MANY smaller growers among the 1,500 suppliers of sugar beet to York's British Sugar factory are now likely to leave the industry.

That is the predicted effect of the new agreement brokered by Britain, which will see European sugar prices slashed by 36 per cent, and an estimated loss of 100,000 jobs throughout Europe.

But a British Sugar spokesman today assured the York factory's growers: "We have no mandatory quota cuts at any of our six factories, including York, and therefore no plans for closures or to change throughput at any of them."

The deal struck in Brussels is designed to end European protection.

It should also create fairer international marketing conditions for growers in places like Brazil, Thailand and Australia.

David Wilmot-Smith, who produces more than 400 tonnes of beet at his farm outside Bubwith for the York sugar factory, said: "Quite a lot of farmers will stop growing sugar in our region, especially the smaller growers who cannot rely on an economy of scale to cushion them.

"Potentially, that will mean fewer jobs in the rural economy.

"For instance, a haulier may have to lay off one or two people when he finds he is faced with fewer runs of beet from the farms into York.

"Two fewer people means fewer children in the local schools and less takings for the local Spar shop - a gradual knock-on effect."

But the bitter-sweet news is that local farmers who made a special protest visit to Brussels earlier this year got at least part of what they wanted.

They had always accepted that change was inevitable, but objected to proposed price cuts of 39 per cent over two years.

Now at least, he said, it was 36 per cent and phased over four years.

Mike Blacker, chairman of the National Farmers' Union Sugar Board, who farms beet at Newton-on-Ouse, though welcoming this, emerged from the Brussels negotiations to warn: "The extent of price cuts will still be extremely painful."

The new European arrangements come as growers in North Yorkshire and Lincolnshire are about to start a regular renegotiation of their terms with British Sugar at York.

Mr Wilmot-Smith said: "I am optimistic that I will still be growing sugar in five years' time, but I am going to look carefully at the small print on our new agreements. How British sugar adjusts its prices and the effect that will have on us has yet to be thrashed out."

British Sugar's processing plant in Boroughbridge Road, York, has taken on 35 seasonal staff to add to its 110 permanent workforce to cope with this winter's "campaign" - the rush to bring in the beet harvest and process it.

Updated: 09:51 Monday, November 28, 2005