Sugar reform must not PUNISH efficient producers, says NFU

The NFU has backed EFRA Committee Chairman, Michael Jack, in his calls for the Government to: "Ensure that Britain's natural advantage as a sugar beet producer is not lost in the final outcome" of reform of the sugar regime.

In a report released today the Committee has expressed concerns that the reform proposals: "could unfairly affect British producers" if left in their current form.

With the EU Council of Ministers to decide on the future of the sugar regime this month the NFU has backed these calls and emphasised the need not to penalise Europe's most efficient growers.

The NFU has been lobbying the UK Government and European Ministers to reject a compulsory quota cut in favour of the voluntary restructuring programme proposed by the European Commission.

If the benefits of this proposal are to be fully realised member states must agree to decouple compensation payments immediately so that inefficient growers are not discouraged from leaving the sector. The commission must also ensure price cuts are not so severe that they make production unprofitable for the best producers.

NFU sugar board chairman Mike Blacker said: "There is a need for reform. I've always accepted that, but we need this issue to be resolved swiftly. Lingering uncertainty is leading many growers to question their future in the sector. This uncertainty is not surprising as the current changes would see support payments in the sugar sector cut by 39% over the next two years.

"Most beet farmers believe the rapid rate of reform under the current proposal will not give them enough time to adjust their business plans. This is a particular problem because for many the profit from sugar beet is currently offsetting losses in other arable areas.

"The NFU will continue to put forward its case in Brussels for changes that benefit Less Developed Countries without unduly penalising efficient British producers."