-Europe now lowest priced market
The Sugar Association of the Caribbean (SAC) has agreed that it needs to start making new arrangements now for the sale of sugar to the European Union (EU) after the 2015 date that the current agreement covers.
According to a press release the group discussed the changes in the European Sugar Regime, satisfying regional sugar demands, its future role and the West Indies Central Sugarcane Breeding Station at its 152nd Board of Directors and 68th Ordinary General meeting in Belize. “The latter was looked at in the context of research activities currently undertaken by individual SAC members,” the release said.
The group noted that new arrangements for the supply of sugar to the European Union were put in place on October 1, 2009 and will be in force until 2015. The EU Sugar Regime replaces the Sugar Protocol implemented in 1975 to govern arrangements for the supply of sugar to the EU. The new arrangements were incorporated into the Economic Partnership Agreement between the EU and Cariforum countries.
With the new regime in place, the SAC noted that each supplying country is free to negotiate individual commercial contracts with refiners or sell as direct consumption sugar in the EU. “In light of these changes, members noted that after the 36% price reduction, the EU market was the lowest priced of all the export markets available to SAC members” as a result of the current high prices in the US and on the world market.
The members of the SAC also lamented the “slow pace” of disbursal of funds allocated by the EU under the Accompanying Mea-sures which came with the scrapping of the Sugar Protocol. SAC members said while an arrangement in place covers up to 2015, it needed to start working now to seek to influence the shape of a new Sugar Regime after the said date. They agreed that the approach would be to come up with clearly defined strategies and establish alliances and sensitize stakeholders. In this regard a Draft Position Paper has been prepared for ACP ambassadors in Brussels. The stated objectives in the paper for all sugar suppliers to the EU including SAC members would be a Regime with prices that are fair, stable and reasonably remunerative, access which is secure and a predictable long-term market.
SAC also discussed and agreed to supply the sugar needs of the region from local production. At the same time, it noted that there were some issues to be resolved, such as enforcement of the Common External Tariff and resolution to divergence of interests on sugar prices amongst government, sugar users and the industries.
Members also recognised and agreed that with changes to the marketing arrangements and other challenges, SAC had to review its role and functions. Some of the issues to be examined include the role of research and cane breeding, meeting the demands of the regional market from regional production, representing the interests of sugar producers at the regional and international level as well as maintaining effective links with commercial and political representatives in the EU and USA.
According to the release SAC also appointed its Board of Directors for 2009-2010.
The appointees are Leslie Parris of Barbados, Jose Montalvo of Belize, Errol Hanoman of Guyana and Karl James of Jamaica. James was elected to serve as chairman of the association.