Sweet profit beet cultivation evaporates quickly

Apart from a few cases, many arable farmers are disappointed in the sugar percentage of the beets delivered this season. Especially on clay soil, this sometimes drops to 15%. Cosun Beet Company attributes this to the past growing season. In addition, it was "just not sugar weather", says agricultural director Gert Sikken. "Sunny days and cold nights yield sugar, this autumn was far too warm."

Tough season
From the start, many beet plots have had a hard time. The second year without the seed coating with neonicotinoids not only made emergence challenging, but the yellowing virus also emerged at the beginning of the summer. The consequences may be smaller than in, for example, the United Kingdom, Germany and France, but it is yet another setback. Leaf diseases, mainly Cercospora, have also caused considerable damage. That costs sugar. The season started with a setback for the sugar processor, when it turned out that the widely communicated quality figures were incorrect. In mid-January, another error was discovered, this time in the WIN percentages.

This season too, Cosun Beet Company (CBC) received questions about the sugar levels during the winter meetings. "That happens every year," says director Sikken. "Unfortunately, we are already dealing with two seasons with low levels. In 2, the sugar yield was significantly higher, but the root yield lagged behind. In the Netherlands we always have a relatively low sugar content, compared to elsewhere in Europe. This has mainly to do with the climate. Our soils and the relatively high nitrogen level also play a determining role."

Realistic quality
During the current campaign, the average sugar percentage is still 16,2%. That is 0,1% lower than last season. In 2018, the average was 17,4%, the highest in 10 years. The average over 10 years is 16,8%. Isn't an average of 17% - on which the payout price is based - unrealistic? Sikken: "At the time, we made an arbitrary choice to go for 17% and not 16%. It was our ambition based on the knowledge we had at the time. There was no question of a ban on the neonics seed coating at the time. Ultimately, it is mainly the climate affects the levels."

Below-average sugar levels are not an unknown phenomenon, especially in Flevoland and the southwest. In Eastern and Southern Flevoland because of the soil characteristics. The clay soil supplies a lot of nitrogen, which reduces the content. When it started to rain last autumn, after a dry and hot period in September, the beets took up nitrogen again and growth started again. That costs sugar. The high nitrogen content in the beet means a low WIN content. "Rhizomania plays a determining role in the southwest," says Bart van der Weijden of seed supplier Strube. "A distinction is made between high-content varieties, neutral or 'heavy' varieties. Only low-content varieties are available for rhizomania resistance. Growers are obliged to choose AYPR resistance and that costs sugar."

Unprecedented performance
In the past, the very high root yield here compensated for the relatively low sugar contents. Now that the root yield is also under pressure, the yield is affected. Van der Weijden is proud of the achievements of breeder Strube and his colleagues. "We have gone from 10 tons of sugar in the 80s to 14,7 tons now, plus various resistances. There is no crop that can match that. The gains in breeding have been enormous. Resistances are crucial to reduce cultivation costs control, especially with a marginal crop such as beets.

Are we looking at the Unitip figures for the 2019 harvest year, it appears that the average hectare yield was 81,5 tons of root yield. With an average of 16,3% sugar, this is a yield of 13,2 tons of sugar per hectare. The average WIN was 89,3 and the tare was 11,6%. The beet price communicated by Cosun is based on 17% sugar and 91 WIN. For every percent more or less sugar, 9% payment price is added or reduced. This is calculated in tenths of percent over all delivered tonnes. Sikken: "If the beet contains 1% more sugar content, then this is 6% more sugar volume. The transport and processing of sweet beets is cheaper, because the yield is higher. Hence the 9%. The more efficiently we can produce sugar, the higher the payout price.

Zero revenue
In 2019, carrot and sugar yields varied widely. From 72,8 and 11,5 tons in the southeast to 96 and 15,8 tons in Flevoland. Converted to the payment price, with a reference of €39 per tonne, you arrive at €33 to €36,10 per tonne. This makes a gross return of €2.403 to €3.463,20 per hectare, including surplus sugar. Subtract the variable costs and processing costs and a very meager return remains to pay the costs for land, buildings, etc. The costs in 2020 will ultimately be even higher. Due to more crop protection products and irrigation in the eastern and southern Netherlands. For the past harvest year, a price of €32,50 per ton is currently expected at 17% and 91 WIN. If you supply beets at 15%, the price drops to €26,65 per tonne.

CBC sees the 2020-21 season as an extremity. "You should not immediately change the policy after 1 or 2 years," says Sikken. "You can lower the quality figures, but this does not mean a grower gets more money at the bottom line. It is negative for the entire cooperative." A small amount of hope is derived from international sugar prices, which showed a clear upward trend in 2020. Growth has now leveled off, but the market has structurally improved.

Beet vs wheat
Anyone who can deliver 9 tons of wheat at €185 per ton instead of beets also ends up with a paltry amount of €1.665 per hectare. Even at €200 it remains marginal, but the risks are small and what appeals to growers are positive consequences for the soil. Anyone who fears that they will not be able to fill their quota or no longer wants to do so can sell some or all of their LLBs. Yet the market is very quiet. Most of the trading is done before the new year. Intermediaries note that there is demand but no supply. Either companies wait, or they have already made a choice. Cosun also notes that it is quiet. When a grower says goodbye, it is usually not to grow grain. The released land is used to be rented out or used for high-yielding crops.