Inside Sugar
Europe is counting on excellent sugar beet yields
The sugar beet harvest in Europe is now well underway. The European Commission assumes a yield that is slightly above the five-year average. However, the differences between the Member States are large and regional yields also differ in the Netherlands.
In the most recent MARS bulletin of September, the European Commission assumes an average sugar beet harvest in the EU of 75 tons per hectare. This means that the yield this year would be 1,8% higher than the average of the past five years. In addition to Germany, France and Belgium, among others, the Netherlands also contributes to this optimism. Although Cosun Beet Company still assumes a sugar yield that is slightly below average.
Big plus in France
The European Commission predicts a yield of 78,2 tons per hectare for Germany and 84,6 tons per hectare for France. That is respectively 5,7% and 2,8% more than the average of the past five years. This is a much better prospect for French growers in particular than last year's dramatic season when the yellowing virus affected the production severely curtailed† According to the MARS report, the beet yield in France is 32% higher this year than in 2020.
A yield of 86,9 tons per hectare has been calculated for the Netherlands. That is 5,8% more than last year and 4,9% above the five-year average. This puts the European forecast above that of Cosun Beet Company. At the start of the campaign in mid-September, the Dutch processor was counting on an average yield of 81 tons per hectare. The associated sugar yield was estimated at 13,6 tons per hectare, which is slightly less than the five-year average.
Disappointing yield South Limburg
The first weeks of the campaign are now over and there is no reason for Cosun to adjust the forecast. It is clear, however, that there are considerable regional differences, especially when it comes to sugar content. At the end of September, for example, South Limburg was at 15% and Schouwen Duivenland at 17,2%. Normally, the Limburg loess soil provides one of the highest sugar levels, but the late start, the cool weather and the heavy rainfall result in a lower yield.
On average in the Netherlands, the counter stood at 16% sugar after two weeks of campaign. The corresponding tare percentage was just over 7%, which is relatively low. The rainfall over the past two weeks has brought more than welcome moisture to a number of areas, improving harvesting conditions. With the weather forecast for the coming period – dry and sunny – there seems to be no reason to adjust the yield forecasts.
International sugar prices on the rise
Meanwhile, other parts of the world are leaving a big mark on the international sugar market. For example, the supply of the world's largest sugar exporter Brazil is at least 10% lower due to disappointing yields due to frost and drought. Thailand, too, has to settle for less production this year. The gap this creates will only be partly filled by India, which still has a surplus of 8,4 million tons of sugar. The country sees its chance to export more.
The International Sugar Organization (ISO) assumes a shortage of 3,8 million tons of sugar in the 2021-2022 season. The global sugar supply is expected to shrink to a level of 95 million tons. This is reflected in international sugar prices, which have been on the rise for some time now. The listing for refined white sugar on the Liffe in London closed the month of September at €442,44 per tonne. The highest level in almost 4,5 years.
Jeanette Pennings
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