EU proposals ‘will hit beet growers’

GROWERS’ income per tonne of beet will drop from €19/t in 2004 to €9.70/t in 2007 under the EU sugar reform proposals and that includes the proposed new direct payment, the IFA has claimed.

Sugar Beet Section chairman Jim O’Regan said the crop provides a vitally important income for beet growers.

This includes more than 1,000 Cork beet growers and their families delivering to the Mallow sugar factory at a time when farm incomes are already under extreme pressure.

“Based on the current Teagasc cost of production figures for sugar beet the proposed price cuts mean there would be no income from the business of beet growing. The only income would come from the direct payment.”

Mr O’Regan said the proposed price for sugar beet in 2007 of €27.40/t is in actual fact €0.60/t lower than the current costs of sugar beet production at €28.00/t based on growing the crop on ones own land.

There is also no reference in the proposals to Ireland retaining its regional allowance which is worth €1.90/t beet or €2.5 million to farmers annually.

“Based on the EU Commission proposals the loss in output value to all beet growers will be €19 million in 2005 and in 2006 and will increase to over €26m in 2007.”

Mr O’Regan said that in addition to the price cuts in the reform proposals, growers were also facing a further income drop of almost €4 million with a 16% cut in the national sugar quota, with no proposed compensation.

The proposals provide for the reform to begin in 2005 instead of 2006, as provided for under the current regulation.

Farmers are rejecting these price and quota cuts as totally unsustainable. He assured growers the IFA was mounting a vigourous campaign in defence of the livelihoods of 3,700 beet growers.