Analysis: EU's bid to save bees stings sugar beet farmers
25/09/2023 06:00
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Beet growers in EU switching crops despite record sugar
prices
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Switch comes as EU court doubles down on bee-toxic
pesticide ban
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Ban pits EU green rules against bid to stem food inflation
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Top grower France sees crop area drop to 14-year low
By Maytaal Angel and Gus Trompiz
LONDON/PARIS, Sept 25 (Reuters) - Europe's sugar beet
growers are turning away from the crop in a move that could
drive soaring prices even higher, as the EU's environmental
rules clash with its bid to stem food inflation and secure
supplies.
Farmers are switching crops after the European Union's top
court ruled in January they can no longer be granted exemptions
to a ban on so-called neonics - insecticides which protect
against diseases like virus yellows in sugar beet but are toxic
to bees and other pollinators vital to food production.
The ruling, which the bloc and environmental groups say is
critical for safeguarding pollinators, some of which are
currently threatened with extinction, has led to a cut in
acreage devoted to sugar beet as crop yields suffer, farmers and
industry experts told Reuters.
"In our region, we lost 15% of the (sugar beet) area (this
year)," said Alexandre Pele, who has a 240 hectare farm in
central France.
"I have struggled to meet volume commitments with the sugar
factory because my yields have declined notably due to the ban
on neonicotinoids," said Pele.
The EU is the third largest sugar producer in the world so a
reduction in output could impact soaring global prices and
frustrate efforts to bring food inflation down.
"We’ve entered a new paradigm in sugar, low prices are a
thing of the past," said an analyst at one of the world's
largest sugar traders. "Global stocks are low, demand is growing
and supply is vulnerable all over the world due to climate
change, due to the difficulty expanding production anywhere, not
least Europe."
EU sugar prices are at their highest ever levels, roughly
double prices seen two years ago, driven partly by an increased
reliance on costly imports as the local sugar sector shrinks.
The European Commission expects sugar imports to have risen
about 60% in the current season. The bloc relies on imported
sugar, mostly subject to duties, for about 15% of its needs.
Neonicotinoids were banned in Europe on non-flowering crops
like sugar beet in 2018, but after a 2020 attack of virus
yellows crushed output in France and Britain, EU member states
granted temporary exemptions.
Since January's court ruling banning exemptions, the area
devoted to growing sugar beet in France, the EU's largest sugar
grower, has hit a 14 year low.
The European Commission said it expects the entire EU beet
area to fall some 3% below a five-year average this year due to
the ruling. The EU beet acreage has already fallen 17% percent
since the 2018 neonics ruling, EU data shows.
The acreage fall led the world's second largest sugar
producer Tereos to close a factory in northern France this year,
losing 123 jobs. Tereos said at the time it was expecting to
receive 10% less beet from farmers.
French grower Pele said he hasn't yet reduced his sugar beet
crop because of the investment he's already made, but the yield
from one of his plots is down by 45% this year.
One in 10 bee and butterfly species, critical for
safeguarding biodiversity, are currently threatened with
extinction, and environmental groups along with the EU pin much
of the blame on neonics.
"The harm of neonics to pollinators is undeniable. They are
the most studied pesticide in human history, and we know very
well how they work," said Noa Simon Delso, scientific director
at Beelife, a Brussels-based non-profit organisation.
Several seed makers, including Germany's KWS Saat KWSG.DE
are working on new sugar beet varieties that would be naturally
resistant to virus yellows, but farmers say they may not be
available until 2027.
By this time, those who have left the sector and sold
costly equipment might be loathe to return.
"Consumers will have to appreciate if more constraints are
put on farming, for good reason or not, the costs of production
will increase until we find other methods to cultivate this
food," said Andrew Blenkiron, who runs a 7,000 acre farm in the
east of England, which thanks to Brexit, can use neonics this
year.
He said he would move away from beet if he can't protect his
crop.
"It's a dilemma - producing food at a cost effective price
while ensuring we have good environmental protection," he added.
A shrinking sugar beet sector could hit other staple crops
because farmers need to plant alternates like sugar beet or
oilseeds on their wheat, barley and corn fields every other year
in order to maintain soil health.
Oilseeds were one of the first crops targeted by the ban in
late 2013, and rapeseed production has since fallen 12%.
"If I lose a crop like sugar beet, that's an agronomy (crop
rotation) issue but also, because weather threats are multiple
these days, having a number of crops allows me to better manage
risk," said Pele. "If I no longer have sugar beet it would be a
real loss."
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Percent declines in EU sugar beet planted area https://tmsnrt.rs/3RvgTnQ
EU sugar imports https://tmsnrt.rs/3ZoZlve
EU sugar prices https://tmsnrt.rs/3rlxY8O
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(Reporting by Maytaal Angel;Editing by Elaine Hardcastle)
((maytaal.angel@thomsonreuters.com; 00442075429105 ;))