| Arable
Dutch expect increased sugar beet production
With the current European production quota coming to an end in September 2017, the question is: what will the Dutch
farmers do? The Netherlands is currently delivering almost 14 tons of sugar output per hectare, which is more than the
output per hectare of, for instance, France, the U.K or Germany.
T
he Agrifac
Academy
organized a
congress about
the future of sugar
beet in the
Netherlands.
The Agrifac Academy is part of
Agrifac Machinery b.v., producing
in addition to self-propelled and
trailed sprayers, also four types of
beet harvesters. During the
congress, major lecturers from
different organisations presented
their forecast and perspective of
the sugar beet in the Netherlands
after 2017, the year after which
sugar companies are no longer
hindered in the marketing of sugar
in the European Union.
Sugar beet cultivation in the
Netherlands comprises
approximately 72,000 hectares this
year. Suiker Unie, the cooperative
that processes all Dutch sugar
beet, aims to raise this area in
2017 to 85,000 - 90,000 hectares.
The director of Suiker Unie, Gert
Sikken, expects a global growth of
the sugar beet market. Cane sugar
will be replaced more and more by
sugar produced out of sugar beets
and more sugar will be exported
out of Europe. The new ambition
of Suiker Unie is that the Dutch will
produce 90 tons per hectare with a
sugar density of 18%.
About 10 years ago, the Dutch
received 43€ per ton . Today this
is 26€.
Although Dutch growers will
have to get used to fluctuating
prices which - at the start of the
quota free era - will drop at first to
a lower level, in the new reality
there is most certainly a place for
sugar beet in Dutch agriculture.
The revenue will still be
significantly higher than what a
farmer receives for producing
cereals.
For the Dutch grower the reality
is even more nuanced as in
calculating the sugar beet price,
the relationship of
grower/processor and the
structure, are of interest.
Particularly if the price of the beet
is linked to the profit of the
cooperative, the pressure on the
beet price will be limited.
Additionally, Eisse Luitjens from
Greenlincs pointed out during
Agrifac’s congress that the
Netherlands are taking the lead in
the low-cost production of sugar
beet. Mr Luitjens presented the
opportunities and role of sugar in
the bio-based industry. Beet pulp
can be turned into carbs for the
chemical industry. The best
opportunities for the use of sugar
or beet pulp are considered to be
bio plastics, bio-ethanol and green
gas.
Will European farmers experience
difference in the sugar beet
market?
Rabobank expects larger
differences within the European
Union. Less imports and more
exports and a total and single
increase of sugar beet production
among all greater sugar beet
producing countries in the
European Union. Once the
restrictions on the export of sugar
are gone, the outlets for sugar
from the EU will increase
considerably. A strong player like
the Netherlands, will for sure profit
from these changes in the longer
term.
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