Sugar deal divides bitter growers

THE 1,300 beet growers who supply sugar beet to Greencore's Irish Sugar subsidiary are deeply divided on the offer from the company…

THE 1,300 beet growers who supply sugar beet to Greencore's Irish Sugar subsidiary are deeply divided on the offer from the company to increase prices and it is understood that majority in favour of the deal is no more than 20 votes out of the 1,300 growers who voted.

Local meetings of beet growers over the past week have shown remarkable variations in attitudes towards the Irish Sugar proposals, with some counties overwhelmingly against the deal and others in favour.

The attempt to resolve the long running dispute between Irish Sugar and the growers was recommended by the IFA's sugar beet and vegetable section last week and provided a £1.90 a tonne rise in beet prices over the next four years. The package was worth £8.7 million to growers, the IFA said at the time.

There are indications, however, that those opposed to the deal with Irish Sugar may press strongly for the entire matter to be reconsidered, given the closeness of the vote and amid claims that many growers were not fully aware of some of the conditions attached to the deal.

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As well as £1 a tonne up front for the 1997 crop, Irish Sugar has also agreed to write off an amount of 44p per tonne, owed by growers to the company on the 1996 crop, mainly relating to green pound revaluations.

Greencore products had been boycotted by members of the IFA as part of the dispute over beet prices.

Greencore shares ended up 1p on the day at 344p. When the break through was first mooted last week, Greencore shares rose 12p to 330p. The company also recently suffered a downgrading by Goodbody Stockbrokers because of a combination of the strike in the sugar factories, the growers' dispute and the green pound revaluations.