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Beet campaign begins: Nordic Sugar expects “significant drop” in yields in some drought-impacted reg

foodingredientsfirst 2019-09-19
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 Danish sugar processor Nordic Sugar, a member of Germany’s Nordzucker Group, has begun the harvest and processing of sugar beets, referred to as its “beet campaign,” at its Polish plant. Nordzucker expects the overall revenue from the event to be similar to that of the previous year, although due to low precipitation in Poland and Germany, "regional differences are very large". The event will end in January 2020.


Nordic Sugar began the processing of its first sugar beets this year at itsChełmża (Poland) facility on September 12. Beet processing plants in other countries will start producing sugar in the days ahead and by  October 8, all plants in the Group will have begun processing. 


After rapid sowing at the beginning of April, sugar beet crops had good initial growth conditions in almost all regions, notes Nordic Sugar. However, as in the previous year, precipitation was low during the summer period in certain regions during the growing season. Large parts of the growing regions in Germany and Poland were particularly affected by the lack of rain. By contrast, sugar beet cultivation in Denmark, Sweden, Finland and Slovakia were said to have performed well. 


“There was enough rain this year in some regions, but we also expect a significant dro in yields in other regions. For the Group as a whole, we anticipate an average earnings level roughly at the previous years level,” notes Dr. Lars Gorissen, CEO of Nordzucker.


Earlier this year, Nordzucker reported that sugar yield was on average 10 to 15 percent lower than in 2018, due to the droughts. The consistently high sugar-content of beet crops was unable to offset the decline in volume. However, the company noted that the sugar beet crop displayed the ability to adapt to extreme weather conditions.


“Sugar beet cultivation is not only attractive for most of our beet growers. It is also an active contribution to diversity in agricultural crop rotation. In addition, our sugar production, especially in rural areas, contributes directly and indirectly to jobs and added value,” adds Dr. Gorissen.


This year, Nordzucker will be focusing on the processing of organic beets into organic sugar. Towards this target, Nordzucker signed additional contracts with growers in Germany, Denmark, Sweden and Lithuania last year. Organic sugar is produced at the Schladen (Germany), Kedainiai (Lithuania) and Nykøbing (Denmark) plants.


Another focus within production is on improving the energy balance of the plants, notes Axel Aumüller, Chief Production Officer of Nordzucker. Aumüller believes that all the company’s facilities are well equipped for the campaign that will run until January. “Even in economically challenging times, we are on course in terms of energy efficiency and reducing emissions.We have been working to achieve the goal of reducing carbon dioxide emissions from factories and the long-term non-use of fossil fuels. "

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