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Beet factory closures

Last post Fri, Jul 7 2006 13:38 by Brisel. 1 replies.
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  • Fri, Jul 7 2006 13:38

    Beet factory closures

    So British Sugar has announced it is to close Allscott and York factories at the end of the upcoming campaign.

    That's 25% of the UK beet processing capacity gone in one fell swoop.

    What do you think about it?

    Are you an affected grower?

    If you are, how will this impact your business, and what alternatives are you considering?

    With the forecast beet price expected to tumble to below £20 a tonne, perhaps you're considering getting out of beet anyway. Are you?

    Let us know.

    Thanks.

    Julian, FW arable editor 

  • Sat, Jul 8 2006 22:11 In reply to

    • Brisel
    • Not Ranked
      Male
    • Joined on Sun, May 22 2005
    • Dorset

    Re: Beet factory closures

    We farm in S. Lincs & supply Wissington even though we are slightly closer to Newark. Growing 74 acres this year.

    A representative from British Sugar came to the farm earlier in the year to see what our views were on;

    Words to the effect of "what price would we still grow beet at?"

    Would we consider growing more if more quota became available,

    Would we consider joining an area group with a spread of soil types, lifting dates etc.

     

    We grilled him on;

    What would BS be prepared to pay for it (didn't get too far!),

    What BS's committment to beet processing was &

    Ethanol from beet.

     

    We told him that below £20/t we wouldn't even consider it.

    He said that ethanol from beet was uneconomic (but not for C beet). ABF were going to build biofuel plants & had plans for several wheat ethanol plants.

    They wouldn't shut the biggest plants ie Wissington, Bury & Newark. Yet.

     

    So what would we grow instead? Specialist combineable crops on contracts - oats, pulses, industrial break crops etc. Beet at £20 would compare to a break like rape once you took lower following wheat yield into account etc.

    What does it mean? That we make less money out of it. Whether or not we grow it is down to simple supply/demand/price.

    At £22 we might expand a little (+30 acres?) if the opportunity arose, but only to the point that we were growing it 1 year in 3 on the best land.

    Forgive me if I'm teaching grandma to suck eggs, but have you talked to Mark Ireland about it? He will have plenty to say......

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