Kirja edastamine

To the Minister of Trade of Estonia:

Dear Minister,

I hope this email finds you well.

On behalf of CEFS (European Association of Sugar Manufacturers) Director General Ms Marie-Christine Ribera, please find attached a letter outlining our concerns regarding the revision of the Late Payments Directive and its potential impact on the EU sugar sector.

The revision of the Late Payments Directive has significant implications for the EU sugar industry, which operates under unique conditions that distinguish it from other agricultural sectors.

• The EU beet sugar industry is heavily dependent on seasonal cycles, with sugar beet harvests occurring once a year. This requires a well-coordinated financial and operational structure to manage the long intervals between planting and harvesting.

• Additionally, sugar beet processing into sugar involves lengthy production cycles requiring significant upfront investment and operational costs, making timely payments critical. Disruptions in cash flow can have severe repercussions for sugar manufacturers.

Therefore, CEFS strongly opposes the European Parliament's amendment allowing operators to extend business-to-business payment terms to 60 days through explicit contractual agreements. This amendment could create cash flow issues where sugar manufacturers are required to pay for sugar beets within 30 days while potentially waiting up to 60 days for payments from sugar users (secondary processors and retailers). This disparity between payment terms would increase costs for sugar manufacturers, as the cash flow shortage would need to be financed with debt or reallocated capital.

In light of these serious concerns, we urgently request that the EU Council rejects the European Parliament's amendment, which would undermine the financial stability of the EU beet sugar industry.

Thank you for your attention to this critical issue. We look forward to your understanding and support.

All the best, and wishing you a pleasant day, 

Iñigo

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