Copa-Cogeca has urged Member States to reject new EU Commission plans which would upset the EU sugar market balance and call into question the new CAP reform agreement.
The plans are set to be voted on at the next EU Management Committee meeting on February 27.
Copa-Cogeca Secretary-General Pekka Pesonen warned: “EU sugar prices have been falling on average continuously since January 2013, down 100 euros/tonne, whilst ending stocks of EU quota sugar are projected at their highest levels since 2007/8.
"The market is oversupplied and the world market price for white sugar does not even cover the production costs of the most competitive sugar producers worldwide. It is therefore totally unacceptable for the Commission to introduce more measures to flood the market with sugar.
"This would seriously disturb the market balance, put more pressure on the sector, threatening employment in EU rural areas. Any drop in market prices resulting from this measure would also only benefit the sugar users industry since the decrease is never passed on to consumers, causing only a further deterioration in farmers income which are already half the average level."
Wrapping up, Mr Pesonen said: “Under the new Common Agricultural Policy (CAP) reform, Member States agreed to maintain EU sugar production quotas until 2016/7 to provide some stability for the EU sugar market. The latest plans call into question those decisions. I consequently urge Member States to reject them when they meet this month."
A letter highlighting this was also sent to the EU Commission.
