Canada's Sugar Beet Industry

Sugar beets (Beta Vulgaris) are a biennial root vegetable grown primarily in the temperate climates of North America, Asia, and Europe. This variety of beet was developed in the 18th century as the main alternative to sugarcane in sugar production, as it stores sugar in its white roots. It currently accounts for approximately 40% of global sugar production, as well as being the main source of sugar in Europe.

Sugar beets will grow in almost any type of soil; they thrive in very hot days followed by cool nights. They are very sensitive to moisture levels as over irrigating will reduce the sugar content and under irrigating will reduce yield. Sugar beets are adversely affected by four main insects: the Spinach Carrion beetle, which are mainly a problem along field borders; cutworms; grasshoppers; and sugar beet Nematode which can cause considerable loss of yield due to its microscopic size and ability to move through both soils and machines. They are also affected by flea beetles, wireworms, and sugar beet root aphid. To avoid the effects of these pests, a minimum 4-year rotation is recommended.

The raw beets are harvested, stored in fields, and then transported to the factory where they are stockpiled outdoors. In preparation for processing, the beets are cleaned, sliced, and pulped. Thereafter, they are processed in a fashion similar to cane refining, which is capital intensive. In both cane refining and beet processing, impurities are removed through the use of centrifugal separators. The sugar is then either re-crystallized in vacuum pans or sold as liquid sugar. Refined white crystalline sugar is also screened to make available various granulations to respond to the diverse needs of the industry, for example producers of raw molasses for consumption and firms that chemically alter the sucrose molecule for specialised applications. In Canada, there exists only one sugar beet processing plant, located in Taber, Alberta.

Area of Production

Although sugar beets have been successfully grown in Quebec, Ontario, and Manitoba, the only remaining producer since 1997 was Alberta, reflecting the fact that the only sugar beet processing plant in Canada is located in that province. As a result of being inland from cane refineries, Alberta has enjoyed economic success from sugar beets.

Sugar beet harvested area has followed a downward trend over the last five years. The harvested area reached 17 thousand hectares in 1999 and remained at the level in 2000. In 2001, the area of production declined 30% to 12 thousand hectares, and continued to fall in 2002, down to 10 thousand hectares. Sugar beet area of production had a small rebound in 2003, when it rose back to the 2001 level of 12 thousand hectares.

Yield

Sugar beet yield fluctuated minimally throughout the period of 1999 to 2001, varying between 42.8 and 49.5 tonnes per hectare. In 2002, yield experienced a significant decrease, falling to 34.1 tonnes per hectare from 46.5 tonnes per hectare in 2001. Yield rebounded in 2003, increasing 65% to a decade-high of 56.2 tonnes per hectare. The high yield of sugar beets is attributed to their weight; it doesn't necessarily mean that the volume of production is higher.

Volume of Production

Canadian sugar beet production has not experienced steady growth during the last five years. In 1999, production was 744 thousand tonnes, increasing in 2000 to 821 thousand tonnes. Production fell 34% in 2001, down to 544 thousand tonnes, coupled with an additional 37% decline to 345 thousand tonnes in 2002. This decline was due to water rationing in Alberta during 2001 and 2002, causing a decrease in seeded area. However, the volume of sugar beet production nearly doubled in 2003, growing to 680 thousand tonnes.

Disposition

Sugar beet production in Canada is primarily used for domestic markets. Exports have played a very small role in the Canadian sugar beet industry, exporting sugar beets in only 3 of the last 10 years, with the last exports occurring in 1998. Although sugar beet production in Canada is relatively low, accounting for only 0.29% of total world production in 2003, the trade of refined sugar is present between Canada and the United States. Many changes in U.S. policy regarding refined sugar have restricted trade, and Mexico still enjoys greater access to U.S. refined sugar than Canada.

Additional Information

Refined sugar is available in three primary product categories - white granulated sugar, liquid sugar, and specialty sugars. The most common form of sugar used in households and commercially is granulated sugar. Granulated sugar is produced in several crystal sizes and is usually available in small home packages, commercial service envelopes, and large packages for food manufacturers. In Canada, 92% of domestic white sugar production and co-products are refined from imported raw cane sugar, while the remaining 8% is processed from Canadian-grown sugar beets. Liquid sugar is used primarily by food manufacturers, including soft drink companies. Specialty sugars include such products as icing sugar, brown or yellow sugar, and a host of other sugar products geared towards satisfying consumer demands.

For the latest market information and analysis available from Agriculture and Agri-Food Canada, please consult the following publications:

• Canada: Pulse and Special Crops Outlook
• Bi-weekly Bulletin
• Drought Watch