Negotiations to reform EU sugar policy may deplete Irish industry

THE negotiations on the proposals to reform the European sugar regime will be tough, according to Agriculture and Food Minister Mary Coughlan. She made the prediction as fears intensified that the revised EU proposals, due to be published on June 22, could wipe out the sugar industry in Ireland. Adding to the anxiety about the potential impact of a more radical than anticipated reform is a recent ruling by the WTO that the EU was illegally pushing subsidised sugar on to the world market.

Minister Coughlan said Ireland, unfortunately, does not have as many of the member states supporting it as it would have had in normal circumstances. She said she had spoken with the French and the Germans, in particular, and with the British, to try and press upon them that Ireland has been through a difficult time in sugar and that it had consolidated manufacturing down to one site. “We always knew that the WTO ruling would have an impact on the final decision on the sugar regime and we are to look carefully at that.

“But, as it stands, the present proposals are not acceptable to me and many other member states and we will have to see a compromise. Particularly, my concern would be on price and quota.” Minister Coughlan said she was concerned that 20% of Ireland’s sugar capacity has now been lost to French competition.

“We are not going to have a viable sugar industry if we do not buy Irish sugar. We must try and get that message across. “Industry, both manufacturing and retail, hopefully will be able to support the Sugar Company in purchasing Irish sugar as opposed to purchasing from elsewhere,” she said.

Irish Sugar chief executive Dr Sean Brady said the WTO ruling further illustrates the reality and scale of the threat, which faces the sugar industry, not only in Ireland, but across Europe. “Our decision in January to rationalise sugar manufacturing in this country was taken in response to increased competition in the marketplace and the potential impact of EU regime reform.

“This verdict will undoubtedly have an influence on the reform proposals presented this summer. In light of that, Irish Sugar’s decision to rationalise the industry is timely.

“Future viability is our objective and consolidating sugar manufacturing at one site in Mallow will help achieve this. Irish Sugar is making a considerable investment in upgrading our Mallow facility to world-class standards and we are committed to continue manufacturing sugar in this country for the foreseeable future.”

IFA Sugar Beet Section chairman Jim O’Regan, IFA, called for a new policy strategy amongst beet growers across Europe to fight reform proposals, said the only viable solution for beet growers in all member states is to reject the Commission’s 37% price cut and negotiate fixed tariff quotas with the least developed countries.

“For the first time in the EU, beet growers are at the cross-roads of CAP reform and their viability is at stake. The current proposals are totally unsustainable for Irish growers. “Ireland is one of the peripheral countries that the EU Commission wants to sacrifice for the benefit of the central EU countries in order to do a deal in the WTO. Irish beet growers will not be pushed aside,” he said.