Estonia, EU – Baltic States, Foodstuff, Markets and Companies

The board’s PR manager Maarja Uulits said that production of sugar is highly regulated in the EU as only a limited quota worth of it can be produced. 6-7 large concerns get the sugar production quota in the EU and in essence decide whether to sell the sugar produced on the basis of the quota. Usually extra sugar from third countries has to be imported to satisfy European demand. Here, considerably customs tax is added to the price usually. Also the sugar world market price was higher in 2010 than sugar price in Europe, Uulits said.

Since there is no sugar production n Estonia, the sugar select here depend on how talks with foreign companies who have quota proceed. “In 2010 and 2011, there were problems with these talks and in certain occasions, foreign companies refused to supply Estonia with sugar,” said Uulits, explaining the high sugar price.

Thus the board did not ascertain cooperation harming competition between companies as the cause of sugar price increase.