D’Arcy welcomes study which highlights viability of sugar beet industry

Published on Friday, 02 December 2011 14:21

Revival of beet industry could create 5,000 jobs

Today I welcomed a report which states that 5,000 jobs could be created by the revival of the sugar beet industry in Ireland. The feasibility study by the Irish Sugar Beet Bio-Refinery Group calls for the establishment of a bio-refinery plant in the southeast, which would produce sugar as well as ethanol from sugar beet and grain.

“This study provides proof, if needed, that the sugar beet industry was allowed to end prematurely in 2006 by the then Government. Sugar beet prices have hit a 30 year high in Europe due to an under-supply. Furthermore, the end of the European Commission quota system in 2015 would act as a significant incentive for farmers to re-engage with beet.

“Minister for Agriculture, Simon Coveney, has already signalled his support for the revival of the industry but only if a sound economic and commercial case could be made. It is clear to me that there is a very good case for the revival of the industry and this study clearly articulates that. Minister Coveney has shown himself to be in tune with the farming industry and is a member of a Government which prioritises job creation. As such, I am confident that he will give the issue his full consideration.”

The study recommends the establishment of a bio-refinery plant in the southeast, which would produce sugar as well as ethanol from beet and grain. The bio-ethanol plant would process 1.2 million tonnes of sugar beet, one million of which would be used to produce 154,000 tonnes of sugar, and the remainder used to produce ethanol.

This ethanol production would be supplemented by processing a further 56,000 tonnes of grain, as well as molasses, to produce 50 million litres of ethanol annually. As outlined in the study, 50 million litres of ethanol would make a significant contribution to the national target of 10% bio-fuel substitution by 2020. It is estimated that the privately owned and run plant would cost an estimated €350 million to construct. 30% of the finance would come from equity investment and 70% from 15-year bank loans. The study finds that the plant would be profitable within the first year.

This study clearly outlines what many in the farming community have been saying for years, that the sugar beet industry is viable and could be hugely profitable. What’s more, it could create 5,000 jobs. Given today’s economic situation, the prospect of job creation and economic stimulus merits that we take this issue very seriously.