Brussels, 21/11/2006 (Agence Europe) - During the Agriculture Council of 20 November, Agriculture Commissioner Mariann Fischer Boel announced the definitive renunciation of nearly 1,150 million tonnes of sugar quotas for 2006/07, the first year of application of the sugar reform decided one year ago. The quantities renounced amount to 778,737 tonnes in Italy, 199,260 tonnes in Ireland (i.e. the whole national quota), 93,118 tonnes in Spain, 42,562 tonnes in Sweden and 35,218 tonnes in Portugal. For the year 2007/08, requests for aid have already been made for the renunciation of 41,500 tonnes of additional sugar quotas, including 24,890 tonnes in Italy and 16,678 tonnes in Spain. To this must be added requests for renunciation of 320,716 tonnes of inulin syrup, including 215,245 tonnes in Belgium, 80,950 tonnes in the Netherlands and 24,521 tonnes in France. In total, sugar quotas renounced amount to 1.190 million tonnes and to 320,716 tonnes for inulin.
During a press conference, Ms Fischer Boel called on EU sugar producers to make a greater effort to restructure the sector, taking advantage of Community subsidies. “The quantity renounced so far is far below our expectations when we drew up the reform”, said the Commissioner, with reference to the requests amounting only to 700,000 tonnes for 2007, compared to 1.5 million tonnes for 2006. She said the aim of the reform was to get rid of 6 million tonnes of sugar over the four years during which the reform is implemented, saying the Commission expects rapid restructuring: 1 million the first year (target exceeded with 1.5 million tonnes) and 5 million the second (although requests currently amount to only 700,000 tonnes). Ms Fischer Boel said “sugar producers who are not competitive should get out now” and take advantage of the funds offered for restructuring, which are higher the first years in order to encourage them to leave the sector (€730 per tonne). If production does not decline sufficiently over the period foreseen for reform, i.e. until 2010, “restructuring could be painful” after this as it will no longer be compensated for by subsidies, the Commissioner warned.
The Commission stated that sugar surpluses are expected to rise to 4.5 million tonnes for the harvest year 2007/08, corresponding to 25% of the quotas allocated to Member States. Stocks could reach 8.7 million tonnes by 30 September 2008, if only 700,000 tonnes of sugar disappear. (lc)