Nordzucker: Below-average yields expected
September 13, 2019 at 9:41 AM ,
Der AUDITOR
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
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