At the end of September the industry federation
 representing EU chocolate, biscuit and confectionary manufacturers
 (CAOBISCO), welcomed the Commission's communication on reform of
 the EU sugar regime, arguing that 'the sugar regime is long overdue
 for reform'. It describes the current regime as 'economically disastrous'.
 The fact that EU sugar users, both direct consumers and industrial
 consumers pay three and half times the world market price was described
 as 'simply unsustainable'.
In contrast, the industry body representing
 sugar millers (CEFS), called for more attention to be given to the
 'fixed quota' option when looking at options for reform. CEFS maintains
 that since 1968 the sugar regime has 'played an important role in
 ensuring sustainable and high quality sugar production and in providing
 employment in rural areas throughout the EU'. It argues that 'it
 is essential that any reform of the Sugar CMO is not carried out
 at the expense of the livelihoods of European and developing-country
 producers'.
Like the Commission it sees the 'liberalisation
 option' as 'completely untenable'. However CEFS disagrees with the
 Commission's favoured 'fall in price' option, claiming it is likely
 to have 'irreversible adverse consequences for sugar production'
 in more EU regions than foreseen in the Commission analysis. It
 also notes that it would be liable to 'cause irreparable damage
 to the sugar industries of our traditional suppliers among the ACP
 countries'. CEFS describes the 'fall in price' option as essentially
 a de facto 'liberalisation' option. On this basis the CEFS strongly
 advocates a reassessment of the 'fixed quotas' option.