Sucros Oy Calls for More Growers

30/01/08 Sugar producer Sucros Oy said in a statement that all in all 1.066 Finnish beet growers have said yes to continue beet growing and increasing their growing area so that it corresponds to 80.338 tons of sugar. Most of the growers continuing and increasing their area are situated near Säkylä factory, 90% having less than 160 km to the factory. The amount of those growers further away than 160 km corresponds to 8.288 tons, which might not be sustainable long term. All in all 812 (43%) growers announced stopping beet growing. These farms are smaller than average beet growers and their quota amounts up to 27.837 tons (35%).

“We are satisfied that 1.066 beet growers want to continue and even increase their area, but to ensure the sufficient profitability we still need more growers to sign up or increase their commitment. The future Finnish sugar quota will be 80.999 tons but each year we experience that some farmers stop growing and weather conditions may have a big influence on the crop, too. Thus we have to have some reserve growing area and further willingness to avoid an unfortunate situation not reaching the needed crop level to maintain the profitable sugar production”, the company said.

This is a matter of a solution for many years and we need a growing willingness to extend for the whole IPA period, Sucros warned. The sugar industry has still a possibility to sell the quota next year and get compensation, should the beet growing not reach a satisfactory level. It is therefore essential that we get a sufficient growing willingness for the whole period. That’s why also opening for new growers is considered together with the present ones.

Finnish government, both Ministry of Agriculture and Ministry of Employment and the Economy have in many connections highlighted the importance of continuing sugar production and announced its support to the sugar production chain. The measures are, however, still to be finally defined.

The compensation for the beet growers that want to stop is to be decided by the government. If the beet growing continues in Finland, there is only a compensation based on 9.001 tons of sugar available despite the fact that the quota of those growers willing to stop is 27.837 tons. It is possible that part of the stopping growers is not getting any compensation. Sucros is willing to offer a possibility to continue for those growers having announced their stopping but who won’t get any compensation.

Sucros and its shareholders Danisco Sugar A/S and Lännen Tehtaat Oyj will now evaluate the situation and negotiate with the relevant parties how to ensure further beet growing and how to guarantee all the necessary government support measures. They hope to be able to have a decision ready in two weeks.