Sugar cane quota extension will 'undercut' UK growers

The government's sugar cane quota extension could lead to the decline of UK sugar beet, NFU Sugar warns
The government's sugar cane quota extension could lead to the decline of UK sugar beet, NFU Sugar warns

NFU Sugar has criticised the government’s decision to extend its 260,000 tonne tariff-free quota for raw cane sugar imports for another three years.

This extension, coupled with the liberalisation of sugar in the UK-Australia trade deal, could lead to the permanent decline of the UK sugar beet industry, NFU Sugar warned.

It added that the government's decision would also continue to allow imports of sugar produced in ways that would be illegal in the UK.

The first year of the quota has seen more than 250,000 tonnes imported, according to HMRC, representing 97% of the 260,000 tonne quota.

Sugar imports from Brazil alone have increased 217% year-on-year. NFU Sugar said this was a "clear example of a country taking advantage of this quota to increase its sales to the UK".

Michael Sly, chair of NFU Sugar, said: “It is shocking that the government has decided to extend this quota, which quite clearly undercuts efficient UK growers.

"It’s incredibly concerning that the government has said the decision was based on evidence, yet none of it has been published.

"Growers will be left to assume it is the same inconsistent and contradictory justification that was used when the quota was introduced a year ago."

The results from the initial consultation regarding the introduction of the 260,000 tonne quota showed that 79% of respondents opposed the now-introduced tariff.

It also shows that the same percentage of respondents felt that any quota should take into account the standards used to produce the sugar, something the government has not introduced.

The UK is one of the most efficient sugar producers in the world, supporting thousands of jobs in the East of England.

Mr Sly said: “The government’s claim that the quota will have no impact on UK growers is clearly wrong, which is highlighted in the government’s own policy which says the quota ‘allows the importation of food products that have been treated with pesticides containing active substances that have not been approved for that use domestically’.

“Despite this clear recognition from government that growers will be undercut, this decision means the policy will not be reviewed for another three years and the impacts on growers will be ignored once again."

The NFU is calling for the government to keep this quota under regular review and to put in place requirements to ensure that imported sugar is "produced in ways that are at least equivalent to those expected of UK farmers".

“The government’s trade policy must allow us to compete on a level playing field with growers elsewhere," Mr Sly added.