Memorandum submitted by PJ Young &
Sons (O59)
SUMMARY
Option 1 is the only option that will ensure
the future of sugar production in the UK. The sugar beet crop
is of fundamental importance to our farm and many others in the
West Midlands. A managed stable market is to the benefit of the
industry and consumers.
1. PJ Young & Sons is a family farming
partnership based in the Shifnal area of East Shropshire where
we farm 200 ha, all arable. Our soil type is predominately loamy
sand making it especially suitable for the cultivation of root
crops, cereals can not match the yields and margins of heavier
land farms. Potatoes and sugar beet are the mainstay of our farming
system. Potato production is subject to a notoriously cyclical
market, whilst sugar beet produces a reliable margin that has
been absolutely fundamental in maintaining the viability of our
business over the years. We have been growing sugar beet to supply
the Allscott factory since it opened. We employ three full time
staff.
2. On our farm we are committed to the preservation
and enhancement of the environment. We have had a Countryside
Stewardship agreement for 10 years and have taken advantage of
the much wider scope offered in the Arable Stewardship pilot to
encompass the whole farm for the last five years. We have always
believed sugar beet to be an environmentally beneficial crop with
its open growth habit encouraging many ground nesting birds. The
contribution to biodiversity of the crop was confirmed in Defra's
report in 2002.
3. I believe that Options 2 and 3 would
lead to catastrophic price reductions for sugar beet, causing
the demise of the industry, both at farm and processor level.
It would also undermine the industries of those developing countries
that this country is committed to assisting; those at present
allowed to supply to the UK half of our sugar requirement, at
a stable EU price. The world market price is akin to a market
of last resort for surplus production. This price is not sustainable
for any producers in the world, and will lead to a few countries
driving the market after existing producers have been priced out
of production.
4. Option 1 would allow a phased price reduction
that the industry could accept. We have seen in effect a 25% reduction
due to the value of the £ since the mid 1990s, which we have
managed to adjust to by rigorously controlling costs and improving
efficiency. The stable market albeit at a lower level than present
would encourage the already efficient UK industry to improve and
develop to the benefit of consumers, producers whilst retaining
support for developing countries.
1 April 2004
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