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12/10/07 - Sugar restructuring - Beet growers initiative scheme (updated)


 

Message updated: 15/10/07

 
At the September Agriculture Council, ministers reached agreement on changes to the sugar Restructuring Scheme, first introduced as part of the 2006 EU sugar reforms.

For the first time it will be possible for individual sugar beet growers to apply direct to the Restructuring Fund. From midnight on 30 October, an application period will open for growers to apply to The Rural Payments Agency to cease deliveries of quota beet for which they have a delivery contract, in return for EU compensation. The total of successful applications from growers will be limited to a maximum of 10% of the full quota allocated to the UK.

The EU regulation continues to allow Sugar Producing Undertakings (in the UK this is British Sugar) to apply to the Restructuring Scheme and the changes now increase the financial incentives for them to do so. Moreover, the new Council Regulation provides that if the sugar processor should lodge an application to relinquish a quantity of quota which exceeds the total (or the 10%) successfully applied for by the growers, then the processor’s application takes precedence and all the growers’ applications become null and void.

Full details of the Beet Growers Initiative Scheme agreed following detailed consideration in Brussels, will be published on the Official Journal later this month. .

This site will be updated with more detailed information of the application process once the full details have been agreed.