Not only in the Netherlands, but throughout Europe, fewer sugar beets are sown. The beet-growing countries mainly sown more grain. However, there are other factors that can cause a significantly lower beet harvest.
All European sugar beet processors are currently tormented by extremely low sugar prices. Suiker Unie's expected red figures, which the company will present definitively in mid-February, appear to be not too bad (compared to some other factories).
Area to old level
Since the abolition of the sugar beet quota, the area in the European Union (EU) increased by 13% (2017). In 2018, beets were grown on 1,61 million hectares, which means the area remained the same as in 2017. The increase is now expected to be corrected.
It is known how the carrot and sugar yields went last year. The latest production figure is 18,6 million tons of beets. This still yields 2,1 million tons of sugar for export. The European Commission (EC) expects that Europe will remain a net importer of sugar in the long term, with a stabilizing area. In 2030, production is estimated at more than 19 million tons.
More chicory?
Suiker Unie expects that 6,2% fewer beets will be sown in the Netherlands this season, good for more than 5.000 hectares. These hectares will partly be filled with more grain, especially in intensive arable areas. Anyone looking for a similar crop can also contact: Census for growing chicory. There has also been a healthy demand for fodder beets.
The minus on the surface is most likely also visible elsewhere. In Germany it is still unknown what the area will do, but a reduction is also expected here. The German beet growers are cooperatively united in Südzucker and Nordzucker. However, in Poland, for example, Südzucker is a commercial party. They play hard there and offer a bottom price. Arable farmers weigh the balance with grain maize or grain. If the price is too low, they will leave.
French reduction
The French processors, like their German colleagues, were making a loss. Cooperative Tereos has asked its member growers to sow 5% less next year. This company is the second largest sugar producer in the world. However, the French growers' association CGB does not expect the area to fall below 1 hectares, compared to almost 400.000 hectares in recent years.
The United Kingdom, where the beets are also processed by a commercial company, has the same problems as Poland. However, the difference is that the beet growers already have a price on the table (€22,60 per tonne). Anyone who has signed a multi-year contract will return to €21.50 per tonne. Many English arable farmers have already anticipated and sown grain or rapeseed.
Effects of Brexit
The sugar sector is also experiencing problems due to Brexit. The United Kingdom has an annual consumption of 2 million tons, but produces a maximum of 1,4 million tons. It imports most of its sugar from the EU. In the event of a 'no-deal Brexit', it will face hefty tariffs. It therefore sees more opportunities to source sugar from countries such as Brazil, India and Thailand.
The European Association for Sugar Producers and Beet Growers has called on the EC to enter into discussions and not to erect a tariff wall for European sugar.
Neonicotinoids
A smaller area potentially means fewer beets and less sugar. However, an erratic growing season has more effect. The year 2018 has clearly demonstrated this. A late and wet spring threw a spanner in the works from the start. The impact of missing seed coatings is also a factor that could shape the market. Various studies speak of a decline in yield of 15%, but French studies even arrive at a minus of 30%.
No matter how extensive the damage will be, it has contributed to arable farmers choosing to get their money's worth. A challenging(er) cultivation with a low reward at the end. Grain is then an attractive alternative, with better price prospects for the next 6 to 7 months.