Warning over EU plan to reform sugar industry

Proposals on the reform of the European sugar industry, which the IFA claims would end production in Ireland, were discussed …

Proposals on the reform of the European sugar industry, which the IFA claims would end production in Ireland, were discussed at a meeting last week with Minister for Agriculture Mary Coughlan.

The Irish Farmers Association said the proposals, which were leaked in Brussels 20 days before an announcement was due, would devastate beet growing here.

If the proposals were implemented, Irish beet farmers would face a 47 per cent price cut. Speaking after the meeting, Jim O'Regan, chairman of the IFA's sugar beet committee, said he believed the Minister was in no doubt of the challenge that lay ahead.

"I am confident that she will reject the EU approach and fight for a viable sugar beet industry in the future," he said.

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"The leaked proposals would cut the minimum EU sugar beet price to €25.05 per tonne by 2007 and make beet growing totally unviable in Ireland."

"Minister Coughlan must insist on a viable future for beet growing in Ireland, which is the cornerstone of the Irish tillage sector, and that means rolling back these unsustainable price cuts," he said.

Mr O'Regan said any EU restructuring scheme should be voluntary and provide full compensation directly to Irish growers who give up their livelihood in beet, including growers affected by the Carlow factory closure earlier this year.

Beet growers have been expressing concern that any compensation which might come Ireland's way, because of reductions in supports to bring about a world trade agreement, should go to them rather than to Greencore, Ireland's only sugar beet processor.

Mr O'Regan said he had received assurances from the Minister that it was inconceivable grower compensation funds would go to the Greencore company, formerly the Irish Sugar Company.