Major European sugar producers reported significant financial losses through the first three quarters of their fiscal years, with Süedzucker posting an operating loss of €136 million in its sugar division compared to a €23 million loss in the same period last year.

Nordzucker recorded a loss of €56 million for the first nine months of its fiscal year, down from a profit of €230 million in the preceding year. The company stated it sees no recovery in profitability before the 2027/28 season.

The financial pressure comes despite strong production results across Europe. Poland’s KGS cooperative group reported a record crop with production expected to exceed 1.19 million tonnes, while France enjoyed exceptional yields despite earlier concerns about virus yellows.

Trade activity remained subdued with northwest beet belt prices quoted at €400 per tonne on an ex-works basis. Spanish prices held at €470 per tonne, while North Italy quoted €500-€510 per tonne. Ukrainian sugar entered the Romanian market at around €375 per tonne delivered.

Import parity prices declined primarily due to a stronger euro, which closed the week at 1.1824 against the US dollar. The strengthening currency reduced the competitiveness of imports relative to domestic European production.

In Germany, over half of Bavarian farmers accepted Süedzucker’s offer of deferred premiums to reduce planted beet areas this year. With approximately 20,000 hectares normally planted in the region and average yields of 11 tonnes of sugar per hectare, a 20% reduction could remove around 20,000 tonnes of sugar production.

The Mercosur agreement continues facing political hurdles. The European Parliament voted by a narrow majority to refer the agreement to the European Court of Justice, a process that could take 18 months. The Commission indicated it would move ahead with implementation despite the parliamentary action.

Tereos secured a BB- rating from S&P for a proposed €300 million bond issue maturing in 2032. S&P noted that the company’s debt-to-EBITDA ratio will increase from 3.2 to 6.3 in fiscal 2025, meaning the business remains highly leveraged and requires higher sugar prices to manage key financial ratios.


This newsarticle is part of a more comprehensive analysis on the European sugar market. For the full market analysis, visit: https://app.vespertool.com/market-analysis/2626