Nordzucker: Below-average yields expected

September 13, 2019 at 9:41 AM , Der AUDITOR
The growers are busy harvesting sugar beets. @Nordzucker AG
The growers are busy harvesting sugar beets. @Nordzucker AG
Play report as audio

BRAUNSCHWEIG. With processing beginning in Chełmża the Group has officially launched the new beet campaign this week. Earnings are expected to vary greatly depending on region.

Yields to remain below average

All plants will be processing beets into sugar as of 8 October. The campaign will be concluded in January. Although conditions were initially very good in spring with rapid sowing in April, the lack of rain in summer dampened prospects in some regions. Large areas in Germany and Poland were affected by the lack of precipitation. Contrary to this, the sugar beets developed well in Denmark, Sweden and Finland and Slovakia. Trial erosions indicate that the yields vary greatly throughout the different regions.

CEO Dr Lars Gorissen confirms that “there was enough rain this year in some regions, but we also expect a significant drop in yield in other regions. For the Group as a whole, we anticipate an average earnings level roughly at the previous year’s level”. This message did, however, not go down well with market players in Germany as last year’s yields were 10-15% below average. In addition, the global decline in sugar prices strongly reduced the Group’s earnings and ultimately forced Nordzucker to cut costs.

Nordzucker invests in organic sugar prodcution

In stating that “our sugar production, especially in rural areas, contributes directly and indirectly to jobs and added value,” Gorissen further stresses that the sugar producer is committed to finding was to secure the of the Group and its partners in a twofold manner; by investing in ecological sustainability and by starting organic sugar production. The Chief Production Officer, Axel Aumüller thereby acknowledges that the current market situation is difficult, but that Nordzucker is nevertheless investing in the production plants. He states that “even in economically challenging times, we are on course in terms of energy efficiency and reducing emissions”.

The Group also highlights that organic sugar will be produced this year. Farmers in Germany, Denmark and Sweden and Lithuania signed contracts with Nordzucker last year for growing organic sugar beets. Organic sugar is being produced on Schladen, Kedainiai and in Nykøbing.

 

Press Release, Nordzucker AG

 

View related articles

Go to the News Overview
Company News
Feb 15, 2024
LUXEMBOURG. By issuing approval on 14 February chocolate and confectionary giant Ferrero wrapped up the 2022/2023 financial year particularly sweet. Turnover increased by 21% and the global workforce rose by 14%. While new Nutella products were rolled out in the USA, consumers in Europe had a taste for Ferrero-themed ice cream.
Company News
Jan 12, 2024
Dear readers, due to some cases of illness, the publication date of the first AUDITOR issue 2024 has been postponed to 19/01/2024. We apologise for any inconvenience caused.
Sugar
Jul 5, 2023
BRASÍLIA/BRUSSELS. Grounds are slippery in Brazil’s sugar market as local traders do not only need to keep a close eye on quotations in New York and London but are also confronted with manipulation and fraud. The EU may not be Brazil’s top export destination, but raw cane sugar imports have soared despite prices being high.
Company News
Aug 26, 2022
CHICAGO. As Reuters reports the U.S. Department of Agriculture (USDA) had to retract faulty weekly commodities export data on Thursday morning that generated a high degree of uncertainty in the futures market and forced some analysts to have to issue embarrassing apologies to their clients.