Hungary began new sugar-refining season

Hungary’s only sugar factory has begun this year’s sugar beet processing season in Kaposvár (southwestern Hungary), as the industry grapples with persistently low sugar prices and challenging growing conditions. Despite the difficult market environment, Magyar Cukor Zrt. has invested in its plant to improve processing efficiency and is approaching the new season with confidence.

Ferenc Csima, production director at Magyar Cukor Zrt., said that sugar producers and traders faced extraordinary challenges as regional overproduction in previous years led to an extremely severe and prolonged decline in sugar prices. This had a significant negative impact on the profitability of sugar production and, through beet prices, on the profitability of sugar beet cultivation as well, he added.

Several investments have been made this year that will increase the efficiency of sugar beet processing. The director mentioned the expansion of the sugar beet washing facility and the slice press station, the retrofitting of the beet slicing machines, the renovation of the beet receiving bunker, and the new process control room.

Farmers cultivated sugar beets on 10,900 hectares this year, an area similar to last year’s. Although the European Union projected a yield of 50 metric tons per hectare in its most recent harvest estimate in August, the company expects a lower yield.

Sugar beet processing typically begins in mid-October and lasts 60-65 days. Half of the harvested sugar beets arrive at the Kaposvár factory by rail and half by road, where 180 permanent and 80 temporary workers carry out the work in a three-shift rotation.