EU SUGAR QUOTA SYSTEM COMES TO AN END

MBABANE – The very last agricultural quota system in place, managing sugar production in the European Union (EU) - one of Swaziland’s major export markets - has been scrapped off after nearly 50 years of existence.

 The EU sugar quota system came to an end on Saturday (September 30, 2017).
Challenging times, that will require a great deal of a competitive boost, lie ahead for Swaziland’s largest employer - the sugar industry.   
The decision to end the sugar quotas was agreed between the European Parliament and Member States in the 2013 reform of the Common Agricultural policy (CAP) after a major reform and restructuring process initiated in 2006.

This effectively means, Swaziland and other countries that supply sugar to the EU will no longer have a quota of sugar they supply to the EU, but will also have to compete against other sugar producing countries from around the world.
Swaziland Sugar Association (SSA) Chief Executive Officer (CEO) Phil Mnisi said they would continue supplying the European Union (EU).

Diversify

“We will still be supplying the EU market but to diversify and hedge our risk we will be looking into the domestic, regional and any other markets that can give us a better yield,” Mnisi explained.
It should, however, be mentioned that between 2006 and 2010, the sugar sector had been thoroughly restructured with the support of €5.4 billion. As a result, the sector has been able to carefully prepare for this moment and productivity has improved substantially over the last years.

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