In many European countries the lime kilns have ignited again, the harvesting machines have started and the beet flow has started. Once again, the European beet sugar harvest is expected to fail to meet demand. A difficult growing season also affects beet and sugar yields.
In the 202/23 season so far, almost 2,4 million tons of sugar has been produced imported in the EU, compared to 1,3 million tonnes in the two previous seasons. The European beet area has fallen again. A higher beet yield will somewhat compensate for the lower sugar production, according to the European Commission. The latest yield estimate is 15,5 million tons. That is 1 million tons more than in the 2022 harvest year.
More beets in Germany
The beet area in our eastern neighbors has increased slightly, to 364.500 hectares. That is almost equal to the five-year average. The average yield is estimated at 73,5 tons per hectare, according to the German Sugar Processors Association WVZ. This brings the total beet harvest to 26,78 million tons. That is 1,42 million tons more than last year, but the beets are slightly less sweet. Total sugar production amounts to 4,23 million tons; 370.000 tons more than in 2022.
The figures are based on trial harvests from mid-August. It is possible that the heavy rainfall at the end of August and then lots of sunshine at the beginning of September will cause the numbers to rise slightly.
In France, Tereos, the world's second largest sugar producer, started its 8/2023 beet campaign on September 24. The first factory has started in Lillers, Pas-de-Calais. The last of eight factories will start processing the beets on September 26. Tereos starts processing sugar beets about two weeks earlier than has been usual in recent years. Yields are better due to regular rainfall, and the problems with the yellowing virus have also remained within limits this season. Tereos has retroactively increased the beet price slightly, to €43,10 per tonne of beet, due to better than expected sales prices.
Beet prices higher, but not high enough
The beet campaign also started very early in the United Kingdom. The first of four British Sugar factories opened on September 4. The second followed September 11th. How the beet harvest in England will turn out this year has not yet been calculated. However, there is a dispute between the beet processor and farmers' organization NFU about the price level for next year. In the current season, British Sugar is paying £40 per tonne (€46,65 equivalent), an increase of almost 50% compared to last year. NFU is happy with this, but demands a further price increase for next year.
For 2024, the processor plans to pay a lower price of €43,73 than in the current campaign and that has gone down the wrong way with NFU. Especially because the world market price for sugar has reached a historically high price level. According to British Sugar director Dan Green, the price offered is in line with the market, given the pricing of other crops.