One of Ireland's two sugar beet factories could close if import tariffs are dramatically reduced in World Trade Organisation negotiations, the Minister for Agriculture, Mr Walsh, was told yesterday.
The warning was made by farm leaders at a meeting with the Minister prior to the opening of the WTO negotiations in Cancun, Mexico, next week.
The 3,700 beet producers in the State supply beet to the Mallow and Carlow plants, but yesterday the Minister was warned that if the EU allows more than a 15 per cent cut in import tariffs, one of the two factories could be at risk.
Mr John Dillon, the IFA president, said if the tariffs were cut dramatically and export subsidies removed, then one of the factories would be at risk.
Some 600 people are employed in the Irish sugar industry.
The Minister was asked to ensure that the EU designate sugar as a "sensitive" product within the negotiations, which would mean it would only face a 15 per cent rather than an average 36 per cent import tariff cut.
In a statement issued after the meeting, the Minister said he was conscious of the economic significance of sugar in Ireland. It was a remunerative crop for farmers, and it provided employment in processing and in up-stream and down-stream services.
He said he would take fully into account the importance of sugar production for farmers incomes, for employment and rural development generally during the WTO negotiations next week
He said he would also bear this in mind later in the year when reform of the EU sugar regime comes up for discussion in the Council of Ministers. His objective would be to protect the benefits which Ireland derived from the regime.
However, Mr Walsh said he would also be mindful of the benefits of the EU sugar regime to developing countries by importing 1.6 million tonnes a year duty-free from them.
This was worth €900 million annually to developing countries, and the EU also spent €800 million annually subsiding the re-export of the sugar which was surplus to EU needs.