2205 final report.pdf - Agra CEAS Consulting

IMPACT OF THE EU SUGAR REGIME ON BCCCA MEMBER COMPANIES
As a result of the fall in the production of BCCC products in the UK, which is in excess of any
increases in consumption, net trade in sugar confectionery, all chocolate and biscuits (and other
baked goods) has been decreasing. Moreover, since 2002 there has, for the first time, been a
negative trade balance in all BCCC products (namely sugar confectionery, all chocolate and biscuits
(and other baked goods)) (Figure 3.6).
35.0
15.0
Net trade (tonnes)
-5.0
-25.0
-45.0
-65.0
1998 1999 2000 2001 2002 2003
Sugar confectionary Chocolate (all products) Biscuits (and baked goods)
Figure 3.6: UK net trade in sugar confectionery, chocolate and biscuits, 1998 to 2003
Source: CAOBISCO
Section 3.1 found that the CMO for sugar had not resulted in a level playing field between the EU
(namely extra-EU exporters) and third countries for the price of sugar, nor between the UK and
other EU Member States. Results from the industry survey suggest that the higher (and more
volatile) UK price may have contributed to the decline in production and the negative trade balance
of BCCC products, as presented in Figure 3.3 to Figure 3.6. Of those companies that attached more
significance to the price of sugar in explaining changes in employment over the last five years, the
majority have tended to reduce:
• the volume of sugar used in production of BCCC products (Figure 3.7);
• the volume of BCCC production (Figure 3.8);
• the volume of extra-EU exports of BCCC products (Figure 3.9);
• the volume of intra-EU exports of BCCC products (Figure 3.10); and,
• the level of employment (Figure 3.11).
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