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CIUS Committee of Industrial Users of Sugar. I. Who are we?. CIUS Members. National CIUS: UK, Germany, Netherlands, Spain, Ireland, Denmark. 70 billion € 3,000 businesses. 2001 Sugar % Consumption Split. Source - ED&F Mann. Sugar Exported From EU. Source - Commission 2003. Employment.
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CIUS Members National CIUS: UK, Germany, Netherlands, Spain, Ireland, Denmark 70 billion € 3,000 businesses
2001 Sugar % Consumption Split Source - ED&F Mann
Sugar Exported From EU Source - Commission 2003
Employment Source - Eurocare
CIUS members have bought : 500,000,000 Tonnes 360,000,000,000 Euros36 years of expertise in buying sugar and dealing with the EU Sugar Regime
CURRENT SITUATION 3 major obstacles to competition: 1. The lack of competition between sugar processors - Tacit collusion between processors - Price fixing - Several case of cartel during last 15 years The goal: Market Forces must come into play!
CURRENT SITUATION 3 major obstacles to competition: 2. Obstacles to competition between natural sweeteners - Isoglucose maximum quota equal 4% of sugar quota... - No competition between HFS suppliers - Artificially high price for this raw material The goal: Market Forces must come into play!
CURRENT SITUATION 3 major obstacles to competition: 3. Disruption of of the value chain - All efficiency gains done at beet farming and sugar processing have been kept at sugar processor’s benefit The goal: Market Forces must come into play!
REFORM Therefore, since many years, and at many occasion, CIUS repeatedly asked for a deep market organization reform
COMMISSION PROPOSAL On September 23, the EU Commission presented a communication and puts forward three options for reforming the EU sugar regime: 1. Status-quo, 2. Price reductions and quota elimination (preferred option) 3. Full liberalisation
CIUS VISION 1/ Future WTO negotiation will put an end to: export restitution and abusive import duties. 2/ There are many political discussion between EU and trade partners that will influence the import of sugar in the short future: EBA, new ACP negotiation, Balkan free trade, Mercosur free trade,...
CIUS VISION Therefore: Current system is obsolete, and leaving it unchanged will damage all stakeholder, in Europe and abroad Option 2 from the Commission is the only viable option. Transition MUST be as quick as possible
CIUS VISION TOMORROW: 1/ Sugar supply in Europe based on efficiency, competitiveness, and specialisation 2/ Beet farmers revenue part of the new CAP system 3/ Quota abolished to guaranty a fair internal competition 4/ Minimum price for sugar reduced to a equilibrium level - balancing internal and external supply, - in line with phased reduced tariffs
CIUS VISION The transition period to this new market situation must: 1. Be as quick as possible 2. Have the best technical instrument to help all stakeholder to adapt Let’s together work on the instruments to get there quickly Quota dismantling is the key issue to agree on as soon as possible