Last beet price CSV Covas is lower

The last sugar beet price that growers cooperative CSV Covas pays out to its members is lower than last season. It thus follows the trend of declining prices that started in the 2014-2015 season. The southeastern growing area had to deal with many weather extremes during the season. The costs thereof are borne jointly.

For the 2016 harvest, the average price of CSV Covas is 40,83 euros per tonne. That is a decrease of 1,40 euros per tonne compared to the previous season. The cooperative announced this news on Thursday 23 February. The biggest cause of the price drop is the lower sugar content. On average, it was 16,33 percent during the campaign, compared to 16,67 percent in the previous campaign. The basic price for quota beet is 38,50 euros with 16 percent sugar and a WIN number of 87.

On the beet delivered until October 22, 2016, the early premium is compensated for the missed growth in tons of beet and sugar. The aim is to create equal, average yields per hectare. The amount required for this compensation is paid jointly by the members. This 'equalization contribution' amounts to 42 cents per net tonne of beet delivered.

After two peak years, during the 2012-2013 and 2013-2014 seasons, the beet price fell sharply. From a good 60 euros to a good 40 euros per ton. After the 2014, 2015 and now 2016 harvest, the payout price continued to decline. The ten-year average is EUR 48,76 per tonne. The 2016 price is 16 percent below that.

Compared to the beet price that Cosun pays out the price is 3,32 euros per tonne lower. However, Cosun applies delivery terms of 17 percent sugar and a WIN of 90,9. The basic price for quota beets is the same: 38,50 euros.

2016 was not an easy season for beet growers in the southeastern area where CSV Covas operates. The influences of the flooding during the spring are clearly reflected in the quality of the beets. It is the last beet price that the cooperative pays out to its members. From 1 May, all beet growers will join Cosun and it will cease to exist.

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