Press Release: No preventive withdrawal of sugar in 2008/09; possible final quota cut in 2010 of 1.16 million tonnes

The EU sugar sector faces a possible final quota cut of 1.16 million tonnes in 2010, based on renunciations at this stage under the revised sugar Restructuring Fund. This week the breakdown between Member States for this possible final cut will be delivered to Member States and to the stakeholders with a view to facilitate companies' decision in the second step for 2008/09. The restructuring scheme was drawn up to achieve the structural balance of the sugar market in the medium term where exports are limited to the WTO commitment (1.374 millions tonnes) and imports from LDCs should increase substantially. The reduction objective is set at 6 millions tonnes. Until now, 4.8 millions tonnes have been renounced within the restructuring scheme: 2.2 millions in 2006 and 2007; 2.5 millions tonnes in the first step for 2008/09 and 0.1 million tonnes for 2009/10. If, by 2010, insufficient quota has been renounced within the restructuring scheme, the Commission is mandated to make compulsory quota cuts, with no financial compensation. Based on the 4.84 millions tonnes of renunciations at this stage, the quantity to be cut in 2010 would be 1.16 million tonnes.