Select Committee on Environment, Food and Rural Affairs Written Evidence


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 importer—50% 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 factories—Cantley 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
Lincolnshire7.3930,4
Cambridgeshire9.0720,2
Suffolk8.6118,8
North Yorkshire4.36 11,6


Source: Sugar Beet and the Environment in the UK in accordance with Article 47(3) of Council Regulation 1260/200—defra.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.

    2.4.3

      Annual production around nine million tonnes of beet.

    2.4.4

      Produces approximately 1.4 million tonnes of sugar and 700,000 tonnes of animal feed.

    2.4.5

      Sugar beet remains one of the most highly profitable arable crops for UK farmers.

    2.4.6

      British Sugar pays around £300 million annually for the whole beet crop.

    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.

    2.4.8

      Seed is sown in March and early April.

    2.4.9

      The crop is harvested between mid-September and late February.

    2.4.10

      Processing begins in September and lasts until late February.

  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 crop inputs;

      —  reduced energy inputs;

      —  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 importer—50% 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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