Sugar beet cultivation has become more challenging with the elimination of the neonicotinoids seed coating. This is noticeable in the free market price of member delivery notes (LLB) of the Suiker Unie cooperative. What also plays a role are the stricter rules regarding beet tourism.
The free trade in member delivery notes, simply called LLBs, of the Royal Cosun cooperative is a specialized market in which only a handful of brokers are active. Furthermore, not all LLBs are traded via this route. A total of 270.000 LLBs were traded last year, it shows Numbers from Cosun that Boerenbusiness asked. The cooperative could not say whether this is more or less than average.
More supply than buyers
Cosun members jointly hold 6,5 million pieces of evidence. Of these, 4% found a new owner last year. It is not known what this will be like this year. Insiders report that they currently have a sufficient supply of LLBs, but also indicate that it is difficult to find buyers. Those who wanted to expand beet cultivation have often already done so. The urgency is missing.
A supply that (significantly) exceeds demand has negative consequences for the price. The market mentions a level between €33 and €36 per proof, depending on the total number per tranche. This is approximately €10 lower than 1 year ago and almost €20 lower than in 2017. The peak then was €55 per member delivery note.
Offer from Flevoland
Most evidence is offered for sale in Flevoland. The reason for this is threefold: relatively many arable farmers in this area are switching to organic, the cultivation plan is very intensive and the growers have sometimes lost leased land from the Central Government Real Estate Agency, meaning they lack sufficient surface area.
Supply is also becoming available from other parts of the country. The main reason for this is that sugar beet cultivation has become more unpredictable, partly due to the disappearance of neonicotinoids. The start of the growing season was far from smooth. Many of the beet plots in the south-west of the country suffer from yellowing disease, which costs a lot of sugar. According to As a result, Suiker Unie has reduced the sugar percentage to 1,5%.
beet tourism
What also plays a role is the stricter regulations regarding so-called 'beet tourism'. This will still be done by the cooperative Allowed, but under conditions. Anyone who traded their surplus beet in the past cannot now do so freely. The members who have plenty of LLBs are therefore selling some of them.
Most buyers are located in the Oldambt and the Veenkoloniën. In these regions, the construction plans still have room for beets. However, growers are also more likely to look for alternatives here and do not simply expand for that reason. The heavy soil in Groningen and clay areas in the southwest also plays a role in the fact that growers are currently drawing up their construction plans. As a result, LLBs are already being traded, or the choice is being made to sow wheat.
More acreage
Suiker Unie cooperative needs more sugar beets for 2020. This year the allocation is 100%. The allocation is for the coming growing year established at 105%. The area therefore remains stable at 85.000 hectares. This year, according to data from Boer&Bunder (from the Combined Assignment), the area amounts to 79.110 hectares. In addition, fodder beets are grown on more than 2.000 hectares. With over 13.000 hectares, Groningen has the most beets.