BB 10 years Just call
'Beet cultivation remains risky for the time being'
Boerenbusiness has been around for 10 years and is therefore calling prominent figures from the Dutch agricultural sector. What is going on in their field? What do they expect for the short and long term and how can entrepreneurs anticipate this? We kick off with Dirk de Lugt, chairman of Royal Cosun.
For his position as chairman of the Royal Cosun cooperative, De Lugt travels throughout Europe from his home base of Texel. For him, 2020 is also all about working from home. This offers opportunities, such as the opportunity to quickly drive a few rounds on the tractor on your own arable farm before a meeting. "I did make up for that damage," he says.
The sugar sector has had two difficult years. How are we doing now?
"Termination of the sugar market regulation in Europe has left huge holes in the sector, resulting in sharp price falls. This has also not left Cosun and Cosun Beet Company (CBC) untouched. There is now stability. The sugar price worldwide is cautious. up, partly due to expected shortages. CBC will start making money again. We will see a small loss for the sector throughout Europe this year. How successful beet cultivation has been for growers depends on the growing region, which is linked to the weather conditions. Even now, there are dry areas where the yield lags behind. A small balance can be achieved where the beets grow better."
What impact has the corona crisis had on the sugar sector so far?
"At the beginning, sugar was hoarded, so that CBC was ahead of the forecast in terms of sales. The world sugar price quickly fell by a quarter, only to increase by the same level in the following 3 months. There is still a local sugar shortage in the EU. Here we sell the most product. In fact, 2 years more was imported than exported. The sugar of the 2019 campaign was sold on time. Sales were slightly delayed, so we started the new campaign with more sugar in the silos. This delay is now That is why we have chosen to reduce the allocation by 2021% for 3. This means a beet acreage of 80.000 hectares in the Netherlands. The 5-year average yield has decreased due to drought, emergence problems and virus pressure in the last 3 years."
At the beginning of August, the neonics discussion flared up now in France about a possible derogation spoken† Is this also conceivable for the Netherlands?
"The proposal of the French Minister of Agriculture will be discussed in Parliament at the beginning of October. The regulation, as proposed now, will apply for 3 years. The requirement is that 1 year after beet cultivation, no flowering crops may be grown, for example grain. In Belgium, this is the case. 3 years, which makes that arrangement not attractive. With 1 year we can also work in the Netherlands, although it is not a solution for everyone. The expectation is that France will agree. In Germany, there is also talk of an exemption, which greatly enhances the Dutch position helps. We have seen a lot of damage and more environmental impact in the last 2 years. Our commitment is for an exemption until there are varieties with resistance to the yellowing virus. It is estimated that this will take another 3 to 5 years. In the market we see that there are no there is a demand for neonics-free sugar. We would like to make cultivation more sustainable, but this now goes hand in hand with neonics. Breeders are working hard on resistance to fungi. We also want to be independent be more aware of crop protection."
The Mercosur dossier is also on the political table. How do you view this from the sugar sector?
"It is true that sugar, as a direct raw material, can be imported more from South America under this trade agreement, although it is not an established fact. It is also expected that more specialties will be exported from Europe, which benefits our sector. If you look at the balance sheet, it is estimated that it will remain in balance. Cosun sets strict conditions for a level playing field. We have the lowest CO2 footprint for sugar in the EU. What is imported scores worse. Cultivation is subsidized in many countries without sustainability requirements , the sugar cane is burned and sometimes child labor is involved. We have to be critical of production standards."
What is Cosun Beet Company's long-term vision for beet cultivation?
"The main goal is to fully enhance the value of the beet to make other ingredients and materials. We are investing heavily in this. In the near future we will take further steps to reduce our share of sugar sales and increase income from other sources. This vision is in line with the social wishes: less CO2 emissions and less use of fossil fuels such as oil and gas The beet has it all, but there must be a market. Only then can we earn money. profitable balance for the grower. We extract substances for the chemical industry from the fibers. Demixers that are used in paint and, for example, sauces and dressings, but also as raw material for cleaning and disinfectants. We extract green gas from the beetroot tips. Another product is vegetable protein from beet leaves. With these products we are entering a market with strong purchasing power, but it still has to happen. The first contracts with customers are now being closed."
Dirk DeLugt
Beet growers have not had it easy with emergence problems, high virus pressure and drought. What future can you offer?
"At the top it is stated that the grower must have confidence in the cultivation. This is the only way they can develop further. Sugar beets were a low-risk crop for years. That has changed. You have to be on top of it to achieve a return, because the coming years will remain risky. This must fit into your building plan and strategy. Expanding the building plan has a positive effect on mold pressure. You may actually earn more at the bottom of the line. With the IRS, we conduct a lot of research into damage thresholds. Through intensive monitoring, using sensors, It is easier to determine the correct spraying moment Minimal use with optimal results The range of resources is shrinking Certainly in the field of weed control We believe that the approval process must be looked at critically No bans until we have an alternative Whether this is an alternative remedy, natural control or breeding, the market for organic sugar is growing minimally and the return is n still not. That's not an option."
The sugar sector has partly recovered from the corona crisis. What about the other Cosun companies, especially Aviko Potato?
"In recent years Aviko has made a significant contribution on top of the beet price. I can predict that this year will be different. Fortunately, Duynie, SVZ and Sensus contribute more to the group result. Think of it as a building plan: you have to have spread. 1 pillar, it can go up hard, but it can also go down. It is too early to make firm statements now. We are now seeing a recovery at Aviko. The other companies have not or hardly been affected by the corona crisis."
Niels van der Boom
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