IFA urges beet growers to say 'yes' to Greencore

IFA has advised beet growers to answer 'yes' to the question of growing beet in 2006, when responding to letters sent to them by Greencore.

Martin Healy, a spokesman for midlands growers said on Tuesday that they would also answer 'yes', in order to protect their quota rights - even though they believe that growing beet this year is "flogging a dead horse" (The Midland Beet Growers have reversed earlier advice to members not to respond to Greencore, given by the group before the letters went out last week).

IFA's Sugar Beet Chairman Peadar Jordan warned growers they would effectively terminate their individual contractual rights with Greencore, by not answering the letter from the company, or answering 'no'. The legal advice to IFA was that terminating their contractual rights would be inadvisable in advance of finalisation of restructuring and diversification compensation for the EU sugar market reform.

"The final decision for growers on growing beet would arise when the actual contracts were presented by Greencore," said Mr Jordan.

Greencore has asked 3,700 growers if they want to grow sugar beet in 2006-2007 - but the IFA advice has effectively turned their letter survey of growers' intentions into a pointless exercise.

Growers situated nearer the Mallow sugar factory may wish to continue growing sugar beet, but they will have to risk an announcement later this month that Greencore will not process their beet. Their dilemma could be exacerbated today, when the EU sugar management committee is expected to announce how much the 2005-06 sugar output must be reduced in order to balance the EU sugar market.

A cut of 15% of the EU's total quota is expected, but weighted more heavily on member states with larger B quotas, such as France and Germany, with countries set to lose most production as a result of last November's sugar reform, such as Spain and Ireland, treated more leniently.

The Midland Beet Growers Association have re-iterated they won't grow their 30% share of the national beet acreage.

Spokesman Martin Healy said there is €7 per ton profit at most from beet this year, and growers would be better advised to fight for up to seven times that profit, which he says is available in compensation for ending sugar processing in Ireland. But a compensation package of up to €200m could have been swallowed up in the EU budget by next year, he warned.