MTK and Sucros agree on sugar production issues

Agreement does not yet guarantee continued sugar production in Finland

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The Central Union of Agricultural Producers and Forest Owners (MTK) and Sucros, the company that maintains Finland's only remaining sugar factory, reached agreement on Tuesday on the conditions for sugar beet cultivation and sugar refining.
      The agreement would impose a binding commitment of two years at a time on the farmers.
     
The agreement does not yet guarantee that the sugar factory in Säkylä will remain open. Farmers will first need to decide on whether or not they want to continue growing sugar beet under the terms that were ironed out in order to supply Finland's only sugar factory in Säkylä with the raw material that it needs.
      "The conditions are on paper, but the final result depends on whether or not the farmers agree to it, or if subsidies for giving up cultivation are seen as more attractive", says Sucros CEO Päivi Paakkarinen.
      The EU decided in late September to reduce sugar production in Europe, offering special subsidies for farmers who give up the cultivation of sugar beet.
      Finland's sugar farming quota is about 15,000 hectares of land. As farms growing sugar beet cover an average 12 - 15 hectares, about 1,200 farmers would be needed to continue cultivation.
     
The agreement tackles the thorny issue of transport fees for sugar beets. Transport costs from field to factory will continue to be paid largely by the farmers, but the aim is to reduce the costs by rearranging the transport system.
      In practice, minimising transport costs means that sugar beets would no longer be transported very long distances. This means that giving up cultivation is to be offered as an option primarily to farms that are furthest from the factories.
      Pekka Myllymäki, chairman of the MTK's sugar beet committee, says that the agreement establishes the preconditions for the continuation of operations of the Säkylä factory, and the continued livelihood of sugar beet farmers.
     
MTK will hold an advisory vote on the matter in early January.
      By the end of January it should be clear how many farmers want to continue farming sugar beet. At that time it will be seen if the Säkylä sugar factory will continue, or if sugar production will come to an end in Finland.


Previously in HS International Edition:
  EU decision endangers sugar production in Finland (27.9.2007)
  Finnish sugar production gets no support from European Union (26.9.2007)
  Danisco to close down its sugar factory in Salo (10.2.2006)
  EU sugar policies partially behind cancellation of Foreign Minister´s speech in Belgium (3.10.2007)
  Fate of Finnish sugar factory to be decided in spring (28.9.2007)

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