The possibility of growing a 2006 sugar beet crop - which would keep the Mallow sugar factory operating for another year - will depend on a transfer of quotas between farmers, it has emerged.
While Irish Sugar would not comment after a meeting with the Irish Farmers' Association (IFA) yesterday, it was learned that two-thirds of the 3,700 beet-growers had told Greencore, which controls the company, they want to grow beet this year.
However, as the company claims it will need 1.1 million tonnes of beet for a successful campaign in 2006, farmers who are unwilling to grow will have to surrender their quotas to other farmers.
A statement by the IFA, following the meeting in Abbeyleix yesterday, said it and Greencore were exploring the options to secure a full crop of 1.1 million tonnes in 2006. The discussions, said IFA sugar beet committee chairman Peadar Jordan, include mechanisms to facilitate quota-transfer between growers ceasing production and those who would take extra tonnage.
"Time is of the essence and I am extremely conscious of the pressures on growers who have to make decisions within the next few days," said Mr Jordan.
Most farmers who have decided they do not want to grow beet are located in the midlands and were traditional suppliers to the Carlow plant closed down by Greencore over a year ago. They supplied over 600,000 tonnes of beet and held considerable quota tonnage.
Many may be reluctant to transfer their quotas to Munster and Wexford growers who could raise the crop at a profit because their delivery costs are less.
A major obstacle to quitting beet production was removed early this week when Minister for Agriculture and Food Mary Coughlan said farmers need not grow beet in 2006 to qualify for EU compensation. She designated 2004 as the reference year.
It is still not clear that Irish Sugar, with over 250 employees in Mallow, is committed to processing this year when there is €145 million in compensation from the EU for closing the plant under its rationalisation plan.