The sugar prices and sales are under pressure according to Cosun Beet Company. The cooperative anticipates this by lowering the allocation percentage for the sugar beet harvest 2025 to 105%. Additionally, the sugar beet processor expects a 6% lower hectare yield this season due to the difficult, wet spring.
The sugar market has changed significantly in recent months according to the cooperative, and the sugar processor must anticipate this. For this reason, the allocation percentage is set at 105% for the sugar beet harvest 2025. This is 5% lower than the allocation percentage for the 2024 sugar beet harvest, which was set at 110%. Cosun uses member delivery rights (LLBs), where 1 LLB entitles the right to deliver 1 ton of beets (at 17% sugar) at the member price. An allocation percentage of 105% means that a grower can deliver 5% extra beets at the member price. If more than 105% of beets are delivered, a lower price is charged for that volume.
Additionally, Cosun announces a yield forecast for the current harvest of 13 tons of sugar per hectare. This is approximately 6% lower than the five-year average. The crop condition varies greatly nationwide due to the large variation in sowing times and (structural) damage from waterlogging. Despite the slightly increased acreage this season, the total amount of sugar expected to be produced is lower than last year. Furthermore, Cosun expects the beet acreage to decrease slightly again in 2025.
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