Türkiye anticipates a boost in sugar beet production for the marketing year 2024/25, according to recent agricultural reports. Farmers are expected to expand their sugar beet cultivation area, aiming to capitalize on potentially higher returns compared to other crops like sunflowers and corn.
With this expansion, sugar production is forecasted to reach approximately 3.2 million metric tons (MMT) in the upcoming marketing year. While the government has yet to announce the beet sugar production quota for 2024/25, it is anticipated to be similar to the previous year’s quota of around 3.0 MMT. Any surplus production exceeding the quota will either be exported or utilized in food and beverage products for export.
Production Outlook
Sugar beet cultivation area for the marketing year 2024/25 is expected to see a slight increase to 330,000 hectares. This expansion is attributed to farmers in regions like Thrace and Central Anatolia shifting from sunflowers and corn to sugar beets, driven by the prospect of higher profitability.
Sugar beet production is projected to marginally rise to 22.5 million metric tons (MMT) in line with the expanded cultivation area. Favorable weather conditions, including sufficient springtime rainfall and irrigation, are assumed for the growing season.
Sugar Prices and Government Support
The government’s annual purchase price for sugar beets, set by the state-run sugar company Turkseker, plays a crucial role in influencing farmers’ decisions. Last September, the purchase price was updated to 1,855 Turkish Lira (TL) or 53,06€ per metric ton, reflecting an increase compared to the previous year. To support sugar beet production amidst rising input costs, the government has also increased its annual support payments for fertilizer and fuel.
Industry Dynamics
Türkiye’s sugar industry has witnessed a transition from government-owned to privatized sugar factories in recent years. Turkseker remains the largest sugar company in the country, contributing significantly to national sugar production.
Consumption Trends
Sugar consumption in Türkiye is expected to slightly increase in 2024/25, driven by strong demand from the food and beverage industry and stable household consumption patterns. Türkiye’s modern food industry accounts for the majority of sugar consumption, with per capita consumption estimated at 35 kilograms annually.
Trade Overview
Sugar imports for the upcoming marketing year are projected to decrease slightly, reflecting expectations of higher domestic production. Conversely, sugar exports are forecasted to remain steady, with Syria and Iraq being the primary destinations for Turkish sugar.
Türkiye’s sugar beet sector is poised for growth in the upcoming marketing year, fueled by expanded cultivation areas and favorable market conditions. Despite challenges such as fluctuating prices and trade dynamics, the industry continues to play a significant role in Türkiye’s agricultural landscape and economy.