Low Prices To Eat Into EU Sugar Beet Area As Planting Starts

www.oann.com | 3/20/2019 | Staff
Alenaaa (Posted by) Level 3
PARIS (Reuters) – Farmers in western Europe have begun sugar beet planting, with first indications pointing to a drop in area for the next harvest after a price slump fueled by the end of European Union production quotas.

The market downturn has prompted Europe’s biggest sugar refiner Suedzucker to announce the closure of several factories by 2020, which could lead farmers in affected zones to make further cuts to beet planting next year.

Year - Decline - EU - Production - Help

This year’s expected decline in planting should curb EU production and help to turn a global sugar surplus that has been pressuring prices into a net deficit, analysts say.

“The depressed markets after the end of the quotas has forced farmers to adapt,” said Timothe Masson, economist at the French sugar beet growers group CGB, pegging a fall in plantings at EU level at about 5 percent.

Average - Yield - EU - Sugar - Production

Assuming an average sugar yield, EU sugar production in 2019/20 would fall to about 18 million tonnes, Masson said.

That would be down 3 million tonnes from output in 2017/18, the first season after the end of quotas, and stable versus the current 2018/19 season, when harvests were hit by drought.

EU - Sugar - Output

EU sugar output could be reduced by a further 700,000...
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