Evaluating the 2006 EU sugar reform: A study of the linkage between the instruments and the objectives of the reform

Abstract: This thesis investigates to what extent sugar beet growers are affected by changes in sugar quotas within the EU during the 2006-2009 reform. A survey of previous research is conducted which concludes that none have found direct linkage between sugar production quotas and sugar beet production. Nevertheless, the EU proclaims the 2006 reform a success merely based on the fact that the reform has reduced production quotas. In contrast to previous research, this thesis uses actual data from the 2006 reform when evaluating the reform impact. The analysis suggests a strong linkage based on aggregate data. However, new evidence of non-quota production being unaffected in low-cost countries is found, confirming conclusions drawn in previous research. A direct linkage thus remains unproven. The thesis concludes by suggesting that future research should include EU-wide data on production costs on a farm level in order to more accurately predict the impact of the reform.