From a European perspective, the drought puts a considerable brake on the growth of sugar beet. In the Netherlands it is still expected that there will be an above-average sugar yield, but the expected top yield will probably not materialize. The energy market will soon also affect sugar production.
According to the latest forecast, the sugar yield is 14,8 tons per hectare, which is still above the 5-year average of 13,9 tons per hectare. Cosun Beet Company reports this. The sugar beets enjoyed the plenty of sunlight, but suffered just as much from the extreme drought and heat of the past period. As long as the leaves do not experience heat stress, the sugar beet benefits from sunlight, but this has not always been the case recently. Growth has therefore slowed down considerably. Without the moisture limitation, the average sugar yield would be above 16 tons according to Cosun Beet Company, which is more than 1 ton higher than currently expected.
North expects lowest sugar yield
Yields vary considerably nationally, but also within the same regions. The higher temperature in the south compared to the north plays a role in this, but the differences in precipitation deficit are also clearly visible in the fields. The impact of the drought is smallest on the northern clay soils, while up to 30% damage can be seen in spots on the sandy and valley soils. However, it is expected that the least sugar per hectare will be measured in the north. A yield of 12,5 tons of sugar per hectare is expected on the northern sands and in Gelderland. Zeeland Flanders scores the highest with 16,9 tons of sugar per hectare, followed by West Brabant and Flevoland with 16,7 tons per hectare.
From a European perspective, sugar beets also seem to be declining due to the heat and drought. In France, the differences between the plots are large and there will be both good and very poor hectare yields. In Germany, there also appears to be a smaller beet harvest, according to the sugar manufacturer Nordzucker. Although measurements indicate a higher sugar content, the total yield is actually lower.
In Poland, the third largest sugar producer in Europe, expectations are lower again. Early in the season it was dry and cold, which caused a lot of growth retardation and uneven emergence. Precipitation in July had a positive effect and allowed for some catch-up, but the drought and high temperatures that followed made the outlook more negative. In some regions the moisture requirement of the crop is worrying.
Heated energy market
It's not just the drought that is messing with sugar production this season. The heated energy market is also making itself felt at the sugar factories. Due to rising energy costs, several European countries are taking measures to reduce overall energy consumption. Large energy consumers are therefore first in line. Sugar production is one of the most energy-intensive industries. For this reason, France's two largest sugar producers, Cristal Union and Tereos, have brought forward the start of sugar production, according to the Reuters news agency.
Cristal Union and Tereos plan to bring forward sugar production by about 1 week and ramp up production so that it does not have to be active in the coldest months of January and February. The risk of energy restrictions is greatest in these months. Both sugar giants hope that this approach will not miss out on production if there were still sugar beets on the land and the factories could not operate. Of course, earlier harvesting reduces the yield of sugar beets, but those who agree to harvest their sugar beets earlier receive compensation. Sugar producers in other countries are also taking measures and looking for energy alternatives.
Cucumber season on the Liffe
Considering the sugar prices on the Liffe, it is very quiet. Just like last week, the price fluctuates around €550 per ton of sugar, but last Monday, August 29, the August high of €561 per ton of sugar was reached. The price then fell below €550 again. On Thursday, September 1, the price started at €547,20 and has risen to €555,60 per tonne of sugar at the time of writing.