Brussels, 10/01/2014 (Agence Europe) - EU agricultural organisations fear that the European Commission will once again, for the marketing year 2013-2014, take temporary supply measures for the Community sugar market. In their view, such a decision is pointless and would have regrettable consequences.
The possible setting in place of the temporary sugar market management mechanism in the spring is rejected by the EU agricultural organisations and cooperatives within COPA-COGECA. They say a decision along these lines that the European Commission could take this month would have several adverse consequences, when its own services have noted that the Community average sales price for sugar has been dropping since April 2013. Additional supplies to the EU market would entail a rise in the sugar stock under quota at the end of the 2013-2014 harvest year, while this is already at the highest level since 2007-2008, the agricultural organisations say. Furthermore, the cost of storage end 2013-2014 would hamper the competitiveness of the sugar beet sector. Another foreseeable consequence, the organisations say, is the erosion of trade preferences recently granted to third countries (Peru, Colombia and Central America), which would be to the advantage of Brazil, whose market shares in the EU are steadily increasing. (LC/transl.jl)