According to press reports Hungary’s sugar industry is looking to import raw cane sugar from Zimbabwe in order to sustain its operations and avert the downsizing or closure of the sugar industry which has occurred elsewhere in new member states. Although discussions are still at an early stage it is felt that imports of ACP raw sugar could even allow an expansion of direct-consumption sugars from these facilities. This could signal a shift in patterns of ACP sugar exports within Europe, although it is argued that government policy with regard to import licensing will be a critical factor in whether this trade can develop.
Escalating costs, declining sugar prices and rising prices of other agricultural commodities (e.g. wheat and rapeseed) are dramatically transforming the economics of sugar production in the EU.
Reuters, July 24th 2008
http://africa.reuters.com/country/ZW/news/usnL2688272.html
Critical to the development of this trade will be the price on offer and whether new markets in eastern Europe offer better alternatives to the new markets (not existing markets) which will need to be developed in ‘old’ EU member states. As EU import-licensing arrangements are liberalised, LDC and ACP sugar exporters will seek to take advantage of the expanded market-access opportunities, generating increased competition to supply 'traditional’ markets.