Only two companies left in the domestic market

By: trademagazin Date: 2006. 11. 20. 08:00

Sugar factories had a profitable year in 2004, while not all sugar beet producers were as lucky. In Hungarian sugar factories almost half a million tons of white sugar were produced in 2004, and somewhat less, 492 tons in 2005, out of which 184 thousand tons were exported, but more than 47 thousand tons were imported as well. This year, the first year of the EU’s sugar reform, farmers were paid 20% less, but although this tendency will continue next year as well, members of the sugar beet producer’s association announced that they will continue with production, despite the new conditions. The profitability of companies in the sugar industry is decreasing, mainly due to the union reforms and the subsequent price drop. Only two actors will remain in the Hungarian sugar industry, due to the planned withdrawal from the market of Eastern Sugar. Hungarian sugar beet producers were hoping to gain on the EU accession, but their hopes were not met. The most painful year of the EU reforms will be 2006. Prognostics say that there will be several factory closedowns in the EU’s sugar beet countries.

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