Brussels, 03/11/2015 (Agence Europe) - On Sunday 29 October during their social dialogue meeting, the European Federation of Trade Unions in the Food, Agriculture and Tourism sectors (EFFAT) and the European Association of Sugar Producers (CEFS), adopted their joint demand for the establishment of a restructuring fund to mitigate the social impact of the current sugar industry's unprecedented crisis.
The two organisations explained that a high level of supply in previous campaigns, the absence of a level playing field with third countries like India, Brazil and Thailand, and the prices' downfall close to the minimum threshold are threatening the viability of the sugar sector, putting thousands of jobs at serious risk. The current situation, coupled with the decision of the EU to dismantle quotas in 2017, entail social consequences that the EU institutions need to quickly address.
Against this background, EFFAT and CEFS are calling for a Restructuring Fund to support sugar operators “that have already made substantial efforts and expended considerable resources to adapt to a changing market”. Such a fund would serve to: Mitigate the unavoidable social impact of further restructuring and compensate, in part, the losses of those undertakings, beet growers and machinery contractors due to closures and loss of value of investments for the industry; Ensure that all workers have the opportunity to develop their skills and competences and aid movement between companies and between sectors where necessary; Support the promotion of alternative activities to sugar production and beet cultivation, allowing keeping economic revenue in rural areas.
EFFAT and CEFS stress that the EU sugar sector has been - and remains - a significant contributor to the EU's budget (last year this amounted to €162.6 million). Equally, the Commission adopted exceptional measures (import tenders, release of out-of-quota sugar) to supply the EU market with additional amounts of sugar; these measures provided the EU budget with an additional €453 million. (Original version in French by Lionel Changeur)