Sugar Industry in France

This paper analyses the French sugar industry and demonstrates its impact on the French economy. The development of the sugar industry began in the 18th century thanks to imports of sugarcane from overseas colonies. The production of sugar beet was initiated by Napoleon Bonaparte in the beginning of the 19th century. The industrial revolution contributed to the rationalization of production and helped France become the European leader. In the 1960s, France contributed to the Common Agricultural Policy project. The year 1968, when the CMO was founded, was important for the whole sugar industry. One of the reasons for growing market concentration became the principle of quota management. In 2006, a major reform of the EU sugar policy was implemented and this reform strengthened France's leading position on the sugar market. Nowadays, France is the world's 7th largest sugar producer and is number one in sugar beet production. For France, sugar is an important export article; the share of export on total production represents 45 %. The French sugar market is concentrated and dominated by three international groups. French specific is cooperative ownership and internationalization of sugar companies.