EU starch industry disappointed at Dantin report on -  sugar quotas

On 31 May 2012, Michel Dantin (EPP, France), European Parliament rapporteur on the CAP Single CMO proposal, published his draft report. The draft report proposes extending the EU sugar regime until 2019/20.

With the end of milk quotas in 2015, sugar and isoglucose - a starch based sugar used in a number of final consumer products, most notably soft drinks - will be the only EU agricultural product to continue to be subject to an EU quota system. Amongst other shortcomings, the EU sugar regime artificially restricts the production of isoglucose to just 5% of the EU quota.

As a result of the EU sugar regime, and its associated quota system, 24 out of the 27 EU Member States again reported recently to be suffering from a shortage of sugar supply in 2011/12. The artificial and rigid quota system results in supply uncertainty, limited choice and higher prices for EU sugar users and final consumers and prevents the EU starch industry from making the necessary investments to meet customer demand for isoglucose thus stopping further innovation.

At a time of growing global demand for sugar, by proposing the abolition of the sugar regime in 2015, the  European Commission clearly recognises that the current sugar regime is outdated and that its elimination would offer interesting opportunities for expansion both for the sugar sector and for the starch sector. The European Starch Industry Association, AAF, calls on the European Parliament, and in the first instance its Agriculture Committee, to reject Dantin’s amendments which would extend the sugar regime until 2019/20 and to support the European Commission proposal that it be abolished in 2015.

For more details on the AAF position on the EU sugar regime please see:

‘2015 is the right time to abolish EU production quotas on sugar and isoglucose’

‘AAF position on the single CMO – Sugar reform’