Most Dutch growers have no reason to complain about sugar beet yields. We'll just have to hold on to that, because the sugar price isn't going anywhere right now. This problem isn't unique to the Netherlands, by the way. In the US, beet growers are reporting that the price is threatening to fall below cost. Because many growers in the US have a mandatory delivery obligation for beets, ceasing cultivation isn't an option either.
The sugar market briefly regained momentum, but in recent days, prices on the futures markets in London and New York have been falling again. Relatively good harvests of both sugar beets and sugar cane have put pressure on the market.
Sugar beet yields are generally good in the Netherlands. The sugar content is high, averaging 17,2%, according to Dutch beet processor Cosun. Tare is relatively low, at 7%. Cosun has revised its yield forecast upwards to 15,5 tons of sugar per hectare.
In Germany, beets have also performed quite well this growing season, Südzucker writes in its notes to the half-year figures. However, there have been local reports from SBR and Stolbur, which means Südzucker is cautious about making statements about average hectare yields. Due to a significant reduction in the beet acreage, the German processor does expect to produce less sugar this year than last.
Sugar division costs money
The sugar producer's figures are disappointing. In the first half of the 2025/26 fiscal year (from March 1 to August 31), the group's revenue amounted to €4.199 million. Last year, Südzucker generated revenue of €5.092 million. EBITDA (operating cash flow) fell from €420 million in the first half of the previous fiscal year to €189 million this fiscal year. Revenue in the sugar division dropped from €2.134 million to €1.389 million. The sugar division is reporting an operating loss of €89 million. Even the substantial cost cuts during the 2024 campaign were not enough to offset the sharp drop in sugar prices, the company writes in its explanatory notes.
The sugar sector isn't just struggling in Europe. Growers in the US are also concerned about the profitability of sugar beet cultivation. The sugar beet acreage is the smallest since 1982, but that's not enough to keep prices stable. According to Reuters, the price for refined beet sugar is 33% lower than last year and at its lowest level since 2019. Meanwhile, a lot of sugar remains in the market, and that will continue until at least 2026.
Ozempic
Demand for sugar among American consumers is declining. Research firm OC&C Strategy Consultants estimates that Americans are spending 6% less on candy and chocolate and 10% less on sweet baked goods. It also reports that nearly 9% of the US population is using weight-loss supplements like Ozempic or Wegovy.
For American farmers, beet cultivation was a stable factor for years due to the highly regulated sugar market. However, high cultivation costs, increased competition from sugar from outside the US, and the trade war have made beet cultivation unprofitable for many growers. As an example, one grower told Reuters about a new beet harvester. A new machine built in Europe cost around $750.000 five years ago; now, it's over $1 million.
Stopping beet cultivation is difficult. Many growers have shares in the local cooperative sugar factory with a delivery obligation. "If you want to get rid of the beets, you have to find someone willing to take over that quota," one grower told Reuters.
Sufficient rain in India
Sufficient monsoon rainfall in India has boosted expectations for the sugarcane harvest. According to the Indian Meteorological Department, an average of 937 millimeters of rain fell in India during the monsoon season (June through September). This is 8% more than the multi-year average and the highest monsoon rainfall in five years. Partly because of this, and due to an expansion of the planted area, the Indian Sugar Association expects the sugar harvest in the 2025/26 season to reach 34,9 million tons. By comparison, last season's harvest was 26,2 million tons. This was, however, the smallest harvest in five years.
Lower sugar content
More favorable news for the sugar market comes from Brazil. According to Unica, the sugar content of cane processed in September is lower than last year in this month. 154,58 kilos of sugar were extracted from a ton of cane, compared to 160,07 kilos from a ton of cane last season. Sugar and molasses exports from Brazil are also slowing down. According to the Brazilian Foreign Trade Administration, Secex, Brazil exported 3,245 million tons of sugar in September. This is 16% less than in the same month last year. The price for exported sugar was also considerably lower, averaging $403,40 per ton this September compared to $459,70 per ton in September 2024. In the first nine months of this calendar year, Brazil exported 23,4 million tons of sugar. This is 17% less than in these months in 2024.