Communication from the Commission to sugar beet and sugar producers

(2006/C 316/08)

Sugar undertakings are reminded that the deadline for participating in the restructuring scheme for the 2007/08 marketing year is 31 January 2007.

At the Council meeting of 20 November 2006 the Commission drew attention to the very serious situation that may arise for the sugar market.

At this stage it appears that there might be an insufficient take-up of the restructuring scheme in this second year of the restructuring period. As a consequence sugar production in the 2007/08 marketing year may significantly exceed the outlets. The result risks being a serious imbalance on the market and a high level of stocks, which might exceed normal stocks by 4 million or more, on 30 September 2008.

Sugar undertakings are therefore encouraged to carefully analyse their competitive position in the medium and long term and the advantage of participating in the restructuring scheme under the conditions valid for the 2007/08 marketing year, bearing in mind that the deadline for applications is 31 January 2007.

The Commission recalls the need to ensure balance on the sugar market in light of our international commitments.

The Restructuring Fund is the instrument which should ensure the necessary restructuring of the industry.

If the restructuring process is unsuccessful, this will automatically have an effect on the decision on possible quota reduction which the Commission will have to take by February 2010 under Article 10(2) of Regulation (EC) No 318/2006.