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Economic Incentives to Supply Sugar Beets in Europe

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  • Adenäuer, Marcel
  • Heckelei, Thomas

Abstract

Currently European farmers produce considerable sugar quantities above their quota in different EU member states which cannot be explained with standard profit maximizing behaviour. This paper analyses how much two alternative behavioural models - expected profit maximization and utility maximization – can contribute to explain observed sugar production. The analysis is done for an average and the distribution of sugar producers in 13 EU countries based on analytical derivations of expected profit and profit variability under the quota regulation. Despite considerable differences between countries and farms, a significant amount of C-sugar production cannot be explained by these models.

Suggested Citation

  • Adenäuer, Marcel & Heckelei, Thomas, 2005. "Economic Incentives to Supply Sugar Beets in Europe," 89th Seminar, February 2-5, 2005, Parma, Italy 231822, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae89:231822
    DOI: 10.22004/ag.econ.231822
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    References listed on IDEAS

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    1. Bureau, Jean-Christophe, et al, 1997. "Quota Mobility in the European Sugar Regime," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(1), pages 1-30.
    2. 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.
    3. 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).
    4. 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.
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    Cited by:

    1. Maurizio Bussolo & Jann Lay, 2003. "Globalisation and Poverty Changes in Colombia," OECD Development Centre Working Papers 226, OECD Publishing.
    2. 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.
    3. 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.
    4. Buysse, Jeroen & Fernagut, Bruno & Harmignie, Olivier & Henry de Frahan, Bruno & Lauwers, Ludwig & Polomé, Philippe & Van Huylenbroeck, Guido & Van Meensel, Jef, 2005. "Quota in Agricultural Positive Mathematical Programming Models," 89th Seminar, February 2-5, 2005, Parma, Italy 240759, European Association of Agricultural Economists.

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