Nordzucker, a German sugar company, expects to lose money as the market for sugar remains weak

Nordzucker, Germany's second largest sugar refiner, warned that it could suffer an operating loss due to the low EU sugar prices, which are affecting producers across the market.

The unlisted company stated that it expects a loss of operating income in the high double-digit millions for the current year. This is much worse than anticipated. In its previous financial year, it reported an operating profit of 100 million euros ($116 million).

EU sugar prices have fallen to a four-year-low and world sugar prices are at a?five-year-low. On Wednesday, it was reported that European producers were asking farmers to?cut sugar beet plants.

Suedzucker, the largest German sugar producer, said on Tuesday that low sugar prices will?pressure earnings. Tereos in France reported a drop in its?first half profits in November.

The EU sugar market is under pressure due to the high harvest yields in Brazil and India, as well as the uncertainty about tariffs, exchange rates and imports. Meanwhile, the decline in sugar consumption has also reduced overall sales.

Alexander Godow, chief operating officer of the company, said in a statement that "the significantly lower price level combined with the large quantity available have been shaping market for several months." Due to these developments, a substantial price recovery cannot be expected at this time.

The company has expanded its programme of cost cutting and efficiency.

Nordzucker stated that the harvest conditions for 2025/2026 were good this fall and winter.

In December, the sugar beet campaign in Finland and Lithuania concluded. German sugar factories are expected to complete their campaign by the end of January. They will be followed by sugar factories from Sweden, Slovakia and Denmark.

(source: Reuters)