# France’s Cristal Union lures farmers to secure sugar beet supplies
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-06-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: French Sugar Maker Cristal Union Promises High Prices for
Meta Description: Learn how Cristal Union plans to secure supplies, pass rising costs to clients, and ensure farmers benefit from higher prices and compensation.
URL: https://financedigest.com/frances-cristal-union-lures-farmers-to-secure-sugar-beet-supplieshtml

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PARIS (Reuters) -French sugar and ethanol maker Cristal Union promised farmers high prices for their 2023 sugar beet harvest in a bid to secure supplies at a time when the crop is less attractive, confident it can pass rising costs and higher prices to clients.

The cooperative group, France’s second-largest sugar producer, posted a net profit of 97 million euros ($102 million) in the 2021/22 financial year ending on Jan. 31, up from 69 million euros a year earlier. [Sales revenue](https://www.financedigest.com/renault-revenues-rise-30-in-q1-on-higher-sales-and-prices.html "Renault revenues rise 30% in Q1 on higher sales and prices") was up 6.4% at 1.8 billion euros, helped by high sugar and ethanol prices.

“The year 2022/23 should also be very good. The first quarter was already excellent and we managed to pass on the [rise in price and costs](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise") to our consumers,” Cristal Union Director General Xavier Astolfi said in an interview following a news conference to discuss its results.

Astolfi provided an objective to pay 40 euros per tonne of sugar beet for the 2023 harvest, up from 29.37 euros in 2021 and 35 euros promised for the 2022 [crop sown earlier this year](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year") that will be harvested in the fall.

Farmers needed to benefit from [higher sugar and ethanol prices](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price") and be compensated for surging costs, including soaring fertilizer prices due to the war in Ukraine.

However, some uncertainty remained, notably on gas [prices and supplies](https://www.financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worries.html "Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries"). Sugar mills are high gas-consuming factories.

After a 10% fall in area sown with sugar beet in the past five years, Cristal Union expects the area to [stabilise as the higher price](https://www.financedigest.com/uk-house-prices-stabilise-after-four-month-fall-halifax-says.html "UK house prices stabilise after four-month fall, Halifax says") offered would prevent farmers from turning to grains, which saw their prices skyrocket, and being discouraged by diseases that ravaged crops in recent years.

Competitor Tereos, which declined to give a [price for the next sugar](https://www.financedigest.com/suedzucker-expects-to-raise-its-sugar-prices-again-next-year.html "Suedzucker expects to raise its sugar prices again next year") beet harvests, anticipates a 10% fall in area by 2024 and cutting some capacity, possibly through the closure of a factory.

(Reporting by Sybille de La Hamaide; Editing by Jan Harvey and Bill Berkrot)


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