Farmers want cooperation
Is there still hope for the Polish sugar sector?
The Polish government is considering privatizing state sugar company Krajowa SpóÅ‚ka Cukrowa SA. It is investigating the possibilities for this. The Polish beet growers' organization is aiming for a cooperative structure. In their view, this can keep cultivation profitable, just as is the case in the Netherlands.
The Polish Ministry of Agriculture and Rural Development announced in mid-February that it is conducting investigations into privatizing the sugar sector. KSC, the company behind Polski Cukier, is still wholly owned by the government.
Cooperative thought
The national association of sugar beet growers calls on the government not to choose commercial parties, but to opt for a cooperative structure. In their view, all beet growers and employees of KSC should be given the opportunity to buy shares. When the farmers themselves are part of the organization, they share in the profits and there is a direct link, it says. About 2/3 of European processors are cooperative and have the best opportunities in the market, it says.
26,29
euro
It cites Cosun as an example, which demonstrates how strong a cooperative can be. It also mentions the strategy that Cosun has mapped out, in order to endure years of low sugar prices. The beet price of €45,62 contrasts sharply with the price of €26,29 per tonne paid by KSC for the last harvest. Even with the expected reduction of €5 per tonne, Dutch beet growers are paid considerably more.
Stable low prices
For 2018, Gaming Commission will hold the price same as the previous campaign. The price of €26,29 per tonne applies with a minimum of 16% sugar. €9,59 per tonne is paid out for surplus beet. If the net sales price of KSC reaches an average of more than €2018 per tonne during the 2019/444 season, growers will receive 50% of the additional yield on top of the base price.
Polski Cukier controls 40% of the Polish production and receives 5 million tons of beets annually. The acreage is 77.000 hectares divided among 16.000 growers. In addition, KSC has companies that process fruit and vegetables, but these sister companies are not comparable to those of Cosun. A Dutch beet price for Polish growers is therefore not feasible.
Sudzucker
Last year there was a lot of talk about low beet prices in Poland. Südzucker Polska, which is responsible for the cultivation in southern Poland, came up with a price of €16,63 per tonne. This to great fury from growers. The German cooperative does not have the same corporate structure in Poland. In the end, a higher price was negotiated, so that enough beets were sown in the nick of time. Low grain and rapeseed prices offer arable farmers little alternative.
Niels van der Boom
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