15 January 2026
Nordzucker: successful 2025/2026 campaign, market under pressure – clear strategy for the future
At the start of the year, Nordzucker can look back on a stable 2025/2026 campaign. While the sugar beet campaign in Finland and Lithuania ended in December, the German sites will complete their campaign in the second half of January, followed by the sugar factories in Sweden, Slovakia, Denmark and Poland. Harvest conditions were good overall throughout the campaign. Beet diseases and the continuing spread of the SBR complex had a limited regional impact but did not have any exceptional effects on beet yields and quality overall.
“The stable processing in our factories, the efficiency of our logistics and the excellent cooperation along the entire value chain are key factors in enabling us to complete the campaign safely and efficiently,” emphasises Lars Gorissen, Chief Executive Officer of Nordzucker AG. “Consistent investment in our factories and a special focus on cooperation and process optimisation are paying off and motivate us to continue implementing our strategy consistently under challenging market conditions.”
2025/2026 campaign: above-average yields and stable processing
Once again, significantly above-average beet yields were recorded across the Group. Favourable weather conditions and a sugar content well above the five-year average, which varied greatly from region to region, ranging from below 16 to over 18 per cent, increased the amount of sugar produced.
Until the end of 2025, advantageous weather conditions ensured smooth storage and transport of the beet, while slippery conditions and snow in January posed challenges for beet logistics in Germany at the end of the campaign.
Successful crush in Australia with technological improvements
The crush, harvesting and processing of sugar cane in Australia was also successfully completed in December. Nordzucker subsidiary Mackay Sugar processed a total of 4.8 million tonnes of sugar cane and implemented important technological innovations at its three plant locations in Marian, Racecourse and Farleigh.
Decarbonisation: energy indicators improved and CO₂ emissions significantly reduced
As part of the company-wide GoGreen programme to decarbonise sugar production, energy performance indicators at the factories were improved and CO₂ emissions were further reduced significantly. Contributing factors included efficiency gains in the process steps, the use of biogas from our own beet pulp and the increased use of energy recovery from steam. “The consistent investments in energy efficiency over the last few years are now having a clear impact in practice: we are working in a more stable, efficient and resource-saving manner. We are therefore well on the way to achieving our CO₂ reduction targets for 2030, while at the same time increasing our operational performance,” emphasises Alexander Godow, Chief Operating Officer.
Market environment: global market prices at a low, EU sugar market under pressure
Since May 2025, world market prices for sugar have fallen significantly – to their lowest level since 2021. High harvest yields in Brazil, India and the EU, as well as uncertainties due to tariffs and exchange rate fluctuations, are increasing price pressure in the EU sugar market. In addition, a decline in consumption can be observed, which is reducing sugar sales. “The significantly lower price level combined with large quantities available has been shaping the market for months. Due to these developments, no substantial price recovery is to be expected for the time being,” says Alexander Godow, describing the market situation.
Financial situation and measures: Loss expected, countermeasures taken at an early stage – further steps being implemented
Against the backdrop of these market conditions, Nordzucker expects an operating loss in the high double-digit million range for the current financial year, which is significantly worse than expected. “The extreme market dynamics with two above-average harvests in Europe in a row are having a considerable impact on our business,” explains Alexander Bott, Chief Financial Officer of Nordzucker AG. “We know our market and can deal with its volatility. Accordingly, we launched a package of cost optimisation measures early on at the beginning of 2025 and will not only continue to implement these consistently in 2026, but also expand them.”
The measures already initiated include the intensification of excellence programmes, the adjustment of the investment budget, the reduction of administrative costs and the optimisation of beet price models. Thanks to a high equity ratio, Nordzucker is solidly financed and remains a reliable partner for beet growers and customers even in a challenging environment.
“Against the backdrop of the current market cycle, we are consistently aligning our processes and cost structures with efficiency and resilience. However, a significant price recovery is not expected in the short term; we therefore currently anticipate a loss for 2026/2027 as well. Our goal is to return to profitability in the 2027/2028 financial year on our own – even with low sales prices,” CFO Alexander Bott continued.
Strategic orientation: ensuring stability, enabling opportunities
“We have a clear strategy for regaining the profitability of our business on our own – even if sales prices remain low in the long term,” emphasises Lars Gorissen. “In addition to further internal cost reductions, this also includes reducing beet prices in the current market situation and after several years of very good beet prices. What distinguishes our industry is that all partners along the value chain contribute to ensuring that sugar beet and sugar production remain attractive and offer good long-term economic prospects.”
To ensure stability, the package of measures launched in spring 2025 will be significantly intensified and supplemented by an additional programme with further savings over the next two years. The exact details of this programme are currently being finalised. The planned steps relate in particular to administrative cost adjustments and structural optimisations.
At the same time, decarbonisation and digitalisation remain key priorities of the corporate strategy; growth outside Europe in sugar cane and diversification in the area of alternative proteins are essential elements for medium and long-term development.