PRODUCTION QUOTA

SPAIN (SUGAR)
CONTENT

1. The fee
1.1 Implementation and Why?
2. Case (Sugar - Spain)
3. Decree
4. Application of microeconomics
Production Quota

¿What is Protected Liberalized

it? Market Market
The prices of goods and
It´s a restriction imposed by Intervention by the
government for pricing or
services are determined by
the Government to produce
a certain amount of production constraints, which the interaction of supply
production units, in order make the pricing not and demand, without the
to protect either the materialize freely by intervention of the
popular market or free interaction between supply government or any other
competition. and demand. external agent.
 HOW IS IT IMPLEMENTED?

Implemented by the State.

Imposing production quotas.
 Decrease the quantity produced.
 Restriction of quantities.
¿How was the European sugar
market?
From the protected market to the
liberalized
 v

SUGAR IN SPAIN
WHY THE FEE?
Why Spain?

The country produces about 1,200,000 tons /

year, of the which, 200,000 must be exported
because of the quotas allocated by the European
Union and that only allow Spain a production of
1,000,000 tons / year. Contrary to these figures,
current consumption of beet sugar in our country
ranges around 1,300,000 tons / year, which is
why Spain is forced annually to import 300,000
tons of sugar from third countries.
Order ARM / 2249/2009, of July 29, by which they are assigned
sugar and isoglucose quotas to producing companies They are
empowered in Spain. Regulation or (EC) No 318/2006

For Spain, the amounts set initially (year 2006)

amounted to 996,961 tons of sugar and 82,579
tons of isoglucose, by this measure the country
stopped producing 5.77 Mt (5.23 Mt of sugar, 0.22
Mt of isoglucose and 0.32 Mt of inulin). The
abandonment of the Spanish quota represents
9.97% of the community total (9.53% of the
abandonment of sugar and 34.91% of the
abandonment of isoglucose).
Microeconomics
application
As a result of the measure
the price rose and the
quantities decreased.
EXCERCISE
INITIAL GRAPH 1.200.000 MILLION TONS
PROCESSED 2006 TO EUR
85 PER TON
EXCEDENTE
1.200.000 MILLIONS OF TONS
SPAIN SETS THE FEE

1.000.000 MILLIONS OF TONS

NEW EXCEDENTS
IRRECUPERABLE EFFICIENCY LOSS

EC -A -B

EP +A -C

PIE -B -C
UNIVERSIDAD JORGE TADEO LOZANO

MICROECONOMIA

INGRID JHOANA ALZATE ROJAS Y

ANGIE SOFIA SANCHEZ RODRIGUEZ

Bogotá D.C ., Miércoles 20 de Noviembre 2019