• French beet planting has ended; rea is a little lower than we had expected, at 454k ha. 
  • We expect sugar production to be similar to last year’s 5.1m tonnes, as yields should be better if weather is normal. 
  • However, the ban on neonicotinoid insecticide could have an adverse impact on yields this year. 

== 

  • 454k ha French beets have been planted this year, down 6.3% year-on-year.  
  • We had been expecting a 5% decline in beet area this year owing to low beet prices being offered to farmers due to low sugar prices in Europe and the world market. 
  • However, we expect French sugar production to be similar to last year’s 5.1m tonnes, because last year’s yields were affected by hot dry weather. 
  • This season is the first where neonicotinoids will be banned; this increases the risk that yields will underperform this season even if the weather is normal. 
  • It’s also worth monitoring the weather for the coming weeks; cold or dry weather could slow germination, which could also lead to lower yields. 

French Beet Area 

  • Last year France produced 28% of the total EU sugar and was the biggest single producer. 
  • Other EU countries are still in the process of planting but the latest indications point to a reduction in acreage of 5-10% across the major sugar producing countries. 
  • This supports our view that stocks in the EU will continue to remain tight through the 19/20 season. 

 

Ben Seed

Ben joined CZ’s analysis team in 2016 on a year long internship before returning to the University of Bath to complete an Economics Degree. Since re-joining in August 2018, Ben has led the data insights team in expanding the range and quality of data available internally and to clients through CZ App. Ben spent 3 months in CZ’s Singapore and Bangkok offices to expand his knowledge of the region and help roll out the latest data processes. He is now also responsible for the Sugar Market View published each week on CZ App.

More from this author