The EU’s beet crops are finishing strong.
Yields should improve following the recently favourable weather across key regions.
French producers have bounced back from April’s frost-induced crop losses.

A Strong Finish for the EU Beet Crop

Data from the August JRC MARS bulletin (Volume 29, No.8) paints a generally positive picture for EU beet crops, with favourable weather supporting an improvement in yields.

Yields in France, Germany and Poland have increased since our initial forecasts in 2021. Overall, the EU should achieve yields of 75 mt/ha, up 7.5 mt/ha year-on-year and 1.4 mt/ha from the five-year average.

The French crop suffered from frost and wet weather in April, which required some significant replanting. Since then, the weather has been broadly positive for the beet crop. The Polish crop yield has improved from an estimated 57.5 mt/ha in April to 60.9 mt/ha in the August report.

The main downgrades in recent months have been in Eastern and Southern regions of Europe, which have suffered from a rain deficit and above average temperatures. These are typically the smaller producers when compared to France, Poland, and Germany. The supply picture therefore looks positive for sugar and molasses.

The other factor to consider is demand. Demand for beet molasses across the EU is stable, with support provided from the main demand areas (bioethanol, yeast production and animal feed).

1. Bioethanol demand has recovered as EU economies reopen following a highly successful vaccination programme.

2. Yeast demand should be supported by increased consumer spending away from home.

3. Feed demand is supported by the higher prices for competing feed ingredients (corn, wheat, barley, soya).

The other factor that will support beet molasses is the price for imported cane molasses. Looking ahead to the next five months, cane molasses prices in Europe will be higher than anticipated due to lower availability of molasses in advance of the Northern Hemisphere cane crop harvests later this year.

The overall story is one of good supply for sugar beet and molasses, combined with a strong demand for the product across Europe.