Merrion Stockbrokers is advising Greencore shareholders to hold onto their shares for now. The brokers refer to the European Agriculture Council decision regarding the reform of the EU sugar regime, with the current pricing and quota system to be extended until 2006. This has consequences for European sugar producers, but the consequences could be exaggerated or misinterpreted.

While this decision will have an impact on the earnings of some European sugar producers, particularly those that export a large part of their sugar quota, Merrion says it sees no reason to change its forecasts for the sugar division's contribution to Greencore's overall earnings for the next three years on the basis of this decision.