Three contracts for German beet growers

While the 2017 harvest has been sown, North German growers have agreed a sales format with processor Nordzucker for the 2018 harvest. Beet growers can choose from 3 different contracts with a duration of 1 or 3 years. With the one-year contract you can choose from a variable or fixed price.

Growers' association Dachverband Norddeutscher Zuckerrübenanbauer has a contract with Nordzucker AG for the 2018 cultivation year agreed† DNZ announced this on April 12. As is the case this year, the Germans can also choose from 3 contract types for next season. The fixed price per tonne of beet remains unchanged at 29 euros. The price of the three-year variable contract is EUR 2 higher, at EUR 31. A three-year fixed-price contract is also offered for 2017. It will disappear next year.

Variable price up
Those who opt for variable pricing can end up with a higher price. With a fictitious average of 450 euros per tonne of sugar, the average beet price of the three-year contract is 33,90 euros per tonne. For the one-year contract, that is 31,90 euros per tonne.

Area is your own choice
The contract prices are based on a sugar content of 17,9 percent. That's the five-year average at Nordzucker. In addition, a beet pulp fee of 3 euros per tonne also applies. In the pre-delivery and late delivery you get an extra 1,30 euros per tonne. Growers are free in the area to be cultivated. If too many hectares are offered, then a distribution among the growers follows. There is room for a maximum of 1 million tons of beet in the Klein Wanzleben and Nordstems factories.

Satisfied with conditions
DNZ chairman Hans-Heinrich Philipps says he is satisfied with the contracts. He speaks of attractive delivery conditions. The foreman expects that the three-year contract with a variable price will appeal to growers in particular. That provides some certainty in the volatile market. From May, the 6.000 DNZ members can sign up with Nordzucker.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

n.vanderboom@boerenbusiness. Nl

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