The total package negotiated in November 2005 in the context of the reform of the EU sugar regime was worth €312m to Ireland. An amending EU regulation in October 2007 had the effect of increasing the overall value to Ireland of this package to €353m. The package was composed of three elements.
The first element was the compensation for the reduction in the minimum price of beet — worth approximately €123m to Irish beet growers over seven years. This was incorporated in the Single Payment with effect from 2006.
The second element was the EU restructuring aid which, at the outset, was worth €145m to Ireland. Under the EU regulations, three parties benefited from this aid: the sugar processor, former beet growers and machinery contractors. The first instalment (40%) was paid in June 2007 and the balance (60%) was paid in February 2008. Some 380 machinery contractors received €5.9m to compensate them for actual loss in value of specialized beet machinery. As a result of the amending EU regulation in October 2007, the amount of restructuring aid for Ireland was increased by €41.3m. Payment of this additional amount was made retroactively to over 3,500 former beet growers last month, bringing the total amount of restructuring aid allocated to the growers to over €53m.
The third and final element of the package was the diversification aid worth almost €44m to the former beet growers. The first tranche of 50% (€22m) was paid in September 2007 and the balance was paid in March 2008. This completes the implementation of the sugar reform package.