| LONDON, Jan 24 (Reuters) - British Sugar Plc, Britain's sole
sugar beet processor, said it will close three of its nine factories by
the end of the 2001/02 campaign in a move to ensure long-term
competitiveness.
The move alarmed Britain's 9,500 sugar beet growers who are worried
about higher transport costs. Their leaders called on Wednesday for talks
with British Sugar management.
In a statement issued on Tuesday, British Sugar, a unit of Associated
British foods (quote from Yahoo! UK & Ireland: ABF.L), said that
following investments in the 1990s, the company was now able to process
the national beet crop in fewer factories.
It said it will close its Bardney and Ipswich factories in February at
the end of the current sugar campaign and close its Kidderminster factory
at the end of the 2001/02 campaign.
``Our overall capacity remains unchanged and we shall continue to
produce comfortably in excess of our EU quota with an average crop being
processed in around 150 days,'' said Karl Carter, British Sugar's
agriculture and operations director.
British Sugar produces around 1.3 million tonnes of refined sugar
annually from about 8.5 million tonnes of beet.
Britain's subsidised EU sugar production quota was reduced this season
to 1.121 million tonnes, from 1.144 million, as part of a cutback to meet
commitments to the World Trade Organisation.
British Sugar stressed that the factory closures are unrelated to the
EU's Everything But Arms (EBA) proposal and discussions over the future of
the EU sugar marketing regime.
The EBA proposal allows sugar to be imported freely into the EU from
the world's 48 poorest countries and would be phased in between 2006-2008.
British and other European sugar producers have strongly attacked the
proposal, saying it would damage the local industry and distort trade
flows. They also oppose reform of the EU sugar regime resulting in lower
prices and reduced margins.
The Chairman of the National Farmers Union's sugar beet committee, Matt
Twidale, said that factory closures will increase farmers' costs because
sugar beet will have to be transported further to processing factories.
``It adds miles to the transport costs which eventually farmers have to
bear,'' Twidale told Reuters.
Twidale said farmers' leaders will meet senior British Sugar management
in the very near future to discuss the closures. |