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The Irish Farmers’ Association
IRISH FARM CENTRE, BLUEBELL, DUBLIN 12.
Tel: (01) 450 0266 Fax: (01) 455 1043 Email: postmaster@ifa.ie Web: www.ifa.ie
8 th February 2006
To: Sugar Beet Contract Holders
Beet Growers’ Losses Assessed at €150m
Dear Grower,
On your behalf, IFA commissioned Deloitte Financial Advisers, to assess beet growers’ losses arising from
EU sugar reform. The Deloitte assessment concluded that beet growers are facing a loss of €150m,
following the shut-down of beet production in Ireland.
This loss of income would arise even after taking into account the Single Farm Payment. Of the €150m
loss, €43.6m will be compensated through the Diversification Fund. (€43.6m = €32.50/t contract beet
approximately.)
Deloitte Financial Advisers conclude that the remaining loss is €106m. IFA is demanding that the
Minister for Agriculture Mary Coughlan TD pays this compensation directly to growers from the
Restructuring Fund of €145m., established by Brussels for this purpose. The compensation for the loss of
your beet contract will be calculated per tonne, and the Deloitte estimate of €106m is equivalent to €79/t
beet approximately.
The Deloitte assessment, which follows in this document, sets out the impact of the sugar reform decisions
on the beet price and on growers’ incomes in Ireland. It demonstrates that sugar beet production will be a
loss-making enterprise from 2007/2008 onwards.
The precise costings and margins in the Deloitte assessment are set out in response to a request to IFA
from the Minister of Agriculture to calculate the income loss to growers.
The draft Council Regulation on the Restructuring Scheme states that while an amount of 10% is
earmarked for growers, Member States are entitled to increase this percentage based on an economically
sound case, taking into account the losses resulting from the restructuring process.
In Ireland’s case, beet growing which was the most profitable of tillage crops will be permanently lost, and
therefore the case for compensation is irrefutable.
As you are aware Greencore is claiming losses of €250m for the closure of the industry. You are also
aware that Greencore closed the Carlow sugar factory in January 2005, and is therefore ineligible for
compensation under the EU restructuring regulation.
President: Padraig Walshe General Secretary: Michael Berkery

It is now a matter of political will to determine the allocation of the €145m of EU funds available to
Agriculture Minister Mary Coughlan TD. Make your own case to your local TD.
We met with Minister Coughlan last week, and emphasised to her the need for an immediate decision on
the compensation to avoid further stress and trauma for beet growers as you contemplate your future
options this Spring.
Following a meeting in Brussels on Monday last between the Member States and the EU Commission, the
Department of Agriculture has stated that the clause in the draft regulation requiring growers to deliver
sugar beet in the year prior to exiting the industry has been changed. We now understand that the Member
State will have the discretion to determine the relevant period to qualify for the restructuring fund.
The Minister has accepted the IFA proposal to use the average contract beet tonnage of 2001, 2002 and
2004 as a reference period to qualify for the decoupled Single Farm Payment.
The Minister has stated that the Irish sugar industry will not have to pay the €25m restructuring levy if a
crop is grown in 2006, and she has promised to have clearance on this issue at the Council of Ministers
meeting on February 20 th .
We have also had a lengthy meeting with Greencore Chief Executive David Dilger and senior
management, who are considering the possibility of beet growing for one more year - 2006. They stated
to us that they would require almost 100% delivery of the full sugar beet contract by growers.
The company has not moved beyond the beet price offered in December for the 2006 crop. Greencore are
proposing to pay €36.85/t beet at 16% sugar. This is made up of the minimum EU beet price of €32.86/t
plus a payment from Irish Sugar of €3.99/t, already agreed with IFA in March of last year. Greencore
have estimated that they would need to reduce the transport subsidy paid to growers by 31%. (i.e. average
reduction of €1.70/t beet)
It was made very clear to Greencore that they will have to come forward with a more realistic price
package, including transport, to ensure delivery of a full beet crop in 2006.
We will be meeting Greencore again in the coming days to establish the company’s final position and the
full package they will be offering to growers for the 2006 beet crop.
Yours sincerely,
Padraig Walshe
Peadar Jordan
Chairman
Sugar Beet Committee