Hard work pays off as NFU welcomes decision on bid for quota compensation

The NFU has welcomed Defra's decision to accept the application to relinquish 13.5 per cent of the UK sugar quota in return for compensation. It follows eight months of NFU negotiation with Defra and British Sugar to find the best deal for UK growers.

The decision means that grower aid can be shared equitably, in a way that takes some account of growers affected by the earlier changes in the West Midlands and York areas. The deal has taken months to put together and will deliver the best possible deal to growers, UK processor and contractors alike.

NFU sugar board chairman John Hoyles said: "I am glad that our efforts and perseverance have paid off. We have had a tough time convincing the authorities that our plan deserved their support. The industry has stood united in support of its plan throughout. It is a shame despite the reform's original pro efficiency goals that the UK has had to give up any sugar quota at all.

"The compensation was designed to encourage the least efficient to exit. It didn't turn out that way and as we all now have to cut back by at least 13.5 per cent, it was critical that we mitigate the effects.

"Importantly, the agreement provides scope to pay compensation to sugar beet growers who stopped growing in the West Midlands and York, as well as to the majority who continue to grow beet. The approval also means that we save another potential factory from closure which could have been another casualty in this round of EU restructuring."