Commission welcomes success of EU sugar reform as restructuring process concludes

"I am pleased to say that the sugar reform has been a success," said Mariann Fischer Boel, Commissioner for Agriculture and Rural Development. "This was one of the centrepieces of my current mandate and it's gratifying that we are so close to our ambitious target. Our sugar sector was in desperate need of reform. More sustainable production and prices promise a competitive future for our producers."

In a press release issued today, Mrs Fischer Boel noted that the fundamentals of the EU sugar market were sufficiently healthy and that there was no need to impose an obligatory withdrawal of sugar for the current marketing year 2008/09. Mrs Fischer Boel also noted that a preventive withdrawal is not necessary for 2009/10 either. This assessment is based on very provisional estimates, notably for imports. The EU sugar market situation will be reviewed in October on the basis of updated estimates for beet and sugar production and for imports, and again in February 2010, to see whether there is a need for "preventive withdrawal" for the marketing year 2010/2011 or a "final cut" i.e. a further reduction of quota.

Indeed, the EU27 supply/demand situation does seem fairly balanced for the next couple of years, but as EPA and EBA sugar imports grow as investments in Africa, the Caribbean, the Pacific and other LDC countries bear fruit, the EU27 sugar balance may move from balance to surplus.