
It's Beet Season! September Marks the Start of the Sugar Campaign
October 29th 2024
As major French companies launch their beet campaign in mid-September, analyses show that sugar beet prices in 2023 have provided significant margins for growers despite rising production costs. The average price of sugar beets in 2023-2024 reached a historic high of €50.2 per tonne in France, compared to €43.7 per tonne in 2022. However, for 2024-2025, prices are expected to drop to around €40 per tonne due to a decline in the global and European sugar markets.
Strong Margins and Comparisons with Neighboring Countries
Interestingly, neighboring European countries like Germany, Belgium, and the Netherlands saw even higher beet prices in 2023-2024. Last year, the CGB indicated that markets could remunerate beets around €55 per tonne, which initially sparked negative reactions. However, the actual average price in France for 2023 was over €50 per tonne.
European beet producers often received comparable or better remuneration, partly due to downstream diversifications generating dividends (e.g., Cosun and Südzucker groups), which allowed them to benefit from more stable returns.
Market Projections for 2024 and 2025
For the upcoming campaign, markets are less favorable due to anticipated excess in the European sugar market. Nevertheless, the harvest has just begun, and yields will vary across regions. The expected average price for 2024 beets is around €40 per tonne, but this could change based on market developments and industrial management choices.
Looking ahead to 2025, several European sugar groups have announced plans to significantly reduce planting areas due to market declines. Growers and sugar groups are advised to exercise caution regarding planting area decisions for 2025, given the uncertain market outlook.