Cosun reduces allocation for 2019

Cosun announced on Friday 24 August that the allocation percentage for 2019 will be 95%, compared to 2018% in 107. The cooperative has also opened early orders for beet seed for 2019.

The allocation percentage for next year is therefore 12% lower than this year. With that late Cosun know that it wants to produce less sugar in 2019. According to the cooperative, this has to do with the very low sugar price on the world market, which makes export unattractive.

High production
Sugar production was high last year, both in the Netherlands and in Europe. This had everything to do with the high yields per hectare and large areas. That means stocks have increased. "This year production will probably be lower, but it will remain around the long-term average. That means that the stock situation will hardly change," he said. Cosun.

Due to the low export price, according to Cosun, it is not attractive to export sugar and it is more favorable to store the product and sell it next year. "Lower production in 2019 is therefore sufficient to achieve regular sales."

Early order beet seed
In addition, Cosun has announced that it has prepared the early order for beet seed for 2019 on Monday, August 20. It will remain open until September 5. In the early order, growers can order beet seed for 2019, with a discount of approximately 5%.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.