Press Release: CAP Reform: EU agriculture ministers adopt groundbreaking sugar reform

European Union agriculture ministers on 21 February 2006 formally adopted a radical reform of the EU sugar sector. The reform, which was to come into force on 1 July 2006, was meant to bring a system which had remained largely unchanged for almost 40 years into line with the rest of the reformed Common Agricultural Policy. The key to the reform was a 36 percent cut in the guaranteed minimum sugar price, generous compensation for farmers and, crucially, a Restructuring Fund as a carrot to encourage uncompetitive sugar producers to leave the industry.

• Primary Source

European Commission: DG Agriculture and Rural Development: CAP reform: Reform of the sugar sector https://ec.europa.eu/agriculture/sugar_en

European Commission: PreLex: COM(2005) 263, Proposals for three Council Regulations concerning the common organisation of the markets, direct support schemes and temporary restructuring schemes in the sugar sector, 22.6.05 http://ec.europa.eu/prelex/detail_dossier.cfm?CL=en&ReqId=0&DocType=COM&DocYear=2005&DocNum=0263

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