Large sums of money are involved in the EU agricultural policy

As a result of the European Parliament elections that were recently held, the European Union has been receiving a lot of attention. One of the topics frequently addressed in the press concerns the EU agricultural subsidies. It is a complicated topic that many times gives rise to confusion. Millions and millions are involved and yet, it is often not clear what they are spent on.

Restructuring

Recently it was said in the press that Cosun received a €35 million subsidy from Brussels. A direct connection was made with surpluses accumulated in the past as a result of this generous production aid.

However, this subsidy concerns a payment for the restructuring of the sugar sector, given that we closed factories and have reduced the area under beet cultivation in the last few years. A part of the payment is for the beet growers and, for instance, agricultural contractors; another part is for the sugar industry itself.  

It is not mentioned that for the financial year 2009, Cosun pays more than €68 million in restructuring levies to the EU. For 2008, this was as much as almost €128 million. For the crop year 2008/09, the levy amounts to €11.33 per 100 kg of sugar.

Future

The European sugar sector has changed radically in the last few years: less EU aid, mergers and takeovers within the sugar industry, reduction of the production capacity. In the meantime, the EU has become a net importer of sugar.

Cosun anticipated this development and made a great effort to build a solid sugar sector in the Netherlands, perfectly able to take on the increasing competition on the European market:

Suiker Unie has a sound cost structure, modern factories and a substantial position in North West Europe.