Beet growers face 39% price cuts

Ireland: Sugar beet growers could be facing the prospect of price cuts as high as 39% when the EU reform proposals are published in June.

A leaked internal draft of the proposals will send shockwaves through beet producers, according to Mairead McGuinness, Ireland East Fine Gael member of the European Parliament. Formal proposals are due to be published on June 22 by EU Farm Commissioner Mariann Fischer Boel, with agreement among farm ministers targeted for November.

The EU has been under increased pressure to propose a package of reforms after the WTO found EU subsidies for sugar production to be illegal following complaints by Australia, Brazil and Thailand.

Ms Fischer Boel has made securing an agreement on reform proposals a top priority ahead of a meeting of ministers from the WTO in December in Hong Kong.

Ms McGuinness said indications of deeper sugar price cuts coming from an EU Commission draft should come as no surprise, given the recent adverse ruling by the WTO on the EU sugar regime.

It appears the unacceptable proposal to allow for the transfer of sugar quota between member states will not now form part of the commission proposal. But beet growers will view with great concern the price cut, she said, given this will carry the burden of higher costs in transporting beet to the only Irish processing plant at Mallow.

Ms McGuinness said the commission is proposing a quota buy-up scheme.

A spokeswoman for the Commission in Brussels regretted the fact the figures had been leaked.