Interview with Troels Frandsen, president of Danish planters
Troels Frandsen explains how planters have negotiated the price of their pulps who will supply a biogas factory. Danish beets can also index their beet prices on the term markets. A fine example of contractualization.
You have just negotiated with Nordic Sugar the use of the pulp for biogas. How did you do it? Are you satisfied with the result?
Negotiation was difficult because it included many elements, such as the energy value of the pulp in a biogas factory, the price of the pulp, the price of certificates, etc. In the end, we have managed to conclude an agreement that can be used in practice. We are satisfied with the result.
How is the price of the pulp set?
It is linked to the price of the natural gas market during the campaign. If gas exceeds a certain price level (40 €/MWhr), producers will receive an additional payment which will add up at the base price of € 3/t. Additional payment will be distributed over the entire pulp delivered, including the pulp used for cattle supply.
On what date will the factories replace part of the natural gas with biogas?
Nordic Sugar has not yet set a precise date, but it will be in a few years.
What was the price of the beet in 2023? And the 2024 perspectives?
The price of the beet in 2023 and that of 2024 was generally the same, with a total price of around 39 €/t of beet, all inclusive. Certain contracts provide a variable price with possible additional payment according to the financial results of the Sucrière Nordic Sugar company. This led, in 2023, to a payment of around € 50/t for certain types of contracts.
At home the planters can also index their beet prices on the term markets. Is this system widely used? What result did he give?
Until now, it has been used only in small scale and the price depends on the moment when the producer “closes” the price in the contract. The price is linked to the NY#11 rating. In 2024, it was possible to close the price at a good level.
