News Sugar beets
Up or down for Belgian beet factory
A group of Belgian investors and beet growers came up with an ambitious plan in 2016; they were going to build a sugar factory (as a cooperative) in Seneffe in Wallonia. Nearly 3 years later, the plan reaches a breaking point. The farmers have until February to decide whether they will join in, thus granting the factory the right to exist.
In their membership magazine the Confederation of Belgian Beet Planters (CBB) describes the current situation regarding the cooperative's initiative CoBT. They represent the interests of the beet growers who currently grow sugar beets for Iscal Sugar and Tiense Suiker.
Take decision
To generate a future for cooperative sugar processing, something is required. Those who sign and commit (financially) must do so until at least 2032; even if the initiative is less rosy than outlined. According to CoBT, there are 1.600 interested companies from Belgium and France; some of them now grow beets for Iscal or Tiense Suiker. Some are considering switching, while others prefer to grow for 2 parties.
The deadline has been set for January 31. This is the registration deadline. "Growers then have to pay an advance," explains CoBT coordinator Benoît Haag in the Bietplanter. "This advance amounts to €2.000 (the cooperative share) and 25% of the company in shares for the supply of beets. 1 share means €3.000 per 100 tons of beets, with a minimum of 3 shares." In addition to these shares (B), there are also other shares (S), for sympathizers who do not grow their own. A total of €327 million is required.
1.600
businesses
Once the money is received, construction can begin. The factory now exists purely virtually. CoBT's ambition is to start construction in mid-2019. The 2021 harvest can then be processed first in Seneffe. The aim is a minimum production of 1,4 million beets.
New contract form
Besides the fact that interested parties must commit to 13 years, there are more points to consider. There are many questions about the supply contract and the income. The contract differs from the contract that current processors offer. The CoBT buys the whole, un-topped beet, and applies a theoretical recalculation of the weight. The sugar content is measured per freight, but not used as a reference.
The payment is based on the average sugar content of the campaign. The price increases by 9% for each percent of sugar that the freight is above the factory average, and vice versa at a lower percentage. For preliminary delivery, the growth curve per year is taken into account. There is also not one fixed rate for tare, but a rate that varies based on the daily average. If the harvest is late in the season and the tares are high, you will receive less discount (because the average is high).
In addition to the favorable conditions, CoBT tries to convince interested parties with a high payout price. According to Haag, the extremely modern factory ensures that the return is very high, which also means the margin is higher. This directly benefits the grower.
Sector divided
However, not everything is all set and done. This partly has to do with the umbrella organization (Sopabe-T), to which Iscal and Tiense are affiliated. According to Marcel Jehaes, the chairman of the CBB, some are trying to play the CoBT and Sopabe-T against each other. This results in a divided Belgian beet sector.
Niels van der Boom
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