Cosun allotment reduced less sharply

Cosun has announced that it will lower the allocation percentage for 2019 from 107% to 100%. The percentage was previously set at 95%.

That Cosun's allocation now toch lowered less strongly is due to the low sugar yields this year. The prognosis was still 15,6 tons of sugar per hectare in mid-July, but that has now been adjusted to 13,4 tons of sugar per hectare. In 2018, the allotment rate was set at 107%.

Root growth has been slower than usual in recent months. Suiker Unie will be producing less sugar this year and as a result the plan to keep sugar in storage until the next marketing year will not go ahead.

Production bigger again
The sugar that will be produced this year is necessary to be able to serve customers, says Cosun. This also means that production in the 2019 cultivation year can be greater again, in order to have sufficient sugar available for sales in 2020.

However, this does not mean that the payout price for 2019 will be much above the base price of €32,50, due to the disappointing results of Sugar Union. The delivery obligation for 2019 remains 85% of the previous allocation (95%). The obligation to supply therefore does not increase with the allocation. In concrete terms, this means that the delivery obligation for 2019 will remain at 80,75% of the LLBs.

Campaign ends earlier than planned
The Suiker Unie campaign will end earlier than planned, partly due to the low yields and higher processing capacity at the factories. The beet yield is expected to be 80 tons per hectare, which is 5 tons lower than Suiker Unie had expected.

This means that for many beet growers the beets have to be loaded earlier. The sugar content remains high; last week it came out at 17,9%. The tare percentage increases slightly to 8,6%.

England less acreage
In England, British Sugar has agreed with growers to grow fewer beets, partly because of the elimination of neonicotinoids. In the country, the yields are 65 to 80 tons per hectare.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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