Has anyone ever heard of this? if so what do you think can be done to solve this?

Looks like they have gone the American way, except with more noble reasons. Not like the American Sugar-beet lobby. So what part of it do you see that needs solving? It sounds like an economy trying to keep jobs at the expense of prices. Sound familiar? Except they have less worldly clout to throw around and things are becoming more globalized. To solve, work WITH the world markets and look to where you can improve. See where you are competitive, and make yourself more competitive there, and if you aren't competitive in sugar, let that industry die. Better a quicker death than making it long and painful.