|
 As
the profound reform of the much discussed, and often
controversial Common Agricultural Policy (CAP) in Europe gathers
pace, sugar is the last sector of the CAP to undergo changes.
In its long history in European agriculture,
sugar from beet has been characterised by stability promoted by
a system, which, aside of a few modifications in the last
decade, has been largely unchanged since 1968.
But significant changes are coming, soon.
WTO initiatives, internal market organisation and price
structures changes, imports allowances made to the Least
Developed Countries (LDC) to access European markets where good
returns are key, will all put margin and profitability pressures
on the current actors of the European beet sugar industry. Will
sugar beet continue to supply Europe’s sugar? Certainly, but
perhaps not as we know it today. Cane sugar and beet sugar will
have to co-exist in Europe as complementary partners, and, lest
we forget…
'Sustainable development is
development that meets the needs of the present,
without compromising the ability of future generations to
meet their needs'
United Nations Commission on Environment and Development
The Bruntland Commission, 1987
Cane and Sugar beet
Whilst volumes of sugar produced from cane in
the world have greatly increased due to a doubling of this
crop’s cultivated areas in the past 40 years, actual yields per
hectare have progressed very little. Higher inputs are required
in cane for pest and disease control, higher water requirements
are needed for the crop to yield, compared with beet. Also to be
considered are the limited yields obtained in the first two
years of planting, as this perennial grass needs several years
to establish maturity. Finally, as a monoculture, cane does not
benefit from the advantages offered by rotational cropping
systems. Into the cost production however one should also
recognise that cane sugar is grown where the cost of land and
labour is very much lower than in the EU.
Conversely, yields of sugar per hectare from
beet in the European Union (EU) and other world growing regions,
have experienced constant growth, particularly so in the EU in
the last 10 years. Beet in the EU now returns higher sugar per
hectare than the world’s average for cane, over a surface area,
which has actually reduced by 20% in the last in the last 20
years! Sugar beet plays an important role in crop rotation
practices, enhancing its own, and the yields and management of
other crops on the farm.
Sugar processing economics also play a
significant role for both crops. Whilst cane sugar producers
have the advantage of bagasse, the by-product from crushed cane,
for energy uses, no such luxury is available to beet sugar
processors, who have had to engineer ‘state of the art’ process
efficiencies to minimise utilities and processing costs, and
recycle as much of the energy and materials inputs. In fact,
very little is wasted: Factory steam generating electricity to
the power grid, high energetic value pulp for animal feed,
factory co-products as soil improvers, medicinal by-products
such as betaine. Not forgetting also, as one of the few
remaining spring grown crops in Europe, beet has a large and
beneficial impact on countryside biodiversity and birdlife.
Where next?
From a productivity perspective matched with
sound environmental advances, beet in the EU looks toward a
logical yet modified future, and the continued progression of
yields is key in this strategy.
The most efficient and cost effective sugar
processors will continue to provide the markets of Europe with a
high quality product. The most productive growers will continue
to grow beet to supply the industry profitably against a
backdrop of profound price changes. The highest yielding and
quality focussed seed varieties will continue to be grown,
protected by environmentally orientated seed treatments, crop
protection systems, enhancement and management tools. |
