The beet area may drop sharply, and related support needs urgent follow-up
By: Date: 2021-04-17 Categories: industrynews Tags: ,
  Beet is an important sugar crop in my country. Thanks to the large-scale and mechanization of production and planting, its development momentum has been good in recent years. As of the sugar production period of 2020/21, my country’s sugar beet planting area is 3.47 million mu, and the sugar beet output is 1.53 million tons (all of which are high in nearly 7 sugar production periods). However, affected by factors such as declining comparative benefits, farmers’ planting intentions in the sugar-making period of 2021/22 will weaken, and the area may decline sharply, and the risk of domestic sugar supply has risen.
  Competitive crops have obvious comparative advantages. Since 2020, the price of corn has continued to rise, and the planting income has been more than twice that of sugar beet, and beet farmers have a strong willingness to change crops.
  Taking the central part of Inner Mongolia as an example, if the corn price is 2.76 yuan/kg, the farmer’s income is 1794 yuan/mu and the profit is 894 yuan/mu; the beet purchase price is 500 yuan/ton, the farmer’s income is 1750 yuan/mu, the profit 400 yuan/mu.
  In some counties and banners, the income of special agricultural products after the local government’s financial subsidies is also higher than that of sugar beets. For example, the”Chinese Potato Capital” Ulan Qab City Government subsidizes 500 yuan/mu for potato planting. Based on the potato price of 1.3 yuan/kg, the income of farmers is about 4550 yuan/mu, and the profit is 2,000 yuan/mu.
   In contrast, sugar beet production lacks government financial support. It is understood that in the sugar production period of 2021/22, the intended planting area of ​​sugar beet in Inner Mongolia will be reduced by about 30%(individual companies may suspend production due to lack of raw materials), Xinjiang will be reduced by about 20%, and Heilongjiang will be reduced by about 50%.
  Rising land rent pushes up the cost of sugar beet production. The increase in prices of major agricultural products such as corn drives up rents in the main sugar beet producing areas, and farmers’ planting costs have increased rigidly. Enterprises need to increase the purchase price of sugar beets to maintain the planting area, otherwise they will face problems such as insufficient raw materials, which will eventually lead to increased production costs.
   Land rent in Inner Mongolia increased from 400 yuan/mu to 700-800 yuan/mu, some areas even rose to 1,000-1200 yuan/mu, Xinjiang from 500 yuan/mu to 900-1200 yuan/mu, Heilongjiang also increased nearly 1 times. In order to maintain the planting area, the purchase price of sugar beet during the sugar production period in Xinjiang has increased to 500-510 yuan/ton, a year-on-year increase of about 50 yuan/ton. The tax-included cost of beet sugar enterprises in the sugar production period in 2020/21 is 5400-5800 yuan/ton (the average purchase price of beet is 460-560 yuan/ton), and the cumulative average selling price of beet sugar is 5134 yuan/ton. The company has already suffered a loss. The production cost of beet sugar in the sugar production period of 2021/22 will likely rise. If the domestic sugar price remains at the current level or lower, beet sugar companies will continue to lose money.
  In response to the above problems, it is recommended that relevant departments strengthen macro-control to stabilize the domestic sugar market and avoid large-scale losses in sugar companies. At the same time, compared with corn and special agricultural products, financial subsidies are provided to sugar beet growers to stabilize the beet planting area, optimize the crop planting structure, and ensure the supply of domestic sugar. Call on agricultural enterprises, including sugar companies, to continue to use methods such as credit sales of production materials and planting technical support to mobilize farmers’ enthusiasm for planting sugar beets.
   In addition, while implementing the relevant requirements of the central government on”water to drought”, we must also actively explore the development direction and model of modern agricultural water-saving irrigation in water-poor areas, guide the transformation of sugar beet planting methods, and remember to”one size fits all”. Leave a”life way” for beet growers and maintain the good development momentum of beet sugar in my country.