Set up in 1968, the sugar quota system to regulate the sugar industry has been abolished since 1 October 2017. What are the consequences for sugar market players?
The increase of surfaces
The liberalization of sugar quotas has pushed the three French manufacturers to adopt a competitive strategy against European and global competitors. To satisfy the world market and favor French exports, sugar beet surfaces have increased by 20% in France. While historic growers have increased their surface area, the CGB (Confédération Générale Betteravière) noted a thousand new farmers.
Industrial optimization
In parallel with the increase in plantings, the sugar companies have heavily invested to strengthen their industrial tools, allowing them to process more sugar beets over a longer period. The sugar beet campaigns must extend over a period of 125 to 140 days (+ 25% extra).
Price volatility
This new era for beet growers is part of a complicated global context with falling world sugar prices. The planters come out of a guaranteed price system to enter a volatility system.
A change that raises some concern but is also perceived as a source of opportunities (unlimited exports in the global market).
France and its tradition of sugar production holds a strong hand in this globalized market where world sugar consumption is growing (Africa and Middle East).
By-product of the sugar beet, Désialis sells beet pulp of its network of producer-shareholders.