Transcript Task Force on Nutrition Policies

European Committee of Sugar Manufacturers
SECTORAL SOCIAL DIALOGUE COMMITTEE
FOR THE SUGAR INDUSTRY
PLENARY SESSION
28 February 2011
Marie-Christine Ribera, CEFS Director-General
OVERVIEW
I. Industry Response to the Sugar Reform
II. The EU Sugar Market 2010/2011
III. The Court of Auditors Special Report
IV. CAP After 2013: CEFS Priorities
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I. EU Sugar Reform Agreement of
2006
 Most challenging and radical reform in the
history of the Common Market Organisation for
sugar:
 Sugar reference price cut by 36%
 Beet price cut over 40%
 Quota cuts by one third
 Exports cuts from 6-8 MT to 1 MT
 Doubling of imports
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I. Industry Response to the Reform
 EU Price Cuts: €3 to 4 billion reduction per year
of the bill paid by customers
 EU Sugar Quotas:
 Ambitious restructuring scheme
 EU quotas reduced by nearly 6 million tonnes
 5 countries have completely closed their sugar
industry
 6 additional countries have lost over 40 % of their
national quotas
 Major driver to reduce costs, increase
efficiency and rationalise across EU industry
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I. Industry Response to the Reform
 Factory rationalisation:
 147 factories closed since 2000 in EU (-60%)
 80 factories closed since 2006
Only 106 remaining in 2010 out of 251 in
2000
More than 20,000 direct jobs lost
 Fundamental changes in refining operations:
No longer restricted to a small number of
historic refiners
New refineries being built
Beet factories encouraged to “co-refine”
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II. EU Market Balance: 2010/2011
 ACP/LDCs unrestricted exports to the EU
 EU sugar market influenced by one world
dominant player: Brazil
 Agriculture: Sugar = Commodity influenced by
climatic conditions
 World markets are dominated by Brazil (more
than 50% of world exports), influenced by Indian
position
 EU wants to rely more on imports
II. EU Market Balance: 2010/2011
 Exceptional higher world market prices -White
sugar London N. 5 on 9th February: 761$ = 558€/t; EU
average at November 2010 487 €/t, on 28th Feb.,
726$=527€/treflecting the world tight
situation: World markets on 2 years of
shortage. 2010/2011 possible slight surplus??
 ACP/LDCs difficulties to export to the EU: EC
forecast for 09/10 1,5 mln t.
 EU “ordinary” year compared to last year
II. CEFS Position and Actions
In the event of tight supply on the EU sugar
market:
 Joint CIBE/CEFS Letter of October 2010 to
Commissioner Ciolos:
 Should the Commission consider it necessary
and market conditions prove it to be so, the
EU sugar producers are ready to be part of
the solution
II. CEFS Position and Actions
 Joint CIBE/CEFS Letter of February 2011:
1. EU sugar production should be given the
priority when considering additional import
concessions.
2. Commission should not lose sight of the 2011/12
campaign given the tight situation on the world
market (new export tranche under 2010/11 EU export commitments at
WTO, using 2011/12 sugar production).
II. EU sugar balance: 2010/2011-11/12
 Need for anticipating 2011/12 before
sowing decisions, i.e. now:
Management Committee of 28.2.2011
crucial for EU sugar balance 2010/2011
 EU Commission choices in next weeks
and months will be decisive for the EU
sugar Balance 2011/2012
III. Special Report (6/2010) of the
EU Court of Auditors:
“Has the reform of the
sugar market achieved
its main objectives”?
 Statement of the EUROPEAN COURT OF AUDITORS
10.11.2010*:
“With regard to the competitiveness of the EU sugar
industry… the reform process has not fully ensured the future
competitiveness….”
 Statement EU COMMISSION 18.11.2010**:
“Several options for the future… to bring about increased
efficiency and greater competitiveness for the sector.”
*Source: PRESS RELEASE EUROPEAN COURT OF AUDITORS; Special Report: Has the reform of the sugar market achieved its main objectives?
**Source: COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS; The CAP towards 2020
III. Special Report of the Court of Auditors
Some thoughts on the Report:
 CEFS positions recalled: EU imports policy,
available tools in case of undersupply, exports
above WTO limits,…
 Court position: need to get rid of the rigidities
and constraints of current quota system.
III. Special Report of the Court of Auditors
EU Market Balance:
• Court of Auditors: “EU production covering 85 % of
its consumption”“increasing the EU dependence on
imports” (§ 81)
• Commission Reply:“the regime incorporates the
necessary instruments to deal with hypothetical
situations of undersupply of the EU market mainly by
converting available out-of-quota sugar into quota
sugar.” (§ 58).
• CEFS position: Priority to EU production in
comparison to imports. 85% of EU Consumption
should be maintained.
III. Report of the Court of Auditors
EU Market Balance: Imports/exports
• Court of Auditors: “increase in imports [….] would
have an adverse impact […]further reducing the
EU’s sugar production capacity and likely resulting in
additional factory closures” (§57)
• Commission Reply: “not all EU sugar exports but only
subsidized exports should be kept within the limit
imposed by the WTO ruling” (§ 7)
• CEFS position: EU needs to have the same freedom
to export as any other trading region in the world
IV. CAP
CEFS
CEFSPOST-2013
PRIORITIES
PRIORITIES
1- Imports management
policy
2- EU supply management
3- Freedom to export
4- EU sugar beet contracts
5- CAP budget contribution
Thank you for your attention
CEFS
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