Sugar prices in Europe have increased by 61% compared to last year. The reason for this was the suspension of the derogations for seed treated with neonicotinoids by the EU Court of Justice.
Beet farmers could be put out of business if the EU goes ahead with its plans to reduce pesticide use, as yield losses could eat away at farmers' profit margins, reports Food Ingredients First.
Max Schulman, Vice-Chair of the Copa-Cogeca Seed Working Group, commented: “If there are no effective alternatives to crop protection, the supply chains will be e.gusabreak which will ultimately lead to the disappearance of local European products. The consequences are already showing: 10% of French farmers have decided not to grow beetroot this year, mainly because of the lack of neonicotinoids.”
Markus Scheberl, President of the Austrian Sugar Beet Growers' Association, adds that if the active compounds continue to disappear, it will be impossible to grow the crop in many parts of Europe. In his opinion, the European Commission must opt for an agricultural policy that supports the sustainable production of domestic food.
Urgent political action
The European Sugar Consumers' Confederation (Cius) predicts sugar supply will bottom out in September, leading to factory closures and job losses.
Cius calls on the EU to suspend tariffs on white sugar imports immediately. "Our high value-added sugar products are losing exports because they cannot compete with suppliers on the world market," emphasizes the association.
The forecast of ending stocks for the current agricultural year 2022/2023 shows that consumers will receive 552 tons Sugar are available, which is less than two weeks of the sugar consumption of the EU population.
The global struggle for sugar
As the EU suffers from a drop in sugar production, it is becoming increasingly dependent on sugar imports, which are becoming increasingly expensive due to drought-related crop failures.
The Food and Agriculture Organization of the United Nations (FAO) reported in April that the sugar prices are at their highest level since October 2016. This is largely due to deteriorating production prospects in India, Thailand and China - three of the top five sugar producers in the world.
India could impose a new cap on sugar exports like last year, as the country's biggest producing region lowered its production forecast to 10,5 million tons and slashed forecasts by more than 2 million tons over the past four months.
In January, the UK government approved the use of neonicotinoids on sugar beet. That hasn't stopped sugar prices from skyrocketing in the country, however, as last June the National Farmers' Union and UK sugar growers agreed a contract for the 2023/2024 marketing year that saw a price increase of 48% over the previous year provides.
At the same time, it is hoped that the Brazilian sugar cane crop, which is gradually arriving on world markets, will lead to some price reductions.
The Food and Agriculture Organization of the United Nations (FAO) comments: “Lower global crude oil prices, which have contributed to greater use of sugarcane for sugar production in Brazil, have e.gusammen, with the Brazilian real weakening against the US dollar, helped limit the monthly rise in world sugar prices.
However, Brazilian Energy Minister Alexandre Silveira said the country was studying the possibility of increasing the mandatory ethanol content in gasoline from the current 27% to 30%, which would reduce the amount of sugar available for export.
If crude oil prices rise, food producers may be tempted to turn their crops into fuel, further exacerbating the current food crisis.
Source: Ukragroconsult (Ukraine)