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Efficiency Losses as a Result of Insufficient Structural Adjustments Due to the EC Sugar Regime: The Case of Germany

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  • Mahler, Peter

Abstract

Comparison of the current structure with an optimal structure of the German sugar sector indicates large potential for efficiency gains. Imposition of EC sugar quotas at the firm level created inefficiencies that have been maintained by the design of the EC sugar regime which hinders an adjustment to the long term optimum. As a result of simultaneous examination of regional beet supply functions, transportation and processing costs, total efficiency losses amount to more than 20 per cent of current production cost of sugar. Welfare losses of this extent accrue as benefits to a small pressure group and could be reduced if quotas are eliminated or made tradeable. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Mahler, Peter, 1994. "Efficiency Losses as a Result of Insufficient Structural Adjustments Due to the EC Sugar Regime: The Case of Germany," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 21(2), pages 199-218.
    • Handle: RePEc:oup:erevae:v:21:y:1994:i:2:p:199-218
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    Cited by:

    1. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "WTO Discipline and the CAP: the Constraints on the EU Sugar Sector," Working Papers 18872, TRADEAG - Agricultural Trade Agreements.
    2. Burrell, Alison M., 1995. "EU Agricultural Policy in 1993-94: Implementing CAP Reform," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), pages 1-20, April.
    3. Stefan Wimmer & Johannes Sauer, 2020. "Profitability Development and Resource Reallocation: The Case of Sugar Beet Farming in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 816-837, September.
    4. Walkenhorst, P., 2000. "Handelsliberalisierung, abgeleitete Produktnachfrage und die Wettbewerbsfähigkeit der Agrarwirtschaft," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 36.
    5. Iain Fraser & Andrew McInnes & Noel Russell, 1997. "The Allocation Of Sugarbeet Production Contracts: An Application Of Calibrated Production Equilibrium Modelling," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 139-150, January.
    6. Witzke, Heinz Peter & Heckelei, Thomas, 2002. "Eu Sugar Policy Reform: Quota Reduction And Devaluation," 2002 Annual meeting, July 28-31, Long Beach, CA 19807, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Marcel ADENÄUER & Kamel LOUHICHI & Bruno HENRY DE FRAHAN & Heinz Peter WITZKE., 2010. "Impact of the "Everything but Arms" Initiative on the EU Sugar Sub-Sector," EcoMod2004 330600001, EcoMod.
    8. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "Bridging Micro- and Macro-Analyses of the EU Sugar Program: Methods and Insights," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25799, International Association of Agricultural Economists.
    9. 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.

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