25 Aug - In marketing year 2008/2009, sugar beet sown area decreased by 38 percent. The profitability of sugar beets steeply declined in 2007 and went from returning an 11% profit, to returning a loss of 10% due to overproduction in marketing year 2006/2007 and beet sugar price decreases.
Policy
After WTO accession, the annual calendar year import quota for cane sugar was capped at 260,000 tons. This amount was approved on March 7, 2007 with the passage of Decree # 404. The Ministry of Economy suggests increasing the sugar import quota to 263,900 tons in 2009 and 267,800 tons in 2010. This proposition is published on Ministry of Economy website.
The Ministry of Agriculture increased the subsidy for sugar beets because sown area was low last and this year. According to the Decree #584, issued on June 25 by the Government the sugar beet subsidy has increased from $117 per ha up to $160 per ton. The average yield is expected to be 24 tons per hectare.
Production
Sugar Beets
Sugar beet sown area decreased from 635,000 hectares in 2007/2008 to 390,000 hectares this year. The main reason for this sharp decrease is negative profitability of sugar beets production. The decrease in spring 2008 sown areas will result in 9 million tons of sugar beet production with the average yield of 24 tons per hectare compared to 17 million tons last year.