Memorandum submitted by Germain's Technology
Group—UK (O56)
As Chief Executive Office of Germain's Technology
Group, I am writing in response to the invitation from the Environment,
Food and Rural Affairs Committee to submit evidence concerning
the options for the forthcoming enquiry on the reform of the EU
Sugar Regime.
1.1 Germain's Technology Group (GTG) is
a world-leading seed coating and seed enhancement company. Our
principal business resides in the UK, where we employ 75 people.
Some 75% of this business is involved in sugar beet, a crop with
which Germain's has been closely associated since the UK Company
was established in 1966.
1.2 Germain's contribution to the UK sugar
beet industry has been to provide high technology seed coating
and treatments, which have enabled growers to maximise the potential
of the seed sown. Germain's are the only company in the UK providing
these products and have made a considerable investment in process
engineering, quality control systems and R&D over the years,
which has resulted in a reputation for leading edge technology
in sugar beet seed coating and enhancement.
1.3 Seed pelleting technology was initially
developed as a means of improving plantability by precise depth
and space placing of the seed, which is essential to final yield
in root crops such as sugar beet. Subsequently, seed-applied fungicides
and insecticides were introduced for seed and seedling protection.
The precise application of these seed-applied crop protection
chemicals as carried out by Germain's is important not only for
seed safety, but also to ensure specific targeting against pests
or diseases. This process is supported not only by state of the
art application systems, but also by monitoring through quality
assurance and control procedures accredited under ISO 9001.
1.4 Germain's apply these pesticides at
a single site, where both the process and recycling of bulk chemical
containers are carefully and correctly controlled in accordance
with current legislation. This negates the need for growers to
handle these materials on farm, thus eliminating packaging disposal
and reducing environmental impact. The introduction of imidacloprid
(Gaucho) to the UK market as a seed treatment for sugar beet amply
illustrates this point. Germain's role in applying this pesticide
has not only enabled precise targeting of the pesticide, as opposed
to either broadcast use of granules or sprays, but has also resulted
in a significant reduction in pesticide usage on the crop.
1.5 More recently, Germain's have developed
a large-volume seed priming process which is a major innovation
in the sugar beet crop. This has been the result of considerable
research and development and associated quality control procedures
and is unique to Germain's. This treatment is now used on 70%
of the UK crop and its contribution to both establishing the crop
and to significantly improving ultimate yield is now recognised
by UK growers, British Sugar, The National Farmers' Union and
research institutions.
1.6 Whilst we accept there will be changes
to the European Sugar Regime, we believe this should be done in
a balanced way leading to a stable market to ensure that efficient
industries, such as Germain's, can operate and invest for a sustainable
future. The consequence of dramatic and immediate change would
seriously impact on Germain's ability to address the future challenges
of the UK needs for sugar beet seed enhancement technology. Moreover,
it would be economically devastating for the Company and for all
those employed in the business.
Paul Ayres
Chief Executive
1 April 2004
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