'At least 9 European sugar factories closed'

In the foreseeable future, 9 to 15 European sugar factories will close their doors, predicts the Confederation of Belgian Beet Planters (CBB). The closure is due to the crisis in the sugar industry. The sugar price has fallen to its lowest level in more than 10 years.

According to the CBB, there is nothing to indicate that the market will soon recover. In The Beet Planter the situation is outlined, which is characterized by financial losses and the threat of factory closures. Several European sugar groups are going to carry out restructuring this year.

Sudzucker, the number 1 in Europe, announced this year the closure of 2 sugar factories in France, 2 in Germany and 1 in Poland. It aims to reduce sugar production by approximately 700.000 tons. The German Nordzucker, the number 2 in Europe, reports to close a sugar factory in Sweden. The French Cooperative Crystal Union announced the closure of the Bourdon (Puy-de-Dôme) and Toury (Eure-et-Loire) factories from the 2020/2021 campaign and the discontinuation of the packaging unit at the Erstein (Alsace) factory.

In Italy, Eridania Sadam announced that it would temporarily close the sugar factory in San Quirico in 2019 due to supply shortages. Only the 2 CoProB factories will process beets this year. In 2018, 190.000 tons of sugar were produced in Italy. This is 12% less than the amount the country needs, about 1,6 million tons.

Significant financial losses
All major companies in the sugar industry are currently in the red. Cristal Union reports a net loss of €99 million in the 2018/2019 season compared to €49 million in the previous year. Nordzucker closed the financial year with a turnover figure that is 18% lower and an operating loss of €58,1 million. The group also expects a loss for the current financial year.

At Tereos, the largest producer in France and the number 3 in the world, the annual net loss rose to €232,2 million, from €1 million 22 year earlier. Net debt rose to €2,4 billion, from €2,2 billion at the end of March last year. A drastic cost-saving plan is being worked out; factory closures are not yet on the agenda.

Sugar Union
Sugar Union made a loss for the first time in 2018. This is compensated by other Royal Cosun subsidiaries. Südzucker's sugar division recorded a loss of €805 million in the past financial year (€318 million last year). A moderate decline in turnover is expected for the 2019/2020 season, but again an operating loss of between €200 million and €300 million.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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