WP 01/050 - Key Issues facing Sugar Industries in the Southern African Development Community

Michael Matsebula

Date of Publication: 
May 2001

The objective of this working paper is to highlight the major issues facing sugar industries in SADC. This is achieved within a framework that recognises the existence of distortions in global sugar markets. To this end, a conceptual framework whose central pillar is the existence of market distortions is presented. It is followed by a description of the characteristics of the SADC sugar industries and the kind of distortions that they face in the real world. The main features of the SADC Sugar Cooperation Agreement as well as a consolidated list of key issues facing the SADC sugar industries is presented. The paper finds firstly that there is a strong case for special sugar trading arrangements. Secondly, mutual benefits can be generated from cooperation in accessing foreign markets. Thirdly, high exposure to world markets will improve market access within SADC. Finally, the paper brings together issues facing the SADC sugar industries that can be best handled at industry and regional levels.

Download Working Paper: DPRU WP 01/050