News Sugar beets
European beet acreage writes red numbers
The acreage of sugar beet in the European Union will decrease by 75.000 hectares this season. This is apparent from an initial forecast from the European Commission. Due to all the malaise on the sugar market and the fact that domestic factories are under pressure, France in particular is cutting the acreage considerably.
The total sugar beet acreage for the 2019/2020 season (according to current figures) amounts to 1,547 million hectares. That is a decrease of 75.000 hectares, or 5% less. The hectare yield is also estimated to be 8% lower.
Significant decline in France
Significantly less sugar beet has been sown in France, because the area is reduced by 33.500 hectares. With over 388.000 hectares, that member state remains the largest producer in the European Union. Germany follows with around 382.000 hectares (-2,5%) and Poland is in 3rd place with 241.000 hectares (+0,8%). For the Netherlands, the acreage is set at 80.700 hectares, a minus of 6,3%. Last season, 86.200 hectares were sown.
However, all major beet producing Member States are declining in acreage, except for Poland. The United Kingdom also remains unchanged. There are 9 Member States that are likely to grant coupled aid to cultivation and thus subsidize the very low beet price.
Highest carrot yield
The highest carrot yield is expected for Spain: an average of 90,5 tons per hectare. This is followed by France (90,4 tons per hectare) and in third place is the Netherlands (3 tons per hectare). In a broadcast of BB Facts told Cor Pierik, head of agriculture at Statistics Netherlands, already talked more about European sugar beet cultivation.
In the MARS report of the European Commission, the service lowers its yield forecast for beets. This is mainly due to drought in Southern Europe and parts of Central Europe. An average of 75,7 tons per hectare means almost equal to the 5-year average and 11% above last year.
International sugar prices have recently increased. In the London futures market, the V white refined sugar quote made a gain during June after recording low prices in May. Thanks to the higher oil prices, the relatively cheap sugar is interesting for ethanol production. This does mean that a reduction in the oil price will have a direct negative effect on the sugar market. Physical sugar sales prices in the European Union remain stable at an average of €314 per tonne.
Shortage on world market
Due to the high consumption, no surplus on the world market is expected for the 2018/2019 season. Analysts expect a harvest for next season that will be well below demand. Estimates range from 2,3 million tons to 6,7 million tons. In the current season there is a surplus of 400.000 tons.
India is tightening up the sugar market this season by selling large quantities of subsidized sugar at low prices. The target export volume of 5 million tons will probably not be achieved. The news for the coming sugar cane harvest is again positive, with a yield of 31 million tons. This makes a large volume of sugar available for export.
Niels van der Boom
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