News Sugar
French sugar group is working on higher beet prices
The French sugar company Cristal Union has recorded solidly increasing turnover and profit figures for the 2020/21 financial year. The cooperative group aims to raise the beet price in the hope that member growers will then grow more sugar beet.
This became clear during the presentation of the annual figures of Cristal Union last Monday 7 June. Cristal Union's revenue amounts to €1,7 billion, an increase of 3,8% compared to the previous financial year. Gross profit (EBITDA) is €201 million compared to €63 million a year earlier. The group's net result is €69 million. A year earlier there was a loss of €89 million.
The beet price for the 2020 harvest is on average €25,50 per tonne. The sugar beet acreage last year was 158.000 hectares and the average yield was 10 tons of sugar per hectare. A year earlier, harvest 2019, the acreage was 165.000 hectares with an average yield of 13 tons of sugar per hectare. According to Cristal Union, the disappointing yields are partly caused by a dry growing season. The yellowing virus has also been widely spread due to restrictions on the use of neonicotinoids in seed coating, in combination with high lice pressure.
Beet price must go up
For the next campaign, the cooperative announced an expected price of €27 per tonne. “Our good results for 2020/2021 are a great lever to seize future opportunities and pay our members more so that they grow more beets,” said Olivier de Bohan, Chairman of the Board of Directors of Cristal Union. "Our goal: to achieve €30 per tonne of beet in the short term, so that beet cultivation on our farms is as competitive as possible".
Jurphaas Lugtenburg
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