Danisco and Danish Sugar-Beet Growers agreed upon a new agreement con-cerning sugar beets
28. januar 2004
The Council meeting 28 January 2004
On the 27th of august 2003 the Competition Council issued an order to Danisco and Danish Sugar-Beet Growers for the termination of a structural agreement concern-ing sugar beets.
The structural agreement was an amendment to the general agreement between Danisco and Danish Sugar-Beet Growers which as an exception gave the beet growers the opportunity to buy and sell their delivery rights. The aim was to make the sugar beet production more effective and to reduce the growers cost of trans-portation by moving the sugar beet production closer to the sugar factories. This would mean that a number of beet growers would not get the same possibilities as other growers to rationalize and make their production more effective and thus im-prove their earning power and competitiveness.
It appears from the Councils decision that the Danish Competition Authority will continue the examinations of the general agreement between Danisco and Danish Sugar-Beet Growers with a view to a more extensive liberalization on the long view in form of an abolition of the prohibition which prohibits trade of sugar beet delivery rights between growers.
The Councils decision has been brought before the Competition Appeals Tribunal. The case is still pending.
On the 19th of December 2003 Danisco and Danish Sugar-Beet Growers notified a new amendment to the general agreement which gives all growers the opportunity to either lease or lease out beet delivery rights in 2004 and 2005. This means that delivery rights for a limited period of time will be tradable.
On a short view it will be possible for all growers on equal terms to make their production more effective and to improve their earning power and competitiveness. The agreement does not affect the possibility of an abolition of the general prohibition on the long view.