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Nordzucker Post 04/2022 - 25 October 2022

Lars Gorissen: Campaign well started – secure supply

Dear readers

Uncertain harvest expectations, lack of availability of raw materials and energy as well as unstable political conditions worldwide are currently leading to major price fluctuations on all markets.

We are all experiencing this in the prices of energy, agricultural raw materials, but also many materials and inputs, whether for the campaign or for farming operations. Food producers are stocking up, retailers are making sure that the shelves are not empty, and consumers have started stocking up again long ago. This is reflected in the prices for food and also for sugar, which have already been rising in the EU since the beginning of the Corona pandemic. The yields for almost all agricultural products after this dry summer are feeding this trend.

We have done everything possible to mitigate the risks of energy supply during this campaign. Reliability for our customers, with whom we generally have long-standing and stable relationships, is our top priority.

So is the partnership with our beet growers, who are doing everything they can in this difficult year to harvest the sugar beet to produce the sugar and transport it to our factories. The rainfall since the beginning of the campaign makes us confident about the quantity, even if the forecast remains for a below-average harvest. As promised, we will review beet prices after the campaign. Our contract offer for 2023 was very well received in Germany, so we have offered additional subscription opportunities. In other countries, the contracting phase is still underway.

Our half-year result as of 31 August reflects not only higher costs and revenues, but also the structural savings successes we have achieved in recent years. Moreover, our participation in Australia contributes a particularly gratifying share to the increased revenues.

As if the signals on the markets were not unrest enough, we also have our hands full in the political arena. Securing beet pulp as a raw material for our own energy production and the framework conditions for agricultural production are important focus topics that we are communicating to politicians and the public.

We are also continuing to drive forward the implementation of our sustainability strategy. We take our commitment to reduce CO2 emissions by 50 percent by 2030 very seriously. We have committed to the Science Based Target Initiative, which will allow us to verify measurable metrics to achieve this target in line with the 1.5 degree target of the Paris Climate Agreement.

Together with our beet growers and our customers, we want to make our contribution to reducing climate change and thus further establish Nordzucker as a top partner in the sugar business.

I hope you enjoy reading the Nordzucker Post.

Yours, Lars Gorissen

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