Funferal

EU sugar subsidies to be cut? No one happy?

For those of us with only a passing understanding of the EU’s agricultural subsidies the current furore over sugar subsidies is confusing. The EU has announced plans for a radical ‘reform’ of these subsidies, reducing them substantially.
Where it becomes complicated is that the changes are expected not only to wipe out the sugar industry in Ireland and some other EU members, but also to have serious adverse consequences for many poor non-member countries, who will also lose EU funding. It’s unclear, but it may be that factories in Europe pay above-the-odds to all suppliers, including those from outside the EU. The total loss to these countries is estimated at €400m per year. So very few people are happy:

The only ones to benefit from sharp drops in prices for sugar are industrial sugar users, like candy and soft drinks manufacturers. They hail the reform as a step in the right direction towards making their businesses more profitable.