IFA secures sugar beet deal

IFA has given sugar beet growers the go-ahead to sign contracts for 2005, after concluding a two year price agreement and a four-year rail transport subsidy deal with Irish Sugar.

Sugar Beet Section Jim O’Regan said the transport subsidy schedule for Carlow growers will require re-calculation in each of the next four years, taking account of EU Reform, adjustments to the basic EU transport subsidy, and restructuring.

He said Irish Sugar has committed to the earliest possible establishment of a rail based beet reception centre in the Carlow catchment area. If the depot is not available for any part of a harvesting campaign, growers will be compensated for the cost difference between the hauliers’ road transport rate and the depot rate.

IFA has also agreed with Iarnród Éireann a composite rate on all beet transported by rail of €9.90/t, including VAT.

Mr O’Regan said IFA resisted Irish Sugar’s attempts to reduce the €5.49/t price premium in 2005, but it will reduce to €3.99 in 2006.

Martin Ryan, Director of Agri Business in Irish Sugar, said the company will work with all beet growers to ensure, as far as possible, a smooth transition to an extended 120 day beet processing campaign.