# Sugar Beet Profitability in Lubelskie Province, Poland
## 4 Discussion
### Implications of Results  
The values of income per hectare in each year were as follows: 2020-PLN 2187.90; 2021-PLN 2386.43; and 2022-PLN 1175.88, showing a significant decrease in the profitability of beet cultivation in 2022. Sugar beet cultivation involves high production costs, which consumed 76.09% of production revenues in 2020, 76.53% in 2021, and 90.87% in 2022. Seed costs, total plant protection product expenses, and total fertilizer expenses showed little change in 2020 and 2021. Unfortunately, 2022 brought a significant increase in these costs, with the largest rise observed in fertilizer costs. Fertilizer costs accounted for a share of direct costs as follows: 16.87% in 2020, 17.76% in 2021, and 26.99% in 2022. Total fertilizer expenses were the most significant component of sugar beet production costs.  
The main factor affecting sugar beet revenues was the purchase price offered by sugar mills, which increased as follows in the marketing years compared to the previous years: by PLN 3.12 per ton in 2020, by PLN 10.24 per ton in 2021, and by PLN 47.48 per ton in 2022.  
During the period covered by the study, similarly to other EU countries, the number of sugar beet growers in Poland has been steadily decreasing year by year. The cultivation area decreased by 12% compared to 2021 [4]. The reduction in the area of sugar beet cultivation was caused by declining profitability. This was also influenced by issues with herbicide protection and droughts, which reduced sugar beet yields. According to the CSO, the sugar beet harvest in 2022 was about 10% less than in 2021 [4]. Both the prices offered by sugar companies and the fact that at least part of the input costs was incurred by growers before the outbreak of the war in Ukraine and the sharp increase in inflation meant that, despite the higher contract prices for beets in 2022, the higher costs of mineral fertilizers, crop protection products, and fuels resulted in much lower income.  
In the analyzed Lublin region, represented by growers supplying sugar beets to the Krasnystaw Sugar Factory, the 2020/2021, 2021/2022, and 2022/2023 buying seasons ended with good results characterizing the seasons and sugar beet production. The factory owner, Krajowa Grupa Spozywccza S.A. (National Food Group), contracted more than 6.4 million tons of sugar beets for the 2022/2023 season, covering an acreage of 104 thousand hectares. Sugar beet contracting agreements were concluded with 12,500 growers. A total of 6,443,840 tons of sugar beets were purchased across all branches of the National Food Group. The average yield obtained by growers was 62.9 t/ha (58.42 t/ha in 2021 and approximately 58 t/ha in 2020). The average buying polarization was 16.7%. The National Food Group produced more than 917,000 tons of sugar at its seven sugar factories [23].  
In the years under consideration, the Krasnystaw Sugar Factory branch purchased 1,030,000 t in 2020; 942,600 t in 2021; and 891,773.5 t in 2022. Due to favorable weather conditions in spring and limited precipitation in autumn, the average polarity increased over subsequent years as follows: 14.53% in 2020, 16.78% in 2021, and 17.62% in 2022. The average yield per hectare was 55.34 dt in 2020, 55.36 dt in 2021, and 64.43 dt in 2022. The average contamination of raw material was 10.43% in 2020, 9.46% in 2021, and 9.80% in 2022. Some growers had a surplus of raw material. The price of surplus was set at PLN 60/t in 2020, PLN 100/t in 2021, and PLN 60/t in 2022.  
The average sugar price in the EU reached a record high of 6586 per ton in October 2022 [6]. Further price increases are expected in the future. The average sugar price in Poland also reached a record, increasing to 647 per ton in December 2022 [47].  
Due to increasing sugar prices and expected lower sugar consumption by an average of 0.6% per year, it can be assumed that there will be less demand for raw materials in the form of sugar beets. According to the economic law of supply and demand, it is likely that the cultivation of sugar beets will become less profitable.