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Crops interviews British Sugar managing director

Last post Sun, May 25 2008 16:34 by TeslaCoils. 7 replies.
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  • Fri, Mar 28 2008 9:55

    Crops interviews British Sugar managing director

    British Sugar's MD, Gino De Jaegher, interviewed in the latest issue of Crops magazine, foresees a profitable future for the sugar industry, with both larger and smaller growers continuing to grow sugar beet.He urges producers not to repeat the mistakes of the 1970s, when he says many growers gave up growing the crop and have regretted it ever since. He reckons the recent agreement with the NFU to enhance beet prices will maintain the crop's popularity.You can read the full article here  - including comments about this year's beet price and his hopes for avoiding further quota cuts.  We'd like to hear your views on Mr De Jaegher's comments. Is he being overly optimistic? Or has he got it right?
  • Fri, Mar 28 2008 10:53 In reply to

    Re: Crops interviews British Sugar managing director

    Well I hate to tell him but I've had three letters sent to Farmers Weekly in the past week which says unless the price moves significantly they won't be growing beet again.

    Latest headlines from Farmers Weekly Interactive
  • Fri, Mar 28 2008 10:55 In reply to

    Re: Crops interviews British Sugar managing director

    Forgot to say - one of the letters is in the issue of FW out today (28 March) from a grower who reckons he'd need £40/t to keep growing. A doubling of the price seems a little optimistic but you get the idea...

    Latest headlines from Farmers Weekly Interactive
  • Fri, Mar 28 2008 19:28 In reply to

    Re: Crops interviews British Sugar managing director

    There wont be any quota for 2010/11 campaign. Got that from the horses mouth at OFC. As far as I see, BS has a load of factories that they need to fill with beet. They know how much they need and they have the stats to know which growers can deliver. They will make some calls to those closest to the factories who are probably keen to cart it in themselves, and then move further out until they are full. There are plenty of light land growers who will grow at say £25 a ton. If they have to pay a few growers £40 a ton to get those last loads to keep the factory full, then they will, but it will not be that price for all.

    After Christmas, you could ring Newark up and they would give you tonnage. Quota is worthless, so there is no incentive to keep growing just to protect it. Would be interested to know if the chap who 'needs' £40 a ton is planning to drill this year at £21. I guess he probably will, and is just having a little bark. BS knows that people will whine at the price but keep growing.

    Sadly, there another good break crop option is going down the pan on heavier land.

  • Sat, May 24 2008 19:49 In reply to

    Re: Crops interviews British Sugar managing director

    Hi all.I was just shareing some figures.

    Offered contract for marrowfat peas £300/ton.Hows it compair with S-Beet.

    2ton= £600+£15=£615+benifit to wheat .5ton wheat 1 bag N less cults=£100 acre.SO £715

    It costs about £150 acre more to grow and harvest beet,so thats £865 last years costs.Add £30 acre extre fuel for harvest transport,(todays prices)    Adds up to £895 acre divide by 30 ton acre = £29.83/TON to match the PEAS.  

    Thoughts please.   JOHN.    

     

  • Sat, May 24 2008 21:00 In reply to

    Re: Crops interviews British Sugar managing director

    Beet costs £500 an acre to grow (including a reasonable rent). Beet for 2009 after delivery is £25 a ton at todays exchange rate. So 20t/ac is your break even excluding SFP. In my opinion, you therefore need 28t/ac to make it as profitable as growing rape. There are obvious pluses to beet ie no weeds left, and quick cashflow. Downers are chance of a messy harvest and therefore a terrible wheat crop after.

    You will have a much better wheat entry with peas. Is the contract with Frontier for Kabuki? If so, then dont budget for 2t/ac. IMHO unless you are a risk taker, very experienced, or on some kind land then avoid marrowfats. The chances of not having a harvest vastly exceed beet. Neighbours struggled to fill a 14t trailer from 30ac. Oh, I havent seen the contract, but look carefully at it. I have never seen one that doesnt royally shaft you for waste, stain etc which will really eat away at the price. If you are on nice pea land, you probably ought be growing beet in the rotation too.

    Look at the whole farm rotation and profitability, and grow what you know you can do. Dont jump into marrowfats thinking they will be anything but a nightmare to harvest. BS may be a monopoly, but there are only 3 pea buyers, and you can bet your bottom dollar that they are all best mates waiting to consign your peas to the "feed" pile, whatever they are like.

  • Sun, May 25 2008 16:07 In reply to

    Re: Crops interviews British Sugar managing director

    We are on fen silt ie no stones,they like marrowfats grown here.Yeilds here 1.5 to 2.5 ton/acre.Last year 1.25 to 1.95 ton/acre.Yeilds are more volitile than beet.But 2 ton would be a fair average.In the mid 1990s it would have been 2.25 ton acre,but reasent years have been more difficult,even with better varieties.

    Thing is we have a sugar factory too,and they are looking for more acres to,but not paying quite enougth,when you take into account,increased costs,and poorer wheat crop following.

    I beleave in keeping a ballanced rotation,and will hopefully carry on with beet.But £300 for peas or £350 for rape is forceing some hesitation,with beet contracts sitting on the desk.    JOHN.

  • Sun, May 25 2008 16:34 In reply to

    Re: Crops interviews British Sugar managing director

    I suppose you are on the sort of land that can have a nice rotation without beet. For us, options are more limited without putting grass in the rotation.

    You could always follow the beet with the peas! 

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