Nordzucker Post 1/2026 - 22 January 2026
Strong together: Successful campaign and consistent steps for the future
Dear readers,
It was short and sharp; the onset of winter at the beginning of the year posed challenges for beet logistics in some regions, but did not significantly affect the consistently successful campaign. In Finland and Lithuania, it ended in December, with Germany and Sweden following in the second half of January. By the beginning of February, the last beets of this season will have been processed in Denmark, Poland and Slovakia. The harvest and processing of sugar cane, the crush in Australia, was also successfully completed in December.
Stable processing at our factories, efficient logistics and excellent cooperation between all parties involved contributed to the safe and efficient running of the campaign – I would like to express my sincere thanks to everyone who contributed to this. Another positive development was that plant diseases such as the SBR complex only occurred on a very limited regional basis in our growing areas. Across the Group, yields and sugar content are above average, resulting in higher-than-expected sugar production.
The good harvest coincides with a market that remains under considerable pressure. Since May 2025, world market prices for sugar have fallen to their lowest level since 2021. High harvest yields in Brazil, India, Thailand and the EU, as well as customs duties and exchange rate fluctuations, are exacerbating the pressure on prices. In the EU, two above-average harvests in a row and subdued consumer demand are weighing on sugar prices. The market is characterised by lower price levels and large quantities available – a substantial recovery is not in sight for the time being. As a result, we expect a loss in the high double-digit million range in the current financial year. We currently assume that sales prices will remain low for the time being, so we also expect a negative result for 2026/2027.
We know our markets and are generally well equipped to deal with volatilities. Thanks to a high equity ratio, Nordzucker is solidly financed and remains a reliable partner for growers and customers. We are also pursuing a clear strategy: we are strengthening our core business through structural optimisation and cost adjustments. And we are continuing to focus on growth outside the EU sugar market with sugar cane and in the market for alternative proteins.
Our goal is to return to profitability on our own in the 2027/2028 financial year – even in a scenario of persistently low sales prices. To this end, we will expand the optimisation measures we launched in 2025 and supplement them with an immediate contingency programme for the next two years. Among other things, this programme aims to reduce administrative costs and optimise the plant structure. We are stepping up our efforts to make beet cultivation and sugar production profitable and attractive. However, after several years of very good beet prices, this also includes revising and optimising the beet price models and volume planning. After all, a successful and profitable sugar business is and remains a joint task. Our industry is characterised by the fact 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.
With kind regards
Lars Gorissen, CEO
