Industry Analysis & Industry Trends
The Sugar Production industry has soured over the past five years. The United Kingdom is at the mercy of the global sugar market and is highly susceptible to fluctuations in production, supply trends, weather conditions and world prices. The EU sugar reform that came into effect in 2006 has created difficulties for the industry by imposing quotas, import tariffs and export refunds. Production of sugar beet across the European Union has fallen over the past five years, with some member states choosing to completely relinquish their quotas and opting to substitute beet production for ethanol and other biofuels. Despite this, sugar beet remains the favoured sugar input in the European Union, which endeavours to protect its production through licensing and price setting... purchase to read more
Industry Report - Starting a New Business Chapter
New entrants face high and steady barriers to entry to the sugar producing market in the United Kingdom mainly due to the extremely high level of industry concentration. These companies are preferred suppliers to the country's major food and beverage processors and retail markets. Moreover, the dominance of the United Kingdom's two leading sugar producers may restrict the ability of new millers to secure contracts with existing growers to gain a steady supply sugar beet for processing. Equally, supermarkets have established supply chains with either these companies or directly with foreign organisations. The combination of the two dominant firms and imported produce leaves the market completely saturated with almost no demand for potential new entrants to satisfy... purchase to read more