The sugar shopping fever which was apparent in Poland and Slovenia before they joined the European Union now also seems likely to repeat itself in Romania.
Romanian sugar producers are asking for a rise in customs duties, to protect their production, but also to prepare consumers for EU prices. One kilo of sugar might reach around 23-24,000 ROL, as compared to the current price of 18-20,000 ROL.
In Central European countries, sugar prices have already reached one euro per kg (in comparison to 40-50 cents in Romania), because the new member states have adopted the EU customs policy. This stipulates customs duties of more than 100% for imports of sugar from Brazil or Cuba, allowing the EU to protect its domestic producers of beet sugar from cheaper foreign competitors.
The drastic increase in customs duties for imported sugar, which is being proposed by the sugar industry, will have negative effects on the chocolate and soft drinks industries. According to sugar producers, this is meant as a protective measure against imports of cane sugar, which is much cheaper than beet sugar.
According to CAOBISCO, the organisation for EU manufacturers of sugar-based products, the community is expecting sugar prices to increase by more than 60%, which will have a negative impact on the sugar product industry. The increase in sugar prices within the EU over recent years has encouraged the big manufactures of sugar-based products to shift their production capacities from Western to Eastern Europe.
One of the first effects of EU expansion on the Romanian sugar industry has been an increase in orders for exports of cheaper Romanian sugar to destinations such as the Czech Republic or Slovenia.
"Orders from states that have recently joined the EU have gone up significantly, mostly from large producers with new plants. However, sugar exports to the EU are prohibitive, because of the customs barriers that make our products particularly expensive," noted Dan Popovici, trade manager with Lemarco SA Bucharest, which owns the Galati-based Liesti plant.
Lemarco is the second largest player on the sugar market behind Agrana Zucker of Austria, which owns three sugar plants and a third of the market.
On average, the EU imposes customs duties of 100% on imports of white sugar in order to protect its production.
stelian.negrea@zf.ro ; georgiana.stavarache@zf.ro
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