Greencore points to risks in processing beet crop
Dr Sean Brady, managing director, said the company would like to process beet in 2006 but, before a decision is made, it must engage with its partners to see how the risks can be eliminated or mitigated.
“Over the next weeks, the company will continue its ongoing assessment of the market for sugar. It will engage with beet growers to establish certainty relating to getting a sufficient supply of beet to produce a full quota.
“We will also talk to our staff, who play a key role in delivering a successful sugar processing campaign. The outcome of these engagements will also greatly influence the immediate future of the business,” he said.
In a letter to beet growers yesterday, Greencore Sugar said there is still a lack of clarity on the precise impact the EU reforms will have on beet processing in this country for the coming year.
More certainty will follow the publication of the reform’s final legal texts and a decision by the European Commission on next year’s quota. However, competition throughout the EU sugar market is a major cause of concern. The market had been intensely competitive over the past two years, but deteriorated since the reform compromise was announced.
Greencore said it seems probable that the Commission will deliver a significant temporary quota cut in 2006.
Meanwhile, IFA president Padraig Walshe said beet growers have the full backing of all farmers for the 130m EU compensation, to which they are entitled for their loss of livelihood.
Mr Walshe said there was no doubt Greencore were prepared to blackmail the Government by processing beet for one more year in exchange for generous compensation that would come out of growers’ pockets.
