500,000 tonnes of out-of-quota sugar signed off for export

Commissioner Mariann Fischer Boel, said: “The current situation on the world market is exceptional. With production below consumption and diminishing sugar stocks, sugar prices have risen to unprecedented levels, to the detriment of consumers in poorer countries.

“This situation has coincided with the end of the restructuring of the EU sugar industry.

“The price situation on the EU and world market as well as production costs for beet and sugar in the EU, are such that out-of-quota sugar produced in the EU can be exported without violating the EU’s WTO subsidy commitments.

Record levels

“World market sugar prices are currently at record levels – well above the market price for EU quota sugar,” she said.

“In contrast, a very good harvest in the EU in 2009, led to the production of higher than expected quantities of out-of-quota sugar. It also allowed the price for quota sugar to continue to converge towards the lower reference price.

“This development also shows the 2005 sugar reform has improved the overall competitiveness of the EU sugar sector by encouraging high-cost producers to stop production.

“Against this background, the Commission has decided it is not necessary to apply a final quota cut to reach a structural balance on the EU sugar market after the end of the restructuring period,” said the Commissioner.

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