Brussels, 11/05/2007 (Agence Europe) - The European Committee of Sugar Manufacturers (CEFS) issued a press release on Thursday 10 May calling on member states to make several additions to the rules put forward by the European Commission to encourage the sugar industry to abandons more sugar quotas (see EUROPE 9421). CEFS represents the interests of all European sugar manufacturers and refiners. CEFS Director General Jean-Louis Barjol said its wish list can be split into four sections:
Incentives to reduce quotas: CEFS is pleased that the Commission has accepted its request for 10% of aid to be given to producers and farm work companies, and takes note of the Commission's decision to pay a special extra payment to producers (€237.5 per tonne of quotas freed up during the 2008/2009 marketing year, paid in arrears). It also welcomes the measures to exonerate companies which give up some of their quotas in 2008/2009 from having to pay the €176/tonne restructuring tax for the amount of the quota withdrawn in the previous marketing year (2007/2008).
CEFS has reservations about the modalities proposed for the final compulsory reduction of quotas to be decided in February 2010 if required. The Commission suggests that companies which have cut their quotas by more than 60% will be exempt from the final reduction, whereas for other companies, the reduction will be calculated pro rata on quotas freed up under the restructuring scheme. CEFS argues that this would penalise countries which have reduced their quotas by more than 13.5% but under 60% and calls on the Commission to also provide compensation for lesser reductions in quotas in 2010, reductions of more than 13.5%.
CEFS wants sugar factories which decide to convert to producing biomass to receive 100% of the restructuring payment rather than the 75% suggested by the Commission. It also wants the payment to companies to be increased (and by more than 35%) when planters themselves decide to abandon quotas on their own initiative.
Fair treatment: Barjol explains that companies are furious at having to pay the full minimum price for sugarbeet whilst under the economic partnership agreements with ACP sugar producing countries, refiners have the option of paying less than the 100% reference price. CEFS wants the minimum price of sugarbeet to be adjusted under the inter-professional agreements, believing it unfair for refineries to be exonerated from any withdrawal of quotas. Over the third year of implementing the system, EU restructuring aid will be reduced to € 625/tonne. CEFS wants the aid to remain the same as during the first years, namely €730/tonne.
Subsidiarity: CEFS says the Commission should allow the industry to share out 10% of the aid for farmers at local level and modulate the extra payment of €237.5/tonne in line with needs (and the inter-professional agreements).
Technical corrections: CEFS asks the Council to clarify the price for withdrawing sugarbeet (depending on what becomes of the sugar). (lc)