Memorandum submitted by Eastern Land Agents
(O24)
EXECUTIVE SUMMARY
1.1 As County Land Agent for Norfolk, I
have been requested to put forward the view of Eastern Land Agents
on the Reform of the Sugar Beet Regime.
1.2 The Eastern Land Agents' Forum is a
body representing managing agents for County Smallholding Estates
(County Farms) in the East of England.
1.3 Of the five principal sugar beet growing
counties, four (Norfolk, Suffolk, Cambridgeshire and Lincolnshire)
are members of the Eastern Land Agents' Forum.
1.4 The sustainability of the sugar industry
depends on integrating competitiveness, environment and social
standards.
1.5 Lord Whitty (Minister for Food Farming
and Sustainable Energy wrote to all Chief Executives of Smallholding
Authorities that the Government shares TRIG's view that County
Council Smallholdings make a valuable contribution to the tenanted
sector. They have an important role to play in the Government's
strategy for a sustainable farming industry. County Farms also
have an important role to play in the wider rural economy, and
can bring education and community benefits by providing a link
between town and countryside."
1.6 Sugar beet is a strategic crop within
the arable rotation and in many areas of the country forms a mainstay
of agricultural economy.
1.7 In an international context, the UK
beet sugar industry is renowned as highly efficient and has established
itself as the lowest cost producer in the European Union.
1.8 Productivity of the UK sugar beet crop
has constantly increased since the early 1970s due to improvements
in crop management, technical innovation and varieties.
1.9 It is estimated that 55% of smallholding
tenants over the four counties grow sugar beet as an essential
part of their agricultural rotation. In Norfolk the figure rises
to 80%.
1.10 To our tenants, the growing of sugar
beet is a vital part of their crop rotation, so any change in
the sugar regime must try and take account of the economic importance
to the individual farmers and to the economy of rural counties,
the market towns, the transport industry and ancillary businesses.
1.11 We recognise that review of the European
sugar sector is needed to enable a sustainable European industry
to continue in the long term. UK is a major importer50%
of needs. UK does NOT add to EU surplus. UK industry is the most
efficient in Europe.
1.12 Option 1 is the only realistic option,
as it would result in a stable market, which would allow efficient
producers to survive long term.
1.13 Eastern Land Agents are of the view
that Option 1 would not only help the developing countries but
would also not prejudice the viability of the many country farms
which grow sugar beet.
2. COUNTIES GROWING
SUGAR BEET
2.1 As County Land Agent for Norfolk, I
have been requested to put forward the view of Eastern Land Agents
on the Reform of the Sugar Beet Regime.
2.2 The Eastern Land Agents' Forum is a
body representing managing agents for County Smallholding Estates
(County Farms) in the East of England comprising together almost
40,000 hectares and amounting to over 40% of the national smallholding
estates. It meets on a regular basis to provide a co-ordinated
approach to matters such as the Mid Term Review and Reform of
the Sugar Beet Regime.
2.3 Table 1, below, shows that of the five
principal sugar beet growing counties, four (Norfolk, Suffolk,
Cambridgeshire and Lincolnshire) are members of the Eastern Land
Agents' Forum. Indeed Norfolk grows more sugar beet than any other
county. It has two sugar beet processing factoriesCantley
and Wissington. The latter is the largest beet factory in Europe.
Table 1
THE PRINCIPAL SUGAR BEET GROWING COUNTIES
IN THE UK IN THE YEAR 2003
| Sugar beet as a percent of total crop area%
| Total sugar beet area
in 000 hectares
|
Norfolk | 16.05
| 50,5 |
Lincolnshire | 7.39 | 30,4
|
Cambridgeshire | 9.07 | 20,2
|
Suffolk | 8.61 | 18,8
|
North Yorkshire | 4.36 |
11,6 |
| |
|
Source: Sugar Beet and the Environment in the UK in accordance
with Article 47(3) of Council Regulation 1260/200defra.gov.uk/corporate.
2.4 The agricultural facts about growing sugar beet in
England:
2.4.1
Around 7,000 beet growers.
2.4.2
Crop area 140,000 hectares.
2.4.4
Produces approximately 1.4 million tonnes of sugar and 700,000
tonnes of animal feed.
2.4.7
Sugar beet growing is a totally mechanised operation with
only 50-man hours per hectare required to grow a typical crop,
compared with 500 man-hours 30 years ago.
2.5 The British Beet Research Organisation states that:
2.5.1
Sugar beet is a strategic crop within the arable rotation
and in many areas of the country forms a mainstay of agricultural
economy.
2.5.2
In an international context, the UK beet sugar industry is
renowned as highly efficient and has established itself as the
lowest cost producer in the European Union.
2.5.3
Productivity of the UK sugar beet crop has constantly increased
since the early 1970s due to improvements in crop management,
technical innovation and varieties.
2.6 The UK Sustainable Development Commission in its
report entitled "The Sustainability of Sugar Supply 2002"
claims in its main key findings:
2.6.1
"The UK is a relatively minor player in the global sugar
market and over a five year period, accounted for just over 1%
of world production, 3.5% of imports and 1.5% of exports."
2.6.2
"The UK is the only significant European sugar cane
importer, with around 50% of its requirements supplied by developing
countries; it also has the most efficient sugar production industry
in Europe."
2.6.3
The sustainability of the sugar industry depends on integrating
competitiveness, environment and social standards and, in particular,
achievement of the following:
competitive production;
reduced environmental pollution and damage;
food safety and traceability;
environmental recycling of all co-products;
optimum product quality; and
sustainable livelihoods.
3. SMALLHOLDINGS/COUNTY
FARMS
3.1 Lord Whitty (Minister for Food Farming and Sustainable
Energy) in a letter dated 21 January 2004 headed "Report
of the Tenancy Reform Industry Group (TRIG)" wrote to all
Chief Executives of Smallholding Authorities and said, inter
alia, that the Government shares TRIG's view that County Council
Smallholdings make a valuable contribution to the tenanted sector.
They have an important role to play in the Government's strategy
for a sustainable farming industry by providing a step onto the
farming ladder for able and experienced people, who might otherwise
be unable to pursue a farming career. County Farms also have an
important role to play in the wider rural economy, and can bring
education and community benefits by providing a link between town
and countryside."
3.2 It is estimated that 55% of smallholding tenants
over the four counties grow sugar beet as an essential part of
their agricultural rotation. In Norfolk the figure rises to 80%.
3.3 To our tenants, the growing of sugar beet is a vital
part of their crop rotation, so any change in the sugar regime
must try and take account of the economic importance to the individual
farmers and to the economy of rural counties, the market towns,
the transport industry and ancillary businesses. For example,
sugar beet food miles in Norfolk are second to none with the county
average of 30 miles, whilst some sugar imports travel 12,000 miles.
4. OPTIONS
4.1 We recognise that review of the European sugar sector
is needed to enable a sustainable European industry to continue
in the long term. The UK beet industry is efficient and innovative,
so is well placed to adapt to change.
4.2 In considering the three options, it should be remembered
that:
The EU is the world's second biggest importer
of cane sugar.
UK is a major importer50% of needs.
UK does NOT add to EU surplus.
UK industry is the most efficient in Europe.
4.3 Option 1 is the only realistic option, as it would
result in a stable market, which would allow efficient producers
to survive long term.
Like the NFU and British Sugar we would support this option
because although it would mean reduction in quotas and prices,
our efficient producers could cope with it.
4.4 Option 2 or 3 would result in an unstable European
market with unsustainable low prices.
4.5 Reforming the sugar regime is our attempt to help
the developing country producers, they would be unlikely to survive
under Option 2 or 3 and the value of their exports to Europe would
be greatly reduced.
4.6 As far as we can understand it, both Option 2 and
3 would handover the UK and European market to Brazil, whose exports
to the world market have increased tenfold since 1990. Why should
our high environmental standards allow Brazil to expand by destroying
rain forest and growing cane sugar in virgin country? We all agree
that we should help developing countries. These countries favour
Option 1 and see Option 2 and 3 as highly damaging to the European
exports. The UK sugar market is shared 50/50 with developing countries
imports and would seem the ideal model to balance the interests
of efficient domestic production and helping developing countries.
5. CONCLUSION
5.1 Eastern Land Agents are of the view that Option 1
would not only help the developing countries but would also not
prejudice the viability of the many county farms which grow sugar
beet. Option 2 and 3 would have a disastrous effect on these holdings
in particular and the many small and fragile rural communities
in the eastern counties in which they are located.
Julian Hepburn, FRICS
County Land Agent, Norfolk County Council
On behalf of The Eastern Land Agents
25 March 2004
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