A good number of sunshine hours has ensured good sugar levels in European beet-growing countries. This requires healthy crops, which is a particular challenge in Germany. The dreaded SBR disease has also been detected in the Netherlands. The sugar market is tasting more bitter than sweet, with prices at their lowest in over four years. This is being felt by European sugar producers, and beet prices are expected to fall sharply.
In the Netherlands, sugar levels remain stable, just above 17%. This is good for this time of year. There's little sign of an upward trend. This isn't surprising, given the high start and average high temperatures this autumn. In the southwest of the Netherlands, levels are considerably higher, often well above 18%. On sandy soils, levels sometimes lag behind. This fluctuation in levels is understandable. Yields are generally excellent in central and northern regions. This dilutes the levels somewhat, compared to the lower yields in the southwest.
Malfunctions
With the onset of more rainfall, tare levels have steadily risen slightly. In mid-October, the national average was 8,3%, with a range of 5,2% in Twente to 11,5% in eastern Flevoland. The campaign has occasionally been less successful, with processing levels exceeding 60.000 tons per day. Only the Groningen plant was plagued by a few disruptions this week, and also in early October, which briefly halted processing.
In early October, the IRS reported that it had again detected the dreaded SBR disease (Basses Richesses Syndrome) in at least four samples this season. This isn't the first time, but it is a worrying development that is gripping the European beet sector. The damage is greatest in Germany, where more than 100.000 hectares have been infected, resulting in significant yield losses. Incidentally, this year marks the first stabilization in the number of infections. SBR, which is transmitted by the leafhopper, can also have a significant impact on potatoes and onions. a pity Concerns. Control is virtually impossible due to a lack of effective insecticides. Winter grain is a common crop in which the leafhoppers overwinter. It is recommended not to sow wheat or barley after infected beets.
Greater French yield
In France, the beet yellows virus is the primary cause of yield losses. According to the ITB, the French counterpart of the IRS, this causes yields to fluctuate between 40 and 100 tons per hectare. The damage is exacerbated by drought damage. The average sugar content is 18%. The Ministry of Agriculture, Nature and Food Quality (Agriculture), Agreste, has raised its forecast for the current campaign to 34,2 million tons. This represents a 5% increase compared to last year and a 10,2% increase over the five-year average. The average French beet yield is 86,3 tons per hectare.
The WVZ, the German sugar producers' association, estimates 28,25 million tons of beets in the country in its most recent estimate. This is a slight decrease compared to the previous forecast. The yield per hectare is estimated to be lower: 80,8 tons instead of 82,6 tons. However, the average sugar content is higher (17,6%), resulting in a slightly higher total sugar yield, estimated at 4,419 million tons.
Lowest sugar price in four years
European beet processors are struggling with persistently falling global sugar prices. The FAO Sugar Index fell by more than a fifth in September, to its lowest level in four years. The London Liffe refined sugar futures market has been falling significantly since mid-September. On October 22, the contract reached a low of $433,40 per tonne, equivalent to €372,98. This is the lowest price since July 2021. The US sugar futures market even fell to its lowest level since April 2021.
One of the companies struggling is the Austrian food group Agrana. This spring, it announced it would close two sugar beet factories in Austria and the Czech Republic this year. This leaves Austria with only one factory, in Tulln. The country's sugar beet acreage decreased by 18.413 hectares this year to 25.000 hectares. This is the smallest sugar beet acreage ever. Agrana cannot guarantee that it will be able to keep its only remaining factory open in this sugar market, CEO Stephan Büttner said in a recent radio interview.
Deep red numbers
The group achieved an EBITA of €28 million in the first half of the fiscal year (March through August). This represents a 50% decrease compared to the same period before. Revenue fell by 9%. The agricultural commodities division was largely responsible for this decline. Other divisions performed reasonably well. Agrana's sugar division achieved revenue of €309,6 million in the first six months, compared to €489 million a year earlier. EBITA fell sharply: from -€11,1 million to €36,3 million. This is due to the closure of two factories, which incurred costs of €20 million.
The situation at Südzucker isn't much better. In the first six months of the fiscal year, revenue fell by 17,5%. The entire group achieved a profit of €4,2 billion, compared to €5,1 billion the previous year. EBITA halved during this period, and the sugar division suffered a loss of €89 million.
Falling beet prices
Low sugar prices on the European and global markets, along with disappointing financial figures for beet processors, are having an irreversible impact on beet prices for 2026. In Poland, processors are preparing their growers for a contract price of €32 per ton (at 16% sugar). Surplus beets are being settled at €18,90. This year, the contract price with the national beet processor KGS is €33,50. Last season, the net payment was €46,50.
In England, British Sugar has already presented growers with a contract for 2026. A one-year contract works out at £30 per tonne (the equivalent of €34,37). Depending on the type of contract, prices for next year will drop by £3 to £6 per tonne at the only national sugar processor. Advocacy group NFU Sugar says it is satisfied with the contract offer, which offers growers certainty. Whether the beet growers share this view is questionable, judging by the numerous reactions on social media. This year, with a slightly higher price, there is already no profit to be made from beet cultivation. Next season, the situation will be no better, they say.
Result Aviko solid
Royal Cosun is moving against the grain compared to its European counterparts. The guaranteed minimum price has been raised to €37,50 per tonne, excluding member fees. Last season, it was €16,50 per tonne, with Aviko accounting for a significant portion of this financial bonus. Despite the turbulence in the French fry market, "Aviko has had a solid year so far," Cosun chairman Arwin Bos recently stated. This allows Cosun to continue guaranteeing a beet price above the European price level.