint, can be considered to be sugar reserves, its price and the acreage of sugarcane. The main determinant of the demand for sugar is, according to the conducted analysis, the global GDP on a new value level, as well as converted to one inhabitant. Further, the analysis also established the effect of the price of sugar and its reserves on the world production of refined sugar, and, last but not least, also the long-term tendency in the development of the world price of sugar. The analysis has proven significant influence of refined sugar supply, reserves of refined sugar, its price and area of sugar cane on sugar supply. Then, the analysis detected GDP as the main determinant of the sugar demand and the long memory in sugar prices. Finally, the influence of delayed price, reserves and delayed reserves on production has been proven.

Suggested Citation

  • Lenka Rumánková & Luboš Smutka, 2013. "Global sugar market - the analysis of factors influencing supply and demand," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(2), pages 463-471.
    • Handle: RePEc:mup:actaun:actaun_2013061020463
    DOI: 10.11118/actaun201361020463
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201361020463.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201361020463.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun201361020463?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. S¯ren E. Frandsen & Hans G. Jensen & Wusheng Yu & Aage Walter-J¯rgensen, 2003. "Reform of EU sugar policy: price cuts versus quota reductions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 1-26, March.
    2. Stephan Nolte & Harald Grethe & Jeroen Buysse & Bart Van der Straeten & Dakerlia Claeys & Ludwig Lauwers & Guido Van Huylenbroeck, 2010. "Modelling preferential sugar imports of the EU: a spatial price equilibrium analysis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(2), pages 165-186, June.
    3. Balat, Mustafa & Balat, Havva, 2009. "Recent trends in global production and utilization of bio-ethanol fuel," Applied Energy, Elsevier, vol. 86(11), pages 2273-2282, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nihed Ben Khalifa & Abdessalem Abbassi & Ahlem Dakhlaoui, 2024. "Evaluating the Impacts of Subsidy Removal by Using a Linear-Quadratic Storage Model: the Case of Tunisian Sugar Industry," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4673-4690, March.
    2. Pavel Kotyza & Katarzyna Czech & Michał Wielechowski & Luboš Smutka & Petr Procházka, 2021. "Sugar Prices vs. Financial Market Uncertainty in the Time of Crisis: Does COVID-19 Induce Structural Changes in the Relationship?," Agriculture, MDPI, vol. 11(2), pages 1-16, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Irena Benešová & Helena Řezbová & Luboš Smutka & Karel Tomšík & Adriana Laputková, 2015. "European Sugar Market - Impact of Quota System," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 1825-1838.
    2. Yasuda, Masahide & Matsumoto, Tomoko & Yamashita, Toshiaki, 2018. "Sacrificial hydrogen production over TiO2-based photocatalysts: Polyols, carboxylic acids, and saccharides," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1627-1635.
    3. Bharathiraja, B. & Jayamuthunagai, J. & Sudharsanaa, T. & Bharghavi, A. & Praveenkumar, R. & Chakravarthy, M. & Yuvaraj, D., 2017. "Biobutanol – An impending biofuel for future: A review on upstream and downstream processing tecniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 788-807.
    4. M'Arimi, M.M. & Mecha, C.A. & Kiprop, A.K. & Ramkat, R., 2020. "Recent trends in applications of advanced oxidation processes (AOPs) in bioenergy production: Review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    5. Marie M Stack & Rob Ackrill & Martin Bliss, 2019. "Sugar trade and the role of historical colonial linkages," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(1), pages 79-108.
    6. Sánchez, S. & Lozano, L.J. & Godínez, C. & Juan, D. & Pérez, A. & Hernández, F.J., 2010. "Carob pod as a feedstock for the production of bioethanol in Mediterranean areas," Applied Energy, Elsevier, vol. 87(11), pages 3417-3424, November.
    7. Jin, Wenxiang & Chen, Ling & Hu, Meng & Sun, Dan & Li, Ao & Li, Ying & Hu, Zhen & Zhou, Shiguang & Tu, Yuanyuan & Xia, Tao & Wang, Yanting & Xie, Guosheng & Li, Yanbin & Bai, Baowei & Peng, Liangcai, 2016. "Tween-80 is effective for enhancing steam-exploded biomass enzymatic saccharification and ethanol production by specifically lessening cellulase absorption with lignin in common reed," Applied Energy, Elsevier, vol. 175(C), pages 82-90.
    8. Phanankosi Moyo & Mahluli Moyo & Donatus Dube & Oswell Rusinga, 2013. "Biofuel Policy as a Key Driver for Sustainable Development in the Biofuel Sector: The Missing Ingredient in Zimbabwe’s Biofuel Pursuit," Modern Applied Science, Canadian Center of Science and Education, vol. 8(1), pages 1-36, February.
    9. Tan, Raymond R. & Aviso, Kathleen B. & Barilea, Ivan U. & Culaba, Alvin B. & Cruz, Jose B., 2012. "A fuzzy multi-regional input–output optimization model for biomass production and trade under resource and footprint constraints," Applied Energy, Elsevier, vol. 90(1), pages 154-160.
    10. Amani Elobeid & John Beghin, 2006. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 23-48, March.
    11. Conconi, Paola, 2008. "Comment: EC – Export Subsidies on Sugar," World Trade Review, Cambridge University Press, vol. 7(1), pages 179-182, January.
    12. Yao, Yung-Chen & Tsai, Jiun-Horng & Wang, I-Ting, 2013. "Emissions of gaseous pollutant from motorcycle powered by ethanol–gasoline blend," Applied Energy, Elsevier, vol. 102(C), pages 93-100.
    13. Starfelt, Fredrik & Daianova, Lilia & Yan, Jinyue & Thorin, Eva & Dotzauer, Erik, 2012. "The impact of lignocellulosic ethanol yields in polygeneration with district heating – A case study," Applied Energy, Elsevier, vol. 92(C), pages 791-799.
    14. Vallinayagam, R. & Vedharaj, S. & Yang, W.M. & Roberts, W.L. & Dibble, R.W., 2015. "Feasibility of using less viscous and lower cetane (LVLC) fuels in a diesel engine: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1166-1190.
    15. Katia A. Figueroa-Rodríguez & Francisco Hernández-Rosas & Benjamín Figueroa-Sandoval & Joel Velasco-Velasco & Noé Aguilar Rivera, 2019. "What Has Been the Focus of Sugarcane Research? A Bibliometric Overview," IJERPH, MDPI, vol. 16(18), pages 1-15, September.
    16. Poder, Thomas G. & He, Jie, 2017. "Willingness to pay for a cleaner car: The case of car pollution in Quebec and France," Energy, Elsevier, vol. 130(C), pages 48-54.
    17. Nolte, Stephan & Grethe, Harald, 2012. "Der Markt für Zucker," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(Supplemen), pages 1-14, February.
    18. Jeroen BUYSSE & Bruno FERNAGUT & Olivier HARMIGNIE & Bruno HENRY DE FRAHAN & Ludwig LAUWERS & Philippe POLOMÉ & Guido VAN HUYLENBROECK & Jef VAN MEENSEL, 2010. "Modelling the Impact of Sugar Reform on Belgian Agriculture," EcoMod2004 330600031, EcoMod.
    19. Maity, Sunil K., 2015. "Opportunities, recent trends and challenges of integrated biorefinery: Part II," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1446-1466.
    20. Aliyu, Abubakar Sadiq & Dada, Joseph O. & Adam, Ibrahim Khalil, 2015. "Current status and future prospects of renewable energy in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 336-346.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mup:actaun:actaun_2013061020463. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.