31 January 2025

Changed market situation for plant-based proteins requires postponement of start of construction of pea protein factory

“As part of the Nordzucker growth strategy, we decided to enter the plant-based proteins market in 2023. We are monitoring developments in this market very closely and will adjust our investment decision to reflect current developments in the respective market if necessary. The current and foreseeable developments for plant-based proteins have led us to the decision to postpone the start of construction of the protein factory. At the same time, we continue to see potential for Nordzucker in this market,” says Lars Gorissen, Chief Executive Officer of Nordzucker AG.

The market for plant-based proteins is currently growing more slowly than expected. In addition, there are more imports coming into Europe – particularly from China due to US tariffs on Chinese goods – and new production capacities are emerging. This is leading to significant overcapacity and very low prices in Europe.

Alexander Godow, Chief Operation Officer, explains: “We have chosen this point in time for the decision because we have not yet started factory construction and can now adapt the concept to changing market conditions. We will, of course, fulfil the cultivation contracts for the yellow pea that were concluded for 2025 and purchase the peas, which can be stored well, at the agreed conditions. It was planned to store peas anyway. We would like to thank all growers for their willingness to cultivate peas.”