Finnish sugar production gets no support from European Union

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The European Parliament is not willing to support European sugar beet growers, which is likely to mean the end of sugar production in Finland.
      In a consultative vote on the European Commission's plans for speeding up the reform of the sugar sector, the EP decided on Tuesday that it will increase financial incentives to sugar beet producers in order to encourage them to give up their sugar beet fields more quickly.
     
The reform launched in 2006, which was meant to restore the balance to the European sugar market by cutting prices and production, has not produced all the desired effects.
      In May 2007, the European Commission unveiled a package of proposals seeking to make this regime more attractive to encourage producers to leave this sector.
      While supporting the Commission’s goals, MEPs suggested that the compensation granted to those beet growers who surrender part of their quotas should be increased.
     
The reason for the overhaul of sugar production within the Union is reported to be the overproduction of sugar in Europe, and until now, Finland has supported the proposed reform of sugar production.
      The Finnish sugar sector is now afraid that following the restructuring the production of sugar beet would cease to be viable in Finland, and Finland’s only functioning sugar factory - Sucros Oy, located in Säkylä near Pori - would be closed down.


Previously in HS International Edition:
  Danisco to close down its sugar factory in Salo (10.2.2006)
  EU allows Finland to pay special compensation for sugar farmers (25.11.2005)
  Sugar beet growers concerned at EU plans for production and producer prices (23.6.2005)

Links:
  European Parliament - Sugar: more compensation for restructuring, say MEPs

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