Fed: Sugar farmers hopeful of better prices

AAP General News (Australia)
08-06-2004
Fed: Sugar farmers hopeful of better prices

CANBERRA, Aug 6 AAP - Australian sugar farmers are hopeful a World Trade Organisation
(WTO) ruling will provide a long-awaited boost to global sugar prices.

A WTO committee has backed a complaint filed by Australia, Brazil and Thailand that
the EU broke agreed limits on its export subsidies.

The ruling is only preliminary, but traditionally there is little difference between
the initial and final decisions of such committees.

It would mean the removal of around two million tonnes of subsidised European sugar
from world markets.

The general manager of peak Queensland sugar organisation Canegrowers, Ian Ballantyne,
said it would be about a month before the decision was finalised, followed by an appeal
period, but he expected the outcome to be final in about December or January.

He said although sales of sugar may not increase, the decision would definitely boost
world prices.

Australian Cane Farmers Association chairman Ross Walker said if the EU did take two
million tonnes of its subsidised sugar off the market, prices should rise.

"I think that amount of sugar being taken off the market should only have a positive
effect on the world price, therefore a major effect on Australian sugar cane farmers,"

he said.

Trade Minister Mark Vaile said as sugar farmers relied for 80 per cent of their income
from world prices, any decision to slash European subsidised sugar would be a huge boost.

AAP sw/rgr/pw

KEYWORD: WTO SUGAR DAYLEAD

2004 AAP Information Services Pty Limited (AAP) or its Licensors.