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News Sugar beets

Beets not collected in UK due to logistics drama

28 September 2021 - Niels van der Boom

Those following the news can't have missed it: it's a logistical mess in the UK. After the toilet paper hoarders, the British Isles now also have fuel hoarders. This is because gas stations are not supplied due to a shortage of truck drivers. The country has an increasing shortage of 100.000 drivers. This also affects the beet campaign.

Problem after problem is piling up in the UK. Fuel shortages are just a new chapter in the book on logistics. The corona pandemic, Brexit, low wages and a chronic staff shortage are causing the logistics apparatus – the truck drivers – to get stuck in the country. In the case of fuel shortages, it is mainly a logistical problem. There is sufficient stock at the refineries, but the fuel cannot be brought to the pumping stations.

Keep longer
Earlier already could not be all milk fetched at livestock farmers. Now it is the sugar beets that are not collected by British Sugar, the processor announced. In contrast to milk, the problem with beets is less of a problem. They can stay a little longer, although the sugar loss will increase. Growers are therefore urged to think carefully about building beet heaps. It can just happen that the beets are left lying around much longer than planned and that the campaign is pushed back. Normally, the moment of harvesting and delivery is close to each other. The country does not have a long preservation campaign.

New beet price published
Processor British Sugar and industry association NFU Sugar reached an agreement last week on the beet price for 2022, which amounts to £27 per tonne. Converted €31,66. This year the 1-year beet price is €20,30 per tonne. The processor's yellowing virus program will be preserved in 2022. Every beet grower can now also use the futures market contract. 10% of the sugar volume can be sold by clicking on the futures market. Growers who have previously concluded a 2- or 3-year contract can upgrade it for next year to €29,30 per tonne. With a transport bonus of up to €2,34 per tonne, British Sugar hopes to attract growers close to the four factories.

The UK is short of between 90.000 and 100.000 drivers, industry associations say. The majority of drivers are 55 years or older, so transport is expected to remain a thorny issue in the coming years. A combination of low wages and poor working conditions means that few young people are attracted to become drivers. The alternative has always been to attract people from Eastern Europe, but that is not happening now.

5000 work visas
The government is working on a schedule where it will make 5000 work visas available immediately, the BBC reports. These visas would then be valid until Christmas. They are not only valid for residents of the EU, but also for other European countries.

This emergency move is causing political unrest in the country. After Brexit, British companies were told to hire more British employees and to train and pay those employees better. Falling back on cheap foreign labour, as is happening now, should be a thing of the past. According to the European transport organization, issuing visas is a wipe for the bleeding.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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