italian experience in the sugar sector ......such as further restructuring of sugar sector and the...

ITALIAN EXPERIENCE IN THE SUGAR SECTOR:

MAINTAINING A STRATEGIC SECTOR AND SKILLED JOBS WHILE INCREASING

COMPETITIVENESS:

Presentation by Roberto Iovino (FLAI - CGIL) in collaboration with Patrick Pagani (UNIONZUCCHERO)

«Industrial change in the EU beet sugar industry» - Mini Hearing c/o EESC - 16th May 2017

Italy and the 2006 reform: a tsunamy

➤ 15 factories closed

➤ 5000 permanent and seasonal jobs lost

➤ Beet growers reduced by 1/3

➤ Production reduced from 1,8 mln. to 0,5 mln


A responsible pact among all actors of the chain – beet growers, workers, industry – and Government

Investments in Italy after the 2006 reform


Sugar plants in Italy in 2016

Approximately 1000 workers (both direct and indirect)

33.000/40.000 hectares

More6000farmersthatgrowbeetmainlyinthemostcompe77veareasofthenorthofItaly


The Italian sugar sector


The reforming process of the UE beet sugar sector and consequences – Key messages


But the European Commission expects prices to stay low for the foreseeable future


The impact of low sugar prices: already visible in the margins of the major sugar producers  


Long Term Developments (EU-28) (III): Employees

1990/91 2005/06 2014/15eDirect employees sugar industry EU-15 73.472 19.951 -53.521 -73%Direct employees sugar industry EU-28 53.414 29.293 -24.121 -45%

Direct employees per factory EU-15 ≈310 ≈280 -≈30 -10%

-6,5%p.a.

-0,4%p.a.

∆-5,3%p.a.

53.414

29.293

73.472

31.493

19.95118.656

7.509

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

EmployeesEU-28(incl.RO,BG&CR)

EmployeesEU-15

EmployeesEU-10

*Source:CEFSStatistics;incaseofmissinginformatione.g.forCroatia (noEUmemberatthattime)ownestimationsused


CONCLUSIONS

• There is need of commitment so that all the stakeholders both institutional and private act in the next future in order to reinforce the support regime in the CAP (Common Agricultural Policy) for the beetroot production. Being the aim that of defending the beet-sugar production along with the promotion of a sustainable agricultural model from the environmental and social standpoint.

• It should be clear that the sugar supply in Europe cannot be left to private players alone. If sugar is a strategical commodity then ad hoc measures are necessary to avoid the risk of exposing Europe to Third Countries supply only. In such reasoning, protectionist measures and free market do not matter much, being the issue that of making a political choice on the strategic role of the bee sugar production, a european specificity that may get out in a global environment.

• It is not necessary to stipulate free exchange agreements on the commodities with peculiar regard to sugar. We are much worried about TTIP hypothesis just like the Mercosur member states.


• It is necessary to keep on insisting on alternative uses of beetroot in order to revalue its potential even beyond the sugar production. The thought goes to the production of renewable energies potential (gaz e bio-ethanol…) and biochmistry as well, from a sustainability and social responsability angle. In the last decade, there has been a backing down of public policies in supporting innovation and enhancement of renewable energies chain. The economic crisis and the limited resources available have once again led to oil supply. Such trend should be reversed in order to offer a sustainable future the up coming generations. Public investment is necessary in supporting innovation, research and development programmes currently sponsored mainly by private players.

• The end of milk quota regime has shown that a transition without specific measures may cause tensions and negative impact. In several social and civil dialogue hearings, all Stakeholders requested for extraordinary measures for restructuring the sector. The same was requested by the Agricultural Committee of European Parliament. The EU Commission and the the Experts Group set by the Council have always stated that they would have considered such possibility along the way based on market trends. It is high time: notwithstanding a slight price recovery, negative data are still there as well as the need of urgent decision in the short run.

• Recent years austerity policies have considerably contained the tools available to States in handling industrial restructuring and for safeguarding social protection measures for workers. In Italy for instance, the reforms requested by EU have much more contained the social protection tools against unemployment. The situation is so cloudy that we have no tool in order to handle milestone processes such as further restructuring of sugar sector and the quote-regime end. We believe the time has come for the introduction of a new fund for workers pushed out of the productive process. Unlike 2006, any measure should aim at protecting workers from professional re-training and social protection angle.

CONCLUSIONS


THANKS FOR YOUR ATTENTION!!!

italian experience in the sugar sector ......such as further restructuring of sugar sector and the...

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