Sugar Beet Market 2025: Polish Record Harvest Meets Bitter Price Collapse

The Polish sugar beet market stands at a critical crossroads in June 2025. Despite record-breaking yields and historic sugar production, the sector faces a paradox of oversupply and plunging profitability. Polish growers, traditionally among the top three sugar producers in the EU, have achieved nearly 2.5 million tons of sugar, exceeding domestic demand by a remarkable margin and reinforcing Poland’s status as a major net exporter. However, this success comes at a cost. Driven by both surging global supply and uncontrolled imports—most notably from Ukraine—domestic sugar prices have collapsed, eroding growers’ margins and sending shockwaves through the entire value chain.

With local sugar prices falling nearly 50% year-on-year and the spectre of further contraction in cultivation acreage, stakeholders are sounding the alarm about the future viability of sugar beet farming. Compounding the crisis are high production costs fueled by EU green transition policies, alongside reduced EU subsidies and persistent weather and pest threats. Global market cycles and import policy uncertainties point to continued volatility ahead. Polish producers, processors, and policymakers must now navigate a landscape requiring strategic adaptation, investment in efficiency and sustainability, and renewed advocacy for fair trade protections at the EU level. While the long-term outlook hints at eventual recovery due to cyclical supply adjustment and steady global consumption growth, the coming seasons may test the resilience of all market participants.

📈 Current Price Trends

Product	Type	Location	Purity	Last Price (EUR/kg)	Previous Price (EUR/kg)	Update Date	Market Sentiment
Sugar granulated	Fine 400-850	Kalisz, PL	99.7%	0.52	0.54	2025-06-11	Bearish
Sugar granulated	KAT EU 2	Kalisz, PL	99.7%	0.52	0.52	2025-06-11	Stable
Sugar granulated	white-crystal, Icumsa-45	Warszawa, PL	99.7%	0.54	0.54	2025-06-11	Stable
Sugar granulated	KAT EU 2 Czech	Kalisz, PL	99.7%	0.60	0.62	2025-06-11	Bearish

• Polish sugar granulated prices have fallen to EUR 0.52-0.54/kg FCA, roughly a 4% decline from last month and a 28% drop year-on-year.
• Prices remain under pressure from domestic overproduction and softening EU/global benchmarks, which dipped around 12% globally year-on-year in the same period.

🌍 Supply & Demand Fundamentals

• 2024/2025 Polish sugar production reached a record 2.46 to 2.57 million tons (+9% y/y).
• Area under sugar beet: 274,000 hectares (average yield 67 t/ha; best farms above 100 t/ha).
• Domestic demand is stable at approx. 1.7 million tons; thus, ~31% of sugar is exported, mainly within the EU.
• EU sugar production up 6.8% y/y to 16.6 million tons, further swelling available supply.
• Major exporters: France, Germany, Poland; key export destinations for PL: Germany, Hungary, Italy, Romania, UK, Israel, Sri Lanka.
• Global sugar surplus for 2024/25: estimated at 200,000 tons.
• Poland’s imports (mainly from Ukraine) reached 326,000 tons, far exceeding prior quotas and undermining prices.

📊 Market Drivers & External Influences

• Record Polish and global harvests, with favourable weather in the EU and Brazil, triggered the current price drop.
• Excess Ukrainian imports into the EU following trade liberalisation have disrupted regional markets.
• Depreciation of the BRL and lower oil prices support greater Brazilian sugar output, pressuring world prices.
• Polish producers face severe cost pressures: the EU ETS (Emissions Trading System) alone raises costs by EUR 23/ton.
• Reduced EU CAP subsidies (€300/ha for 2023-2026 vs. €384/ha earlier) limit growers’ financial buffer.
• Financials: KGS saw revenues fall by nearly PLN 1 bn and profits halve; losses expected in 2025.
• Pests (notably beet weevil) and weather variability caused crop replanting and lower efficiency in some regions.
• Price offers for 2025/26 contracts are sharply lower (EUR 28-32.5/t vs. PLN 46.5/t net in 2024/25).

🌦️ Weather Outlook for Key Regions

• The weather through June remains mixed. Moderate rainfall and average temperatures in eastern/central Poland improve soil moisture, supporting late planting recovery but raising fungal risks.
• Western EU regions are forecasted to be slightly drier, but no major drought is expected this week.
• Beet pest pressure remains moderate with emerging aphid risk; emergency authorisation for Sivanto Prime aims to mitigate threats.

📦 Production & Stock Comparison

Country	2024/25 Production (mln t)	Domestic Use (mln t)	Net Exporter	Inventory Note
Poland	2.46-2.57	1.7	Yes	Large surplus, stocks rising
France	~4.5	2.1	Yes	Ample stocks
Germany	~4.1	2.2	Yes	Ample stocks
Ukraine	~1.6	0.9	Yes	Exports to the EU up sharply
Brazil	>35	Domestic + Export	Yes	Record stockpile

• Polish stocks are high and rising; EU surplus constrains price recovery.
• Export opportunities are vital, but competition with Ukrainian and Brazilian output is fierce.

📆 Trading Outlook & Recommendations

• 🟡 Growers: Limit planting expansion for 2025/26 due to poor contract prices. Leverage any remaining hedges and monitor subsidy and emergency support developments.
• 🟡 Traders: Favour short-term sales, as further pressure is possible until EU/Ukrainian flows adjust or harvesting area contracts in 2025.
• 🟢 Processors: Accelerate investments in efficiency and green tech; lobby for policy support and temporary storage schemes.
• 🔴 Exporters: Aggressively seek destinations outside the EU. Monitor logistics and currency volatility.
• 🟢 All: Prepare for a cyclical recovery 2026/27 as reduced area and weaker prices bring supply back in line with demand.

🔮 3-Day Regional Price Forecast (EUR/kg, FCA Poland)

Date	Min Price	Max Price	Likely Trend
2025-06-12	0.51	0.53	Slightly lower; weak demand
2025-06-13	0.51	0.53	Stable
2025-06-14	0.51	0.54	Stable or mild uptick if weather disruptions emerge

Note: Monitor EU and local policy decisions as well as fresh weather threats.