Five more years for sugar regime

23 May 2001



Five more years for sugar regime

By Philip Clarke, Europe editor

SUGAR growers can look forward to another five years of quotas and guaranteed prices, after the European Union extended the existing regime.

After months of haggling between European agriculture ministers and the European Commission, a compromise was reached on Tuesday (22 May).

The Commission had wanted an extension of only two years. But most member states had favoured maintaining the status quo.

It was finally decided that the regime will be maintained until 2006.

The deal will see sugar quotas permanently cut by some 115,000t a year, leading to a 1% drop in contract tonnages for individual growers.

Storage aids to processors, which help finance the orderly marketing of sugar throughout the year, will also be phased out.

This could have the effect of destabilising prices for “C” beet if more is put on the world market earlier in the season.

Growers in Italy, Spain and Portugal will continue to benefit from national aids, while Finland will be able to introduce a state-funded storage programme.

Crucially, European farm commissioner Franz Fischler won the right to make further studies, with a view to bringing forward fresh proposals for 2003.

“This will give us a better insight into what needs to be done to allow proper competitiveness in this sector,” he said.

But quotas and support prices and likely to stay until 2006, when the EU market will be opened to sugar imports from the worlds 48 poorest countries.

• Brussels reassures on sugar, FWi, 06 March, 2001
• EU sugar plan to cost 23,000 jobs, FWi, 21 November, 2000
• Sugar regime reforms disastrous, FWi, 10 October, 2000
• EU proposes sugar quota cuts, FWi, 04 October, 2000
  

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