Futures still sweet, insists BS

25 May 2001



Future’s still sweet, insists BS

By Edward Long

BRITISH Sugars factory closure programme will help UK sugar stay competitive without compromising processing ability, claims the company.

The loss of two of British Sugars nine factories last March, with another due to go next year, will be offset by extra investment in remaining factories, it claims.

This will boost throughput to minimise the impact on growers, insists BSs director of agriculture Chris Carter.

But growers fear extended processing campaigns, logistical headaches from longer journeys and a gradual erosion of haulage payments.

Around 2500 growers in Suffolk, Norfolk and Lincolnshire are directly affected by the boundary changes following the closure of factories at Ipswich and Bardney.

Kidderminster is earmarked to shut next year.

“We must reduce costs as we are trading in a very competitive market and the loss of these factories will continue our drive for increased efficiency,” says Mr Carter.

He said the EU industry is soon expected to be opened up to increased overseas competition and national quota could become more transferable.

“We must respond or suffer the consequences which could have a severe impact on growers.”

Over the past 25 years, growers have become much more efficient, with the average sugar yield doubling from 4.5t/ha to 9t.

Average daily slice across the EU is 8300t/factory. Ipswich, Bardney and the doomed Kidderminster facility all processed less than that.

Of the remaining six sites, only Alscott is left below the EU average.

“We have increased investment at Alscott, York and Wissington, but the extra capacity provided will not match capacity lost,” explained Mr Carter.

The balance will be taken up by extending the campaign which will now average 160 days compared with 85 in the rest of Europe, he added.

Not all growers affected by boundary changes due to factory closures will have to cart beet further, some will have a shorter haul, insists Mr Carter.

But to compensate for extra costs BS is contributing to transport costs on a sliding scale for the next seven years.

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