The European Commission has announced the total sugar production in Europe for the 2021/2022 season, which is considerably higher than last year. The sugar beet acreage is shrinking for the coming season. However, growers in several countries are encouraged to continue growing sugar beet, as is the case in the United Kingdom.
The report from the European Commission, which highlights the current sugar market in Europe, makes it clear that sugar production for the 2021/2022 season will amount to 16,7 million tons. That is 2,2 million tons more than 2020/2021 when 14,5 million tons of sugar were extracted. It is less than in the 2018/2019 and 2019/2020 seasons when 17,6 million tons and 18 million tons of sugar were extracted respectively. Germany produced the most last season with 4,7 million tons. France followed closely with 4,5 million tons of sugar, according to the report.
Since this year, the United Kingdom is no longer included in the total production. In recent years, sugar production has fluctuated around 1 million tons. If you add this production to this year's result, you arrive at 17,7 million tons of sugar, which is in line with the 2018/2019 and 2019/2020 seasons.
EU sugar beet area is shrinking
Given the current price increases, it is not surprising that fewer sugar beets are grown in Europe. In most countries the area is decreasing by a few percent according to the European Commission report. On average, the area decreased by 4,3%, from 1,39 million to 1,34 million hectares. However, the Netherlands is one of the few countries besides Germany and Sweden where the area has increased to 83.700 hectares, an increase of 1,3%. The area fell the most in Poland: from 250.600 to 225.200 hectares.
Significantly higher beet prices in the UK
Sugar beet cultivation in the United Kingdom has received a major boost for the coming seasons. The National Farmers Union (NFU) and British Sugar, the only British sugar beet processor, reached an agreement last week on a significantly higher beet price. NFU, the representative of all sugar beet growers in the UK, together with British Sugar agreed on a beet price of £27 per tonne in 2022. In 2021 the price was still £20,30 per tonne of sugar beet. If growers decide to grow sugar beet until 2024, they can even upgrade their contracts to a price of £40 per tonne of sugar beet. On the other hand, NFU reports that this price is also desperately needed due to the high input costs, which may increase in the coming seasons.
European and regional price of white sugar
The (white) sugar prices in the world vary considerably, even within Europe. The average price in May is €452 per tonne of white sugar, but the regional price of white sugar in Southern Europe is considerably higher at €548 per tonne. The European Commission splits Europe into three regions regarding sugar prices. The other two regions, Western Europe and the rest of Europe, amount to €438 and €442 per tonne of sugar. The average price of white sugar in Europe has also risen sharply. Between May 2021 and May 2022, the average white sugar price increased by €56 per tonne.