Euro plans may stifle beet growers

Proposals in a leaked European Commission document on the reform of the sugar sector would drive Irish beet growers out of business, the IFA has warned.

Sugar beet section chairman Jim O'Regan said the proposals provide for beet price cuts of 25% in 2005 and 2006 and a 37% cut in 2007, along with a European quota reduction of 2.8m tonnes or 16%.

"Farmers are rejecting these price and quota cuts as totally unsustainable.

"These proposals are draconian and would put an end to sugar beet growing in Ireland, which has been an important rural industry for almost 80 years," he said.

Mr O'Regan said the proposed 60% compensation for the beet price cut is inadequate and the IFA is demanding 100% compensation for any price and quota cuts imposed in the reform.

He dismissed comments by stockbrokers that beet growers are in a position to produce the crop profitably at 30% less per tonne.

"Stockbrokers should not be hoodwinked by Greencore," he said.

"The livelihoods of beet growers are far more important than protecting the high profits of sugar processors," he added.

Mr O'Regan called for a united front from the entire sector in resisting the EU proposals.

He warned that any reduction in the current EU sugar price would damage the whole sugar industry, with 3,700 growers, 500 employees and hundreds of associated jobs dependent on it.

"Sugar beet provides a vitally important income for dedicated Irish growers at a time when farm incomes are already under pressure," he said.