Nordzucker Post 6/2026 - 13 October 2026
Shaping change, securing the future
Dear readers,
There is movement in the markets: sugar prices have risen significantly in recent weeks. A positive snapshot. Nothing more, but nothing less either. Market conditions remain challenging, both for beet growers and for the industry. Heatwaves and drought, particularly in western and southern Europe, are dampening expectations for the current beet harvest. In many of our growing regions, the situation looks much better; as things stand today, we expect a slightly above-average harvest. The campaign is currently running smoothly. We are well positioned to meet our customers’ supply needs.
The outlook for the European sugar market is complex: we continue to see structural overcapacity. The spread of the cicada Pentastiridius leporinus and the associated disease risks have the potential to reduce yields. Furthermore, the controversial introduction and possible structure of a sugar tax are causing uncertainty amongst the industry and consumers. At the same time, we are currently seeing the first positive market signals as well as a slight recovery in Europe. However, the current price rises will only be reflected in the results for the 2027/2028 financial year. For the current financial year, we expect another loss. Our Fields for Growth strategy is of great importance in this situation. An efficient production network, logistics tailored to our customers’ needs and close cooperation with our growers are crucial to regaining profitability through our own efforts.
In addition to the restructuring measures at our plants in Slovakia and Finland, we will cease sugar production at our Nakskov site in Denmark following the current campaign. This decision was not an easy one for us to make, but it was necessary. The aim of this measure is to remove surplus production capacity from our network and to utilise the remaining eleven plants in Europe to their full potential. In Denmark, we will in future consolidate Danish sugar production in Nykøbing. Nakskov will continue to operate as a service centre for the packaging of sugar.
High-yield beet cultivation and efficient sugar production are a joint endeavour. Our business model is successful if beet cultivation and sugar production remain competitive. The revised beet price model for Germany was therefore an important step. In our other European growing regions, too, we are aligning our pricing models more closely with the company’s profitability. We are moving in the right direction. We are making progress – with a clear focus on cooperation, competitiveness and profitability.
Yours sincerely,
Lars Gorissen, CEO
