www.SugarProducer.com 15
sugarbeet growers. However, total acreage planted is
expected to increase over last year and drive production
higher. The USDA's Prospective Plantings report forecast
U.S. sugarbeet acreage at 1,138,500 acres for 2020, an
increase of 6,500 acres compared to 2019.
Ultimately, total acreage will likely be revised upward
with farmers expected to make up for lower yields to fulfill
their shares of contracted beet production with processors.
The USDA is currently predicting the 2020-21 sugarbeet
crop harvest to increase 18 percent year-over-year, landing
at 33.7 million short tons, assuming a return to normal
harvest weather this fall.
With demand remaining strong and refined sugar
supplies tightening, the price of wholesale refined beet
sugar has surged to 44 cents per pound as of June 1, 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.
COVID-19 has had minimal impact on total demand
for sugar in the U.S. While total sales to sugar buyers in
the foodservice sector have suffered due to the loss of
customers, retail sales to consumers during the
pandemic has skyrocketed.
"With processors contracting an expected
large crop in today's strong price
environment, cooperatives are expected
to be in a much-improved financial position, enabling them
to reinvest proceeds to make plant upgrades and disburse
more back to co-op members," says Ehmke.
The full report, Sugar Outlook: Sweeter Times Ahead for
Sugarbeet Growers and Processors, is available
at www.cobank.com. n
