In May 1988 it was announced that as from 1 July 1989 the import embargo on raw and refined sugar would be removed. The objective of this research report is to outline the effects on the Australian sugar industry of the removal of the sugar embargo and propose a strategy which would be appropriate for the sugar industry to follow in the post embargo environment.
This research report is a synthesis of the arguments put forward by participants within the sugar industry as well as government and other interested parties. These views were collected by both personal discussion, and written reports from various organizations. These views are analysed and as a result appropriate strategies are formulated.
The major conclusions which are reached in the research report are firstly, that the use of the sugar embargo as a price stabilizing mechanism is inefficient and in fact becoming less effective over time. Secondly further deregulation of marketing and production controls is required. Thirdly the tariff regime proposed by the Federal government may be inappropriate for the sugar industry. And finally, the sugar industry needs to be more outward looking and may need to redefine the "business" it is operating in.