Partisia Contract Exchange has been used twice in 2008 and helped the Danish sugar industry adjust to the new sugar regime in the EU. The new EU regime provides much lower production subsidies, thus putting extra pressure on the sector to allocate production efficiently among the individual producers. The exchange made it possible to match buyers and sellers and settle a fair market price without compromising the confidential bids of the sugar beet growers. These bids reveal information about the growers’ valuation of production contracts and they are therefore reluctant to reveal this information.
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