EU reforms set to cost beet growers €150m - study
Deloitte Financial Advisers were commissioned by the Irish Farmers Association (IFA) to assess the impact of the radical reforms on the incomes of growers.
It predicted the reforms will bring about the inevitable close-down of sugar beet growing in Ireland and in consequence will result in the loss of a valuable income flow to growers.
"Greencore has indicated there are substantial risks attached to the processing of a 2006 beet crop, including an additional quota cut which they are estimating to be between 9% and 14%. Accordingly it is assumed that no crop will be planted during this year," it said.
The report said it is clear that sugar beet growing will no longer be viable in Ireland at the post-reform support price level, as the price will be significantly lower than the cost of production.
Beet growers need Agriculture Minister Mary Coughlan to allocate €106.6m of a restructuring fund to compensate them for the cessation of production and the surrender of the Irish sugar quota, the report added.
IFA president Padraig Walshe, presenting the findings at a press conference in Dublin, said there was an incontrovertible case for payment of the EU compensation to the growers who will lose their livelihoods.
"It is now a matter of political will to determine the allocation of the €145m of EU funds available to Ms Coughlan," he said.
Mr Walshe said a diversification fund provides compensation of €43.5m to growers, leaving a deficit of over €106m to be made up by the restructuring fund.
He called on Ms Coughlan to remove the pressure and uncertainty on farm families by announcing full compensation immediately.
"Beet growing has been the most profitable tillage crop and the country's growers have been devastated, first by the closure of the Carlow factory and secondly by the Brussels decision last November to shut down sugar beet growing in Ireland," he said.
Mr Walshe said he would be meeting the minister with beet growers' representatives this morning to present the IFA case.
He will emphasise the need for an immediate decision in order to avoid further stress for beet growers as they contemplate their options this spring.
Food Minister Brendan Smith has meanwhile told the Dáil it will be a matter for beet growers and Irish Sugar to make commercial decisions about sugar beet growing.
He was replying to David Stanton TD (FG), who had asked the minister to advise farmers and those working in the sugar beet industry on the situation regarding the growing and processing of sugar beet in 2006.
Labour TD Joe Sherlock, who wants a national forum set up to examine the future of the industry, said he was ruled out of order when he sought clarity in the Dáil on the precise impact of the reforms.
"The signals from Irish Sugar and the IFA are ominous. It would be a shame to allow an industry that is profitable to flounder without a fight," he said.
