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Peadar Jordan has been growing sugar beet on his farm amid the rolling Carlow hills for 35 years but fears it may not be for much longer if EU proposals for sweeping reform of the industry go ahead. Along with Ireland's 3,700 other beet growers, Jordan has been shaken by leaked EU documents suggesting Brussels is planning to cut the minimum beet price by 42 percent from 2006, a move that could wipe out the industry in several countries.
"At the prices being proposed, I see no optimism that we could retain any level of sugar industry in Ireland," said Jordan, surveying the perfectly straight drills of crinkly green sugar beet on his 200-acre farm. "It's very ominous."
The cuts would reduce the price paid to Irish growers to 25 euros ($30.30) per tonne of sugar beet from the current 47 euros/tonne, he said, rendering production "totally uneconomic".
Irish growers in County Carlow, in south-east Ireland, were already reeling from the decision in January by the country's sole sugar processor Greencore to shut its Carlow factory, blaming looming EU reform and increased competition.
"We're now 100 miles further away from the only remaining sugar factory (in County Cork) and transport costs are very expensive," Jordan said.
Jim O'Regan, national chairman of the sugar beet section of the Irish Farmers Association (IFA), believes the new regime would spell disaster for the Irish industry - identified by the EU as being most vulnerable, along with Italy, Greece, Portugal and parts of Spain.
"Who can be optimistic about a price cut of 42 percent? If the cuts go ahead as proposed in the leaked document the industry will be unviable in Ireland - it's as simple as that."
However, O'Regan thinks there may be enough resistance around the eurozone to make the EU reconsider.
"The EU is adamant it won't U-turn on this but if there is a strong blocking minority - and I think even the countries that would be expected to survive - France, Germany, Holland and so on - will realise the cuts are too severe and their industries would not be sustainable. "I believe the price cuts as currently proposed will be rejected," he said.
Ariculture Minister Mary Coughlan has pledged support for the IFA in fighting the reforms but acknowledges it will not be an easy task to have them amended.
The European Commission is due to issue its official reforms proposal next week, to be thrashed out by EU agriculture ministers. If the reforms proceed, the IFA will demand the EU provides full compensation to growers or an alternative crop.

Copyright Reuters, 2005

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