Solid Rebound Expected for Sugarbeet Industry
Sugarbeet growers and cooperatives in the U.S. are expected to have a stronger financial year ahead, according to a new report by CoBank. The report says growers should see improved production and high prices for the 2020-2021 crop. Many growers and processors suffered through significant financial strains due to extreme weather, market uncertainty and severe crop production losses that plagued the 2019-2020 marketing year. The U.S. sugarbeet harvest last fall marked the fifth biggest year-over-year decline on record, dropping 14 percent to 28.6 million short tons. Total acreage planted this spring is expected to increase over last year and drive production higher. USDA is currently predicting the 2020-21 sugarbeet crop harvest to increase 18 percent, at 33.7 million short tons. With demand remaining strong and refined sugar supplies tightening, the price of Wholesale Refined Beet Sugar has surged to 44 cents per pound, up from 35 cents per pound last fall and the highest since 2012. Raw sugar prices, though, have held steady at around 25 to 27 cents per pound for over the past two years.