The Dutch sugar beet shows a slightly higher sugar content, but one that remains below the multi-year average for October. The yields, meanwhile, are quite ordinary. A small positive note is that the harvesting is generally going well.
The two factories of Cosun Beet Company, in Brabant and Groningen, are running at full capacity and processing over 56,000 tons per day. This was reported by the processor in a news update. This means that campaign 2024/25 is off to a smooth start. In recent years, this has not always been the case, as both locations were sometimes plagued by malfunctions.
Variation in sugar content
In the third week of the campaign (from September 29 to October 5), the national average sugar content is 15.7%. Almost the same as the previous week. This is slightly higher than last year, but below the multi-year average. In the northern part of our country (Texel, Groningen), sugar contents of 16% or more are being reached. In the south (Achterhoek, Limburg), it is not even 15%, which is all due to the exceptionally late sowing date.
The tare content slightly increased to an average of 8.9%. This is quite low and not surprising, given the good harvesting conditions. Even on heavy clay soil in, for example, Groningen, the percentage does not exceed 8%. The extractability index, at 90.2, is almost the same as in the previous weeks.
Cover crop
Cosun is urging growers to sow a cover crop this month after the beet harvest, where possible. Due to the extreme growing season, mineralization can still occur even after the beets have been harvested. By sowing a catch crop, this nitrogen can be utilized, preventing leaching into groundwater. For sandy and loamy soil, the deadline for sowing a catch crop was extended until October 21st. Those who sow later will face a nitrogen penalty in the following growing season. If you sow a cover crop, such as winter wheat, before November 1, the penalty of up to 20 kilograms of nitrogen per hectare will also not apply.
The research institute IRS is encountering leaf diseases such as cercospora and stemphylium in all regions. The institute advises against further spraying on fields. Research has shown that spraying is no longer cost-effective. Moreover, lower temperatures inhibit the development of cercospora in particular.
IRS also reports that a lot of aphanomyces (root rot) is being observed on many light soils. This spring, this fungus already caused the loss of seedlings. Now it is causing deformation and rotting roots, which is caused by a combination of temperature and moisture. This results in a slight decrease in sugar content and yield. If a batch has more than 10% root rot, it will be rejected by the factory.
Increased revenue, decreased profit for Südzucker
In addition to disappointing yields, processors are also facing disappointing financial results. In the first half of the financial year (March to August), Südzucker reported revenue of €5.09 billion. This is €100,000 more than in the same period last year, but net profit plummeted from €409 million to €161 million. A decrease of over 60%.
The sugar division of the world's largest producer performed better in this period, with revenue of €2.13 billion compared to €1.95 billion last year. More sugar was sold, while prices were lower. The company is facing significant challenges from cheap sugar from Ukraine in the European market. The operational result of the sugar division dropped from €380 million to €72 million. An 81% decrease. In addition to lower selling prices, production costs also rose during the previous season's campaign. Interestingly, the company remains positive about the current harvest. Excessive rainfall in Austria, Poland, Romania, and the Czech Republic has caused damage, but the exact extent of it is still unknown.
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