9 comments on “Timmy elsewhere

  1. Ebola spreads in Africa, and Dr Malhotra is distraught over sugar. A First World Problem.
    “Problem” in quotes.

  2. One, a guaranteed one, much higher than a free market price, is only available if you have quota to go with your sugar beet.

    N00b here. Could you explain what it means to have quota to go with something?

  3. @James

    The EU allocates the UK a quota, the UK allocates the farmers a share of the quota.

  4. Sure, I get that. I think, after reading the article again, it looks like there isn’t actually a limit on sugar production in the EU, but farmers have to choose if they want to be part of a quota system or not, determining what they’re paid for their produce. Sound right?

  5. but farmers have to choose if they want to be part of a quota system or not, determining what they’re paid for their produce

    No – there is a set price for sugar produced within the quota system, which is higher than the market price for sugar produced outside the quota. Farmers can produce within and without quota. Although I expect there is a large and well-paid inspection regime in place to fine farmers who produce in both modes.

    If quota is eliminated, so is the set / guaranteed price. By basic economics, production will fall (if not immediately and only on average.)

    But IanB still scores.

  6. @SE

    I doubt it needs an inspection regime. When the farmer takes his lorry-loads of beet to the sugar factory, they will weigh it & assay for sugar content. If he sends more than his quota (which the sugar factory would have a record of), then he gets paid quota price up to his quota limit & the lower price thereafter. Probably farmers aim to sow a bit more than quota to cope with the vagaries of weather. They could always use above-quota beet as cattle food, though I’m glad I’m not a cow – raw beet has a dreadful bitter after-taste!

  7. I doubt it “needs” an inspection regime either.

    But we are talking about an opportunity to extend the acquis communitaire (sp?) and employ additional bureaucrats. What’s there not to love.

    There may have been slight sarcasm involved in this post and its predecessor. But I’m not sure that yet has to be subject to trigger warnings?

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