Nordzucker Reports Record Harvest with Sweet and Clean Beet

Across the Group, Nordzucker recorded above average yields of 59 tonnes beet per hectare (previous year 56.6) with a sugar content of 17.9 per cent (previous year 16.8). Southern Niedersachsen in particular boasted superb yields of 80 tonnes beet per hectare.

20/01/09 After 121 days, the 2008 sugar beet campaign ended on 15 January in Nordzucker AG’s German factories, and produced record results. The international locations in Poland, Slovakia and Serbia also produced good, although in same cases also mixed outcomes.

Across the Group, Nordzucker recorded above average yields of 59 tonnes beet per hectare (previous year 56.6) with a sugar content of 17.9 per cent (previous year 16.8). Southern Niedersachsen in particular boasted superb yields of 80 tonnes beet per hectare. This corresponds to yields of around 15 tonnes sugar per hectare. The yields in northeast Germany failed to match the expectations this year. “The increases in yield after the start of the campaign were enormous. This was attributable to the perfect weather which combined plenty of sunshine with regular light rainfall,” says Agriculture Director Dr. Henrik Einfeld. Even in the spring after late sowing, the beet benefited from very good growing conditions without any stress factors such as excess heat, drought, or too much rain. This all compensated for the shorter growing season.

Nordzucker AG’s average yield of 11.3 tonnes sugar per hectare broke all previous records (previous year 10.6). A total of around ten million tonnes of beet were processed Groupwide. This was turned into approx. 1.6 million tonnes sugar (previous year 1.9). This planned reduction is a consequence of the new Common Market Organisation for sugar, which aims to cut sugar production in Europe by around six million tonnes. This resulted in Nordzucker closing three factories to bring its production into line with the Common Market Organisation for sugar criteria.

“Our campaigns lasted 116 days on average. This very good factory utilisation ratio helps partially compensate for the economic effects of the Common Market Organisation for sugar,” emphasised Dr. Martin Wienkenhöver, Production and Technology Director.

The yields in Slovakia are also at record levels with 61.2 tonnes beet per hectare and a sugar content of 17.7 per cent. The sugar yield in Germany is 11 tonnes per hectare. The results in Serbia were also very satisfactory: 52.3 tonnes beet per hectare and a sugar content of 17.1 per cent. And with a yield of around nine tonnes sugar per hectare, the beet growers were also able to bring in a much better harvest than the previous years. This partially compensated for the decrease in cultivated area. Late sowing in Poland and a rainfall deficit had a negative effect on the beet and sugar yields: 44.5 tonnes beet and a sugar content of 17 per cent.

Nordzucker counteracted the new situation in the market by refining raw cane sugar in its Chelmza factory in Poland. The first raw cane sugar processing phase has now been completed with good results. The next cane sugar processing phase is scheduled for spring.

Construction of a second thick juice tank at the Nordstemmen factory enabled an adequate volume of thick juice (an intermediate product of the sugar production process) to be stored for the thick juice campaign this year. This measure allows customer requirements to be matched even better throughout the year.

“We are very satisfied with the result. In addition to the complete fulfilment of the quota, we are also able to provide our customers with sugar of the highest quality, as well as making available adequate quantities of thick juice for the bioethanol plant operated by fuel 21 GmbH & Co KG,” underlines Dr. Wienkenhöver.

Nordzucker AG, Braunschweig, is one of Europe’s leading sugar producers, and also produces feed, fertiliser and renewable energy from biomass. Nordzucker supplies the food processing industry, retailers and end users with a comprehensive range of sugar and the associated services via the European marketing and sales company Eurosugar S.A.S headquartered in Paris. This is part of Nordzucker’s rigorous expansion strategy in the European sugar and energy markets. With sugar production of around 1.9 million tonnes in the 2007/2008 financial year, Nordzucker generated sales of around Euro 1.3 billion. It has approx. 2,900 employees.

Last wekk it emerged that the planned acquisition of Danisco Sugar by Nordzucker is being investigated in depth by the German Federal Cartel Office (Bundeskartellamt), as was to be expected in view of the size and importance of the transaction. All the other antitrust authorities in whose countries the transaction had to be registered – Estonia, Lithuania, Slovakia and Serbia – have already given Nordzucker the "go-ahead" for the planned purchase of Danisco Sugar. The Federal Cartel Office, the German antitrust authority, is examining the intended merger with particular regard to its possible effects on the competitive situation in Germany.

The Federal Cartel Office has notified the parties involved about the status of its investigations. As a result, there are matters that need to be further clarified. The present state of the talks suggests that implementation of the transaction might be tied to certain preconditions.

In view of speculative reports about a possible closure of the Danisco Sugar production facility in Anklam following successful closing, Nordzucker wishes to make it clear that no such plans have been made at Nordzucker and that it has no intention of closing the plant.