Farmers oppose sugar beet reform

Plans to cut EU sugar beet prices could mean job losses

Dozens of sugar beet farmers from the UK have joined a protest in Brussels against price reform in their industry.

They say hundreds of jobs could be lost if planned European Union price cuts of more than 40% go ahead.

European ministers want to cut subsidies so third-world farmers can compete within international markets.

Lincolnshire farmer Nick Wells said: "The scale of the price cut would mean a considerable number of growers going out of business.

'Shout for Sugar'

"The impact on jobs would be quite severe."

We will be moving from butter mountains to sugar mountains Renate Kunast, German Farm Minister

Mr Wells, chairman of the National Farmers' Union sugar beet committee, said: "We are in favour of reasonable reform because world trade is moving on, but the 40% price cuts are too drastic.

"There is an offer of partial compensation - which will go to the UK government for distribution- but we want to make sure the money goes to sugar beet farmers," Mr Wells said.

Farmers from around 20 countries joined the Brussels rally as part of the Shout for Sugar campaign.

German Farm Minister Renate Kunast said reform is needed because otherwise "we will be moving from butter mountains to sugar mountains".

The commission - which has been under pressure since the World Trade Organization ruled the subsidies were illegal last year - said reform is necessary if the industry is to thrive.

EU sugar prices are more than four times higher than the global market rate and are protected by massive import tariffs.

Brussels also pays out export subsidies to get millions of tons of sugar a year off its market, helping to keep EU prices high and support European farmers.

The plan is to cut the guaranteed price by 39% over two years from 2007 and offer a voluntary compensation scheme for producers forced out of business by the price cut.

EU farm ministers were not expected to give the green light to the reform plans yet, since a minority of at least eight EU countries oppose them.