Voluntary Report - public distribution
Date: 2/23/2007
GAIN Report Number: E47014
E47014
EU-27
Sugar
EU Agrees to Mandatory 2007/08 Sugar Production
Cut
2007
Approved by:
Debra Henke
USEU
Prepared by:
Michael Ward
Report Highlights:
On February 22, 2007 the European Commission agreed to a compulsory 2 million MT
production quota cut for the 2007/08 marketing year. This withdrawal comes after EU
Agriculture Commissioner Mariann Fischer Boel made comments about the failure of the
sugar reform to take the necessary amount out of production to balance the EU sugar
market. The Commission also noted that in the future it would review and amend the
restructuring payment scheme that compensates producers who surrender production.
However, no proposals to amend the payment scheme were publicly offered by the
Commission or Sugar Management Committee at this time.
Includes PSD Changes: No
Includes Trade Matrix: No
Unscheduled Report
Brussels USEU [BE2]
[E4]
USDA Foreign Agricultural Service
GAIN Report
Global Agriculture Information Network
Template Version 2.09
GAIN Report - E47014
Page 2 of 4
UNCLASSIFIED
USDA Foreign Agricultural Service
On February 22, 2007 the Sugar Management Committee voted on a European Commission
proposal agreeing to a compulsory 2 million MT production quota cut for the 2007/08
marketing year. As this falls within the Commission’s competence this effectively implements
the production cut.
EU Agriculture Commissioner Mariann Fischer Boel laid the groundwork for the reduction a
month earlier when she spoke at the January Agriculture Council stating that sugar
companies had failed to withdraw the necessary amount of sugar to balance the market.
Prior to this announcement European Union member states had agreed to take a little less
than 700,000 MT out of production for the 2007/08 marketing year putting the two year total
at just under 2.1 million MT well short of the Commission’s goal of reducing production by 5
mill