January 20th 2001

Sugar Company rejects growers demands

By Des Maguire

The Sugar Company wants to roll over the existing price agreement with beet growers for another year rather than agree to any price increase, it emerged this week.

They made this proposal at a meeting with IFA sugar-beet negotiators on Monday when growers pressed their demand for a £4.70 a tonne price increase.

"The Company told us that they wanted to roll over the existing agreement against the background of future uncertainties in the undecided sugar regime reform and WTO negotiations," Willie French, chairman of the IFA's sugar-beet section said.

"Their proposal makes no advance on our price demand and I feel that the Company can do much better," he said. "Growers are bearing significant cost increases, the cost of beet production is going up and this cannot be ignored by Irish Sugar."

He said that the beet section would consider the company's position at its annual Mallow and Carlow Area board meeting scheduled for January 30th in Enniscorthy but the IFA price demand is still firmly on the table.

On the Sugar Beet Contracts Restructuring Scheme Willie French said that the beet section has got a commitment from Irish Sugar that all existing contract holders exiting beet growing through the scheme would receive confirmation within the next two weeks whether their nominee is acceptable or not. New growers will also be informed of their acceptance under the scheme.

A total of 251,000 tonnes, almost one fifth of the beet has been transferred under the restructuring scheme.