European sugar beet growers are heading into the 2026 planting season with a more challenging cost environment, as diesel and gas prices rise in the wake of the Middle East conflict. In the UK, red diesel prices have risen 60% since the outbreak of the conflict. Gas prices are also a concern for processors, with the cost outlook for the 2026/27 campaign depending significantly on whether processors hedged their energy costs forward.
Spring planting is under way in parts of France, where approximately 13% of the beet area had been sown by March 11, an earlier start than last season. In the Val de Loire region, around 60% of beet had been planted by that date. Conditions across northern Europe remain mostly dry and favourable, though there are still risks of frost in the Benelux and northern Germany this week.
In Austria, around 900 of 4,400 contracted beet farmers are reported to not be growing beet this season, which would imply a reduction of approximately 20% of contracted growers.
With world sugar prices rising, in part due to the impact of the Middle East conflict, some growers may be tempted to plant more beet. At the same time, oilseed rape prices have moved above EUR 500/tonne, giving farmers an alternative crop to consider.
On the trade side, a European Commission official made a statement that a suspension of the import parity price (IPP) for sugar would occur within a few weeks. However, sources close to the Commission have indicated this had not been agreed across relevant departments, meaning the actual decision may take significantly longer. The item is not on the agenda for the Expert Group for Agricultural Markets meeting scheduled for March 26.
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