Just like in the Netherlands, more and more European countries are ending the beet campaign this month. They often find the same thing: a lower sugar content and varying yields due to a growing season with extremes. The sugar price is under some pressure on the futures market, despite below-average sugar cane harvests in Asia.
Cosun Beet Company made the Numbers en beet price for the 2023 harvest announced, emphasizing that it was a challenging growing year with extreme weather conditions. The sugar content decreased early in the winter months and was 15,6% nationally, almost 1% lower than 2022. Other figures such as the tare percentage were also not that bad.
Half of Western Europe is dredging up the beets
Late spring, followed by a dry period, caused growth to lag behind. Although this growth retardation improved considerably during the course of the season thanks to sufficient moisture and higher temperatures, a soaking wet autumn and winter led to many beet harvesters having to dredge. This did not only apply to the Netherlands, because in other European countries too, harvesting did not proceed automatically due to wet conditions and the sugar content is still somewhat behind other years. In addition, the yields also vary considerably and the harvesting leaves its mark on the field.
Like Cosun, several European sugar producers have completed or are in the final stages of their beet campaign this month. Our southern neighbors were among the first to indicate that the campaign was over at the end of January. The Belgian Tiense Suiker reported that the wet harvest, sufficient supply and transport led to many challenges during the campaign. The factory processed a total of 3,5 million tons of beets this campaign. Despite late sowing, carrot yields improved well due to favorable weather with moisture in September and October, but sugar formation lagged behind. At Iscal, the other sugar producer in Belgium, the end of January deadline to end the campaign was not met, various Belgian media reported. A limited portion of the beets had not yet been harvested and some were damaged due to frost, which reduced capacity. At that time, Iscal made a request to Cosun to process the beets in the factory in Dinteloord. That was rejected because it had just completed its difficult campaign.
In France, the 2023/24 beet season was also a year full of challenges. Sugar processor Cristal Union processed the last beets in the second week of February and according to the sugar producer it was a challenge until this last day, referring to the wet conditions. The company said its industrial sites were able to adapt operations to challenging weather conditions during the season. The sugar producer achieves an average yield of 86 tons of beets, which is around the 5-year average with a sugar content of 17%.
In the north of France there are still some beets on the land due to the high rainfall, no different from Belgium and the Netherlands. For example, at the end of 2023, several plots of land were under water due to flooding, such as in the French department of Nord de Calais. It will not be much in total, but the sugar producer does not make any statements about hectares. Tereos, another major sugar producer, has not yet reported the end of the beet campaign and has several sugar factories operating in the northern regions. They may provide clarity about the beet campaign in this area in the coming weeks.
Varying Yields
The beet campaign in the Scandinavian countries was also completed last week, Nordic Sugar reports. It's starting to get a bit monotonous, but here too the growing season and the wet harvest are reflected in the figures of the sugar factories. For example, the sugar content is lower than in the last five years in Denmark and the tare and extractability are disappointing. The factory in Sweden also reports a very challenging year. In Poland, the average beet yield is 60 tons of beets per hectare, while the sugar content is 15,4%. This is reported by sugar producer Pfeifer & Langen Polska. Sowing was significantly delayed due to low temperatures and precipitation, while in the summer drought was the problem and disrupted growth, especially in central and western Poland. As a result, the yields were also very variable.
Nordzucker also concluded his 14/2023 campaign on February 24. The company announced on Tuesday, February 20, that the campaign was one of the longest and most challenging in recent years. Nordzucker, which operates in seven different European countries including Germany, said its sugar yield per hectare is in line with the five-year average in Europe and averages around 75 tonnes per hectare. They also indicate that the sugar content on average lagged somewhat behind other years.
Sugar quotation under pressure
Sugar prices in London and New York are under pressure on the futures market. The quotations had climbed again in January, but this trend has now come to an end. The above-average Brazilian sugar production of 2023 puts pressure on the futures market due to the large supply, but an export capacity that is already fully occupied means that exports are slower than they would like to see. In addition, less sugar cane is used for the production of ethanol because sugar is more profitable than this fuel. Also in view of the coming season, more sugar cane will be converted into sugar.
Despite the above-average production in Brazil, global concerns about the sugar supply are not being suppressed. In Asia, sugar producer associations such as the ISMA in India but also the Thai sugar factory cooperative confirm below-average sugar production. In Thailand, the lowest yield in 13 years is even achieved and 32% less than 2022/23. While these two countries are both in the top five largest sugar exporters in the world. The white sugar contract in London stands at $624 per tonne at the time of writing. A week ago, the price was trading between gains and losses at around $650 per tonne. The raw sugar contract in New York at the equivalent of $504 per tonne.