In the south of Reunion Island, Alexandre Hoarau inherited eleven hectares of agricultural land six years ago. But for him, there is no question of continuing to produce cane. “With an area like this, it’s not profitable enough. We made the choice to do livestock farming and market gardening instead,” confides the farmer, who raises Charolais, sheep, goats and grows onions, squash and pumpkins. “When I see how bad the cane is, I don’t regret my choice,” he confides.
Vincent Lebeau, a cane producer in Saint-Louis, devotes eight hectares to this crop and concedes that the job is increasingly difficult. “This year, producers will not make any money. We see that there are at least 40% losses on farms,” he gets annoyed. Because cyclone Belal caused crops to suffer at the start of the year. And the drought episodes of the southern winter did not help the situation.
In this context, more and more producers are turning to other crops. Between 2019 and 2023, agricultural areas dedicated to sugar cane decreased by 10%, or 2,000 hectares, in a territory which devotes approximately 21,000 hectares to it, or 55% of its fields. Which makes it the leading agricultural sector on the island with more than 15,000 direct and indirect jobs. “The sector is disappearing”, alert Dominique Clain, president of UPNA (United for our farmers).
Producers depend on subsidies for more than 75%
Especially since producers depend for more than 75% on European and state subsidies. At issue: the liberalization of the market and the end of sugar quotas in 2017 which regulated European sugar production, and had the consequence of causing prices to fall. Competition is also increasing, particularly in South America. Brazilian production reached 661 million tonnes in 2023, 7% more than in the previous campaign.
“Sugars from South American countries have flooded the European market with products similar to those produced by overseas departments, at much lower prices. But these productions do not respect the same levels of requirements in terms of social and environmental standards imposed on European producers. underlines the sugar union which defends the interests of the only industrialist on the island, Tereos.
To save the French industry, “The French government has asked the European Commission to put in place safeguard measures. This support makes it possible in particular to maintain an agricultural model based on small family farms, with an average size of 8.3 hectares. specifies the sugar union. In addition to the aid granted within the framework of Posei (Specific option program for remoteness and insularity) – the variation of the CAP for the outermost regions – subsidies compensate for the additional costs linked to transport and production. In total, “148 million euros of public funds are paid each year to support the sector, 70% of which goes directly to sugar cane producers,” specifies the sugar union.
44 million euros per year for the sugar industry
Each year, an envelope of 44 million is paid directly to the only sugar producer on the island. “It was put in place to enable the sugar industry to cope with the impacts of market deregulation,” underlines the sugar union. Aid which is also partly returned to producers to better promote the cane. Because the ton of cane is paid on average between 15 and 40 € depending on its sugar content. “For a tonne of cane valued at €38, Tereos pays €16 and €22 is paid by the State to the producers. But when the cane is not rich enough in sugar, state aid remains in the pocket of the industrialist. annoys Dominique Clain, president of the United for Our Farmers (UPNA) union.
With all the cumulative aid, producers are however remunerated “96 to 100 € per ton”, indicates Jean-Thierry Silotia, elected to the Chamber of Agriculture and cane producer in Saint-Leu, in the west. But, for him, this remains insufficient. “All our expenses have increased three or four times in recent years,” he assures. Especially since producers are finding it increasingly difficult to find labor and they are forced to mechanize their farms. Except that “mechanization degrades the quality of the cane”, underlines Olivier Mezino, owner of six hectares of sugar cane in Petite-île, in the south.
“The State is starting to ask itself questions”
At the same time, “ the State, which seeks to save money, is starting to ask itself questions,” assures Guillaume Sellier, the president of the young farmers’ union, who has returned from a stay in France to discuss with members of the government and fears that the subsidies will be called into question. “The model is no longer suitable, concedes Dominique Clain. With inflation, the cost of living, the rise in input prices, the proposed rates are not viable. » In Reunion, no cooperative exists to give more weight to producers. And “the unions are struggling to reach an agreement”.
Related News :