Two of Europe’s largest sugar producers, Tereos and Südzucker, have reported major financial setbacks, laying bare the pressure that persistently low sugar prices are placing on the sector.

Tereos posted an operating loss of €598 million for the first nine months of its 2025/26 financial year, a sharp reversal from the €218 million profit recorded in the same period last year. Goodwill and impairment charges, mainly in its core French sugar division, totalled €499 million.

Südzucker, meanwhile, announced it would not pay a dividend for the current financial year, having paid €0.20 per share in 2024/25. The company also warned shareholders of an impending impairment charge on fixed assets of between €450 and €550 million, attributing this directly to the weakness of the sugar market.

Cooperatives dominate, but diversification remains limited

The financial strain at both companies brings the ownership structure of the European sugar industry into sharp focus. Around 80% of sugar assets in the EU are held by cooperatives, a significant shift from thirty years ago, when investor-owned companies held a more equal share of the sector.

When quotas were still in place, several private-sector players used the strong cashflows generated by sugar to diversify into other industries. CSM, for example, moved into bioplastics and functional foods, eventually rebranding as Corbion, after selling its sugar operations to Cosun. Danisco sold its sugar segment to Nordzucker and its food ingredients business to DuPont.

Cooperatives, by contrast, largely chose to reinvest into the same or adjacent business areas, expanding their footprint in sugar rather than branching out. When quotas were abolished, most cooperatives did not pivot, and the industry has faced headwinds since.

Field conditions add further uncertainty

Looking ahead to the upcoming drilling season, set to begin in approximately one month, a German producer has estimated that the overall reduction in planted area will be around 5%, somewhat below what some peers have been forecasting.

Weather conditions will be a key factor in the weeks ahead. Large parts of France have experienced record flooding, and while rainfall levels in the beet belt are reportedly below the long-term average, they are closely matching last year’s numbers, which produced historically high yields. A mild winter has also raised concerns, as colder temperatures help suppress dormant pests such as aphid larvae.

Market prices hold steady

At the trade level, the market remains broadly stable at around €400/mt ex works bulk basis. There were reports of one producer attempting to raise prices by €50/mt in Poland, citing undervaluation, but this was widely dismissed given the current high stock levels.

Cosun published its preliminary results for 2025, reporting an EBITDA of €269 million. After reinvestment, a beet bonus to members, and restructuring costs, the final beet price for members came in at €40/mt, down from €47.25/mt in 2024.

The IPR suspension remains unresolved, leaving the door open for imports into the EU, supported by a weak world market and a strong euro against the dollar.

This article is part of a more comprehensive market analysis. For the full analysis, visit: https://app.vespertool.com/market-analysis/2743