Sugar industry could be wiped out

The entire sugar beet industry in Ireland could be wiped out by European Commission proposals to reform the sector, the IFA warned yesterday when it announced that it is planning a major campaign on the issue.

John Dillon, president, speaking at a lunch on the fringes of Dublin Horse Show, said the one important CAP-supported sector that has not been reformed to date is sugar.

A 37% price cut to farmers with only 60% compensation, a 16% quota cut with no compensation, and potential movement of production between member states is proposed.

Sugar beet from some 3,800 growers is processed at Irish Sugar factories in Mallow and Carlow, which employ 450 full-time and 200 part-time workers. Mr Dillon said he expects that all sectors of the sugar sector in Ireland, including the trade unions, will be working to defend the industry.

Mr Dillon said there have been major changes to agricultural policy at EU and world level in the past 18 months, culminating in the WTO framework agreement in Geneva last week, but much remains to be negotiated in the next 18 months.

IFA chief economist Con Lucey said the European Commission is proposing a single rural development fund. This will cover REPS, disadvantaged areas payments, early retirement, forestry and on-farm investment schemes, installation aid and LEADER. It will also cover the rural develop-ment measures introduced under 2003 CAP reform.

Mr Lucey said these crucially important schemes are currently worth about €700 million annually to Irish farmers.