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Royal Cosun announces sugar beet price for 2005

9 February 2006

Royal Cosun, a manufacturer of food ingredients, has set the BMS price for the sugar beet supplied during the 2005 campaign at EUR 51.72 per tonne. The cooperative’s Board announced the price during the Members’ Council meeting in Nijkerk on 8 February.

The price of EUR 51.72 per tonne excluding VAT has been set for BMS beet with average extractability and an average sugar content. The price for the 2004 campaign had been EUR 59.14 per tonne of beet. The average sugar content in 2005 (16.9%) was higher than in the previous year (16.2%).
Good weather conditions, especially in the autumn, produced an excellent sugar yield, averaging 11.2 tonnes per hectare, equal to EUR 3,172 per hectare (2004: EUR 3,324).
 

The 2005 beet price is lower than that for previous years. The main reasons for this are a substantial declassification (13%), which led to a sharp increase in C beet, and a production levy from Brussels. The net effect of these two factors was EUR 6.00 negative per tonne of beet.
 

For the first time, the beet harvest (3,791,000 tonnes in 2005) was processed at two sugar factories, in Groningen and Dinteloord. The factory in Puttershoek was closed down after the previous campaign. The 2005 campaign lasted 109 days and could be completed before the end of the year (28 December).
 

The price of C beet with an average sugar content and average extractability increased in line with higher world market prices to EUR 16.85 (2004: EUR 5.23). The figures below compare beet and sugar production in 2005 and 2004 (between brackets):
 

Total beet production:
3.791.000 
(4.085.000) tonnes
Total sugar production:
599.000
(648.000) tonnes
of which C sugar 
130.000  
(109.000) tonnes


Cosun will publish its figures on the 2005 financial year on 28 March.