EU Sub-Committee to hold third evidence session into EU sugar regime

A House of Lords EU Sub-Committee will hear the views of leading representatives from the UK sugar industry on Wednesday 27 June 2012, as part of the third evidence session of the committee’s follow-up inquiry into the EU sugar regime.

The House of Lords Agriculture, Fisheries, Environment and Energy EU Sub-Committee will hear Tate and Lyle’s president Ian Bacon, Nestlé purchasing (direct materials) head and UK Industrial Sugar Users Group (UKISUG) chair Tim Innocent and UKISUG trade policy executive Dominic Goudie.

The EU sugar quota regime currently limits annual sugar output to 13.8 million tons, compared with annual consumption of about 16.5 million tons, to protect farmers’ incomes. In October 2011, the EU proposed to abolish sugar quotas starting from 30 September 2015, to lower sugar prices and reduce shortage.

To evaluate the proposal, the committee will question the representatives from the sugar industry on various issues, including UKISUG’s ideas on ways the EU might resolve tensions between sugar for food and non-food purposes, and whether the 2005 reforms improved the sugar industry and its prospects.

The panel will hear from Ian Bacon about the future of 850 jobs at Tate and Lyle’s plant in east London, and whether industrial users are assured of a fair price for refined cane sugar from the company.

Nationals Farmers Union (NFU) chairman William Martin urged the committee last week to extend sugar quota until 2020 in order to secure the rights of the growers.

Several EU governments, including leading sugar beet growers France, have expressed similar opinions.

Europe’s leading industrial sugar users have however asked policymakers not to extend the deadline, blaming the system for sugar shortages and rising prices in the continent.

In order to abolish production quotas, the proposal will have to be approved jointly by EU governments and the European Parliament.

The House of Lords Agriculture, Fisheries, Environment and Energy EU Sub-Committee is responsible for considering all aspects of EU policy in agriculture, fisheries and the environment.

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Image: The EU Sub-Committee will question the sugar industry representatives on the proposal to abolish sugar quotas beginning in September 2015. Photo courtesy of: Lauri Andler.