ADVERTISEMENT

EU agriculture ministers approve changes to sugar restructuring scheme

Sights

The European Union agriculture ministers on Wednesday approved changes to the sugar restructuring scheme that will reduce sugar production in the EU to sustainable levels.

The restructuring scheme was a key element of the 2006 reform of the Common Market Organization for sugar, offering producers who would be uncompetitive at the new lower price a financial incentive to leave the sector. However, much less quota was renounced during the first two years of the scheme than anticipated and changes had to be made to make it more attractive.

The main changes approved Wednesday by the ministers, who are meeting in Brussels, are as follows:
*The percentage of the aid given to growers and machinery contractors should be fixed at 10%, but growers who renounce quota will get an additional payment. For the 2008/2009 marketing year, growers will receive an additional payment of €237.5 ($325) for each ton of quota renounced.
*Beet growers will be allowed to ask directly to renounce quota, up to a limit of 10% of a factory’s quota.
*A two step application for renouncing quota for 2008/09. In the first step companies must first renounce at least as much quota as specified in the preventive withdrawal decided in March this year in order to be able to participate in the second step. Companies will know after the first step how much they risk their quotas being cut in 2010 if they do not participate in the second step.
*The formula for the final quota cut proposes a large deduction of quota at the company level with a view to encouraging companies to participate in the voluntary restructuring scheme.

The European Commission has said it believes that the changes should allow the renunciation of about 3.8 million tons of sugar quota in addition to the 2.2 million tons given up so far. If insufficient quota has been renounced by 2010, the Commission will make compulsory quota cuts. The level of these cuts will vary depending on how much quota each EU member state has renounced under the restructuring scheme. European Commissioner for Agriculture and Rural Development, Mariann Fischer Boel, expressed her delight that the ministers had approved these vital changes to the restructuring fund. “It is a key element of our reform, offering financial incentives to factories which can’t compete at the new lower prices. I believe that the changes agreed today will encourage many more companies to give up quota. I urge them to take this chance,” she said. (people.com.cn)

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.