Cutting deep into European beet areas for 2026

European sugar beet processors are significantly reducing the acreage of sugar beets for 2026. With this, they hope to restore balance to the sugar market and end the overproduction of granulated sugar. Beet growers in Germany and England can voluntarily implement a one-year cultivation stop, and Südzucker even pays a bonus to those who reduce their acreage. After the termination of the November contract on the English futures market Liffe, the sugar price rose briefly. Meanwhile, it is now experiencing a decline and has reached the lowest price level in four years. One tonne of refined white sugar currently costs €362.84 per tonne. That is 30% less than a year ago. Sugar producers expect that the European sugar market will remain unfavorable next year, resulting in a significant reduction in the acreage of sugar beets. Collective discount To encourage growers to plant fewer sugar beets, many cases are working with discount percentages, although many European factories have not yet communicated a definitive percentage. Arno Huijsmans, director of agricultural affairs at Royal Cosun, also addressed this choice during the webinar on December 8. As a cooperative, we have a different steering mechanism and chose a collective discount. Already in August, we saw the declining sugar prices and high production in the EU. The allocation was then reduced based on data. According to Huijsmans, Südzucker's choice for a bonus system in Germany has to do with the fact that the grower agreements for 2026 were already settled here, and the processor is appealing to the voluntary participation of growers. Südzucker Germany is not the only beet processor that has already made agreements with its growers. The company has already done this in Poland as well, just like competitor Pfeifer & Langen. Therefore, they have not (yet) set a discount percentage. A one-year cultivation stop, without consequences, is also used by some. At Südzucker, this is only possible if you supply a maximum of 200 tonnes of beets. Apart from Südzucker in France, processors there have not yet communicated any discounts. No shrinkage for France According to Franck Sander, chairman of the French beet growers organization CGB, it is mainly up to other European countries to take action, rather than France. He stated this in an interview with the French agricultural press. In 2017 and 2018, after the abolition of the sugar quota, beet acreage peaked in France and Germany, only to decline until 2024. This was not only due to disappointing beet prices but also mainly due to higher grain prices and significant issues with the yield of sugar beets. Between 2017 and 2026, the sugar beet acreage in France decreased by 18%. That is almost 89,000 hectares. In Germany, the decline is only 6.4% (26,500 hectares), and in Poland, the acreage even increased by 12%, totaling 27,950 hectares. According to Sander, this is a direct consequence of the coupled support that Poland still has, which is a thorn in the side of Western European member states. The beet acreage in the Netherlands, Belgium, and England has been relatively stable over the past ten years with a slight declining trend. In the EU, 1.49 million hectares of sugar beets are being cultivated this year, which is a 9% decrease compared to last year. Nevertheless, good yields this season ensure that more sugar is being produced. The sugar organization ISO estimates in its latest forecast a surplus in global sugar production of 1.6 million tonnes. Last season, there was still a shortage of 2.9 million tonnes. Record imports In addition to good domestic production, the EU is also importing a lot of sugar. By October 1, a record amount of 622,000 tonnes had already been imported from third countries for the 2024/25 season, of which 17% came from the UK, 16% from Ukraine, and 14% from Mauritius. Raw sugar can be imported duty-free by European refiners, which is a concern for processor organizations. This sugar usually does not meet European requirements, and among others, WVZ is calling on the European Commission to close this backdoor to the European market. The special customs procedure 'active refinement' has ensured that in the 2024/25 season, 687,000 tonnes of raw sugar and 155,000 tonnes of white sugar have already been imported, 93% of which comes from Brazil. This is significantly more than what is proposed in the Mercosur treaty. Various member states are therefore calling for this arrangement to be terminated immediately. Protection against imports Imported sugar remains a hot issue. The European Commission will discuss the Mercosur trade agreement, which includes sugar, between December 15 and 18. The European trade committee INTA approved a draft law on December 8 to protect the European agricultural sector against unfair trade practices from Mercosur. There were 27 votes in favor, 8 against, and 7 abstentions. If imports from Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) disrupt the European agricultural sector, the Commission may temporarily revoke the relaxed trading conditions. The lack of protection in the trade agreement is precisely what many farmers' organizations are struggling with. This is important not only for the sugar market but also for the meat industry, for example. Sander is resolute about the impending Mercosur agreement: Protection or not, we are against the agreement that will cost Europe 50,000 hectares of beet acreage due to the import of 190,000 tonnes of sugar and 8.2 million hectoliters of bioethanol. Falling prices The harsh reality for beet growers is significantly lower payment prices. In France, the assumption is between €30 and €35 per tonne, depending on the processor, compared to €39.50 last season. Cristal Union has already communicated a preliminary price of €32.53 per tonne. This year, two more sugar producers in the country have ceased operations: Ouvré Fils and Lesaffre, which has been acquired by Cristal Union. In England, British Sugar has reduced the contract for next year by €3.44 to €34.37. A decrease of 9%. In Poland, contract prices for next year range from €28 to €31.50 per tonne, without premiums. Cosun continues to pay an above-average price across Europe. In August, the base price was raised to €37.50 per tonne. It is up to the cooperative result to make this price taste a bit sweeter. Just like with the other cooperative processors, there are concerns about this, as financial results are under pressure. At Cosun, the strong possibility that Aviko will contribute significantly less this year due to the strained potato and fries market plays a major role. Throughout Europe, farmers are struggling with the fact that they have hardly any profitable alternatives. Even at lower prices, beet cultivation remains popular. This is evident from the ordering of beet seeds at Cosun, which is possible starting today (December 9). The portal opened an hour later than usual (10 a.m.), and barely two hours later, most seed was already sold out. It should be noted that certain varieties have reduced availability.