Nordzucker Post 1/2025 - 23 January 2025

First signs point to slight easing in the EU sugar market

High expected EU sugar volumes during the 2024/25 campaign, as well as a general consumer reluctance due to inflation, have recently caused sugar prices to fall significantly and faster than expected.

“We can now cautiously assume that sugar prices in the EU have reached their lowest level. Despite long campaigns and high production volumes, the lower beet acreage expected next year is slowly being reflected in prices,” explains CEO Lars Gorissen. “We have adjusted our beet delivery contracts for the coming year to reflect market conditions and will produce less sugar in 2025. This is a contribution to the gradual normalisation of the market,” continues Lars Gorissen.

Overall, a great deal of sugar is currently being produced in the EU due to good growing conditions and, most recently, very attractive beet prices.

“The excessive sugar volumes of this campaign require a variety of measures, such as increased exports, when world market prices are low. We are also increasing the amount of bioethanol produced and storing larger quantities of sugar for liquid sugar production,” explains COO Alexander Godow.

Price and volume pressure can also be felt in other products such as beet pulp, molasses and bioethanol.

“In the volatile sugar market, there are always alternating phases of high and low prices. As a company, we must be resilient enough to deal with such fluctuations. Our goal is to stabilise our profitability in the long term: for profitable beet growing and secure dividends,” concludes Lars Gorissen.