Sugar beet growers hit out at €310m aid package

Irish sugar beet growers tonight claimed a €310m aid package to reform the industry was a black day for farming.

Following hours of tense negotiations at the European Commission, Agriculture Minister Mary Coughlan revealed €121m would be set aside for farmers who could not cope with changes.

But the Irish Farmers’ Association said the deal was totally inadequate and highly unsatisfactory.

The agreement includes compensation of €121m over the next seven years, a one-off payment of €44m for growers if production ceases in Ireland and a €145m payout to processors Greencore to assist restructuring.

John Dillon, IFA president said: “It was untenable for Agriculture Minister Mary Coughlan to hand over the bulk of the compensation to Greencore when she had presided over the wipe-out of the country’s 3,700 beet growers.”

But Ms Coughlan insisted the agreement would give farmers time and options to adapt to a more competitive environment.

“The deal has secured clear recognition and acceptance of the unique Irish circumstances and this was reflected in the very significant funding package which will accompany the implementation of the reforms in Ireland,” the minister said.

The agreement guarantees a drop of 36% in the price beet growers are paid for their produce, compared to the Commission’s demand for 39%.

Mr Dillon said the minister had failed to secure proper recognition for Ireland’s situation where the entire industry would be shut down.

And he was supported by other IFA officials, including Jim O’Regan, sugar beet chairman, who challenged the minister’s suggestion that beet growing would be viable over the next two years.

“While growers had received a cruel blow today, it was only adding further insult to injury by attempting to deceive them that they had a future as beet growers,” Mr O’Regan said.

Ms Coughlan insisted the package was a major improvement on the Commission’s original offer which would have brought sugar beet farming to an abrupt end.

“Farmers, machinery contractors and employees will all have to be taken into account in any restructuring plan. Any distribution of restructuring funds must be balanced and decided on the basis of economic proposals in consultation with the stakeholders,” the minister said.