Nordzucker Post 4/2024 - 24 October 2024

Significant price decline in the EU sugar market

High expected sugar volumes in the EU and a general consumer reluctance due to inflation have recently caused sugar prices to fall significantly and faster than expected.

In the volatile sugar market, there are always phases of high and low prices that alternate. “We expected prices to normalise after the high-price phase of recent years. However, the speed and extent of the price decline are faster and greater than expected,” explains Lars Gorissen, CEO.

This year, the growing conditions for sugar beet were excellent, with optimal distribution of moisture and warmth. Beet cultivation was also very attractive for farmers for economic reasons, compared to other crops. The expectation of high sugar volumes, together with consumer restraint, is putting strong pressure on sugar prices.

Nordzucker is currently expecting the campaign to run into February due to the large harvest. “The expected sugar volumes will exceed our sales and storage capacities in the EU. Our measures include, for example, exports to the world market and an increase in the production volume of bioethanol in Klein Wanzleben,” explains Alexander Godow, COO.

“For the coming year, we have adjusted our beet delivery contracts to the market situation and will produce a smaller quantity in 2025. This is a contribution to the gradual normalisation of the market,” adds Lars Gorissen