Bernard Durkan (Kildare North, Fine Gael)
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Question 225: To ask the Minister for Agriculture and Food the countries likely to become the main producers of sugar throughout the European Union; the steps she has taken to protect producers in the poorer or more remote regions; and if she will make a statement on the matter. [12487/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The agreement on reform of the EU sugar regime, necessitated by internal EU pressures as well as international pressures arising from WTO and EBA obligations, will lead to a significant reduction in EU sugar production. Five member states, France, Germany, Poland, UK and Italy, account for two thirds of EU sugar production and it is likely that these states will continue to account for the bulk of EU production. Impact studies by the EU Commission projected that in four member states, Italy, Greece, Portugal and Ireland, sugar production was likely to be drastically reduced or phased out as a consequence of reform. However, most member states are affected in varying degrees by the reform and the recent deterioration in the market. Factory closures have already been announced in 11 member states and more are expected.

To alleviate the impact of the reform on member states, a comprehensive compensation package is available. In Ireland's case, the compensation will be worth approximately €310 million. The EU is also providing assistance to developing countries which will be affected by the reform agreement.