News sugar beets
Cosun is preparing for a more difficult sugar market
Sugar prices and sales are under pressure according to Cosun Beet Company. The cooperative anticipates this by reducing the allocation percentage for the 2025 beet harvest to 105%. In addition, the sugar beet processor expects a 6% lower hectare yield this season due to the difficult, wet spring.
According to the cooperative, the sugar market has changed significantly in recent months and the sugar processor must anticipate this. For this reason, the allocation percentage is set at 105% for the 2025 beet harvest. This is 5% lower than the allocation percentage for the 2024 beet harvest, which is set at 110%. Cosun uses member supply rights (LLBs), whereby 1 LLB gives the right to supply 1 tonne of beets (at 17% sugar) at the member price. An allocation percentage of 105% therefore means that a grower may supply 5% extra beets at the member price. If more than 105% of beets are supplied, a lower price is charged for that volume.
In addition, Cosun announces a yield forecast for the current harvest of 13 tons of sugar per hectare. This is approximately 6% lower than the five-year average. The state of the crop is very variable nationally due to the large variation in sowing times and (structural) damage due to flooding. Despite the slightly increased area this season, the total amount of sugar to be produced is expected to be lower than last year. In addition, Cosun indicates that it expects the beet area to decrease slightly again in 2025.
Jesse Torringa
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