Akzente - Nordzucker AG

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Akzente 

News from Nordzucker | Issue 3 | November 2011 

Sweet outlook 

This is how sugar plays its part 

Campaign starts under good 

conditions. 

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No sugar market regime 

after 2015? 

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20 · 20 · 20: Numerous 

activities in all regions.

CoNtENts 

Good start to the 2011/12 campaign 

at the Nordzucker factories. 

2 

NEWS UPDATE 

▼ ▼ 

▼ 

▼ 

BEET 

4 “Sugar price depends on the world market” – 

Interview with Mats Liljestam 

5 100 days in office: Supervisory Board Chairman 

Hans-Christian Koehler 

6 Early start under good conditions – 2011 campaign 

in the Nordzucker factories 

8 Beet development 2011 

9 Solidly financed – Interview with Dr Michael Noth 

9 Half-year report: Satisfactory performance 

10 Treasury: Hedging currency risks 

11 European Commission does not plan to extend 

the sugar market regime 

12 SERiES: 20 ·20 ·20: Boosting yields on a systematic basis 

14 New member of the Supervisory Board: Matts Eskel Rosendahl 

MARKETS AND CLIENTS 

15 Polagra 2011: Nordzucker showcased itself in top form 

16 Spotlight on the market 

18 What is our sugar used for? – We visit Niederegger 

COMMUNITY 

6 4 

20 Recipe: Bremer Klaben 

15 

Sugar price depends on the world market. Nordzucker presented its products at Polagra-Food 

for the seventh time. 

Imprint 

Published by: Nordzucker AG, Küchenstrasse 9, 38100 Braunschweig. Telephone +49 (0)531 2411 314, Fax +49 (0)531 2411 378, akzente@nordzucker.de | Editorial team (eds.): 

Helmut Bleckwenn, Susanne Dismer-Puls (sdp), Oliver Ditsch, Rolf Hoffmann, Tanja Schneider-Diehl (tsd), Dr Klaus Schumacher (kds), Marion Stumpe (ms), Nina Tatter (nt), Dr Ulf 

Wegener | Layout and typesetting by: Sieler Kommunikation und Gestaltung GmbH, Frankfurt | Printed by: Sigert GmbH Druck- und Medienhaus, Braunschweig | Image credits: 

Fotolia, iStockPhoto, Niederegger, Günter Nimptsch, Nordic Sugar, Nordzucker, Shutterstock

Hartwig Fuchs 

Dear shareholders and friends of Nordzucker, 

The autumn is here, the beet harvest is progressing and the beet campaign is running at full steam. All of our 

13 factories have made a good start to the campaign, and we naturally hope that this situation will continue. 

This is also an opportunity to look back at the year as it nears its end. In the half-year report which we have 

just published, we were able to inform you that the first half of the 2011/12 financial year closed with a very 

satisfactory performance. In the first six months, Nordzucker generated revenues of Euro 900.3 million – which 

although slightly lower than last year, came hand-in-hand with a much better operating result (EBIT). In the 

first half-year, EBIT was at Euro 112.0 million – up from Euro 83.1 million the previous year. This good result 

was attributable to many factors, including the market conditions, our successful efforts as part of our Profitability 

plus efficiency programme and the fact that we released ourselves from a number of underperforming assets last 

year and are now enjoying the fruits of this strategy. 

Nordzucker AG has moved forward in a stronger position after tackling the difficulties of the past. This is 

confirmed by the new syndicated loan contract we closed in June. Nevertheless, we still have some inherited 

burdens which we are dealing with in a committed fashion. But the main goal is the need to strengthen the 

company further to ensure we are well prepared for the challenges we face tomorrow. 

One major task is the question of how to sustainably and fairly enable our beet farmers to share in the sugar 

revenues: the profitability and financial health of the company must be seen as an important factor in this 

equation, at the same time as ensuring that beet farming continues to remain competitive in future. We need 

to tackle this issue in a forward-looking way because our objective is to take these aspects into consideration 

whilst guaranteeing at the same time that the same amount of land is still available for beet cultivation in the 

next five to ten years. 

Another major issue is the consolidation that is taking place on the global sugar market as well as the 

European sugar market. As we saw in October, the concentration process on the European sugar market 

continues unabated: the French company Cristal Union announced its acquisition of its competitor Groupe 

Vermandoise. At the same time, major international players are assessing the European market. The number 

of sugar producers in Europe will decrease continuously in the next few years. There will only be a handful 

of independent companies on the market in a few years’ time – Nordzucker will be one of them. This is just 

as important for our shareholders as for our beet farmers, because we can only continue to determine the 

conditions for our farmers and shareholders ourselves if we have our own voice. We are committed to ensuring 

that this remains the case. 

Together with my colleagues on the Executive Board and all of the Nordzucker employees, I wish you a 

high-yielding autumn, and look forward to welcoming you to one of the winter meetings. 

Yours faithfully, 

Hartwig Fuchs 

“In a few years, there will only be a 

handful of independent companies 

on the market – Nordzucker will be 

one of them.” 

Editorial 

Akzente 03/11 3

NEws UpdatE 

Sugar price 

depends on the 

world market 

After Eastern Europe, the retail sector in Germany has now also raised the price for a 

kilo package of sugar. 

At the beginning of October, ALDI announced 

that it was raising the price for 

a kilo package of sugar from 65 cents to 

85 cents. Another discounter, Lidl, and 

the food retailing conglomerate REWE, 

announced their own price rises just one 

day later. Good reasons for Akzente to 

find out more from Mats Liljestam – 

Nordzucker Chief Marketing Officer. 

4 

Akzente: Mr Liljestam, large retail chains in 

Germany have significantly raised the price 

for a kilogramme of sugar. What is behind 

these price rises? 

Mats Liljestam: One has to be aware of 

many aspects to be able to assess these 

price rises properly. Firstly, there was a big 

price war amongst the food chains in autumn 

2009. Lidl dramatically dropped the 

Retailers implemented a delayed rise in prices. 

» 

Mats liljestam 

Chief Marketing Officer, 

Nordzucker AG 

“It is important that the European 

Commission reaches an early 

decision on measures that need 

to be implemented, such as 

releasing non-quota sugar and 

additional imports.” 

price of flour and sugar at that time – the 

price for sugar for instance went down 

from 85 cents to 72 cents. ALDI joined in 

and slashed the price of a kilogramme of 

flour by 36 per cent, and cut the price for 

sugar by 19 per cent. The food retail chains 

were therefore putting themselves under a 

great deal of pressure. That is one of the 

factors. The other is that the food retailers 

in Germany – unlike those in Poland for 

instance – close long-term supply contracts 

with the suppliers – in other words, with 

us. You will probably remember reading in 

the newspaper in summer that the sugar 

prices in supermarkets in Poland and other 

Eastern European countries (comment from 

the editor: see Akzente 02/11) were on the 

up. That was attributable to the fact that 

the retail chains in Eastern Europe had only 

closed short-term supply agreements; and 

because the world market price for sugar 

was very high, the food retail groups also 

had to pay a very high price for their sugar. 

We were not affected by these factors in 

summer because we closed supply agreements 

lasting 12 months. These now need 

to be renewed and because the world 

market price is still high, the food retail 

chains also have to buy sugar at a higher 

price than they did in 2009 for instance. 

Akzente: But the sugar which we buy here is 

made from sugar beet and also comes from 

here. Why does the global market price have 

an impact? 

Mats Liljestam: It is true that we produce 

sugar here from sugar beet. But we also import 

sugar from the world market. The reforms 

to the sugar market regime made in

2006 stipulated that around 85 per cent of 

the sugar consumed in Europe can be 

produced here. The difference between 

this and overall consumption is to be 

covered by imports which the European 

Commission has pledged to the ACP and 

LDC countries. These quotas are aimed at 

helping the poorest countries in the world. 

However, because of the high world market 

prices, they have not supplied Europe 

with sugar. These countries have exported 

their sugar to other countries and not to 

the EU. 

The higher world market price is primarily 

attributable to poor harvests – 

mainly in Brazil. When we import sugar 

into Europe, we have to accept the conditions 

prevailing on the world market. The 

close link to the world market was always 

one of the main demands of the critics of 

Hans-Christian Koehler 

Chairman of the Supervisory 

Board, Nordzucker AG 

the sugar market regime. Without the sugar 

quota though, the shortage this year 

would have been even more dramatic. In 

the long term, the sugar quota regulations 

are very important for safeguarding the 

supply security of the EU sugar market, 

which has now become very volatile. 

Akzente: A good sugar beet harvest is expected 

this year. But ALDI and other discounters 

have still raised their prices? 

Mats Liljestam: From a global point of 

view, sugar is still in relatively short supply 

– primarily because of poor harvests in 

Brazil and India last year, and the belowaverage 

harvest in the EU in 2010/11. This 

means that sugar is also in relatively short 

supply for our own needs, although this 

may seem paradoxical. This is why we 

moved early at the beginning of the year 

Breaks were yesterday 

100 days in office: Hans-Christian Koehler 

“In the past, there was still time after the 

annual general meetings for the harvest 

and a holiday.” Hans-Christian Koehler 

(56) has been the Nordzucker AG Supervisory 

Board Chairman since the beginning 

of July 2011. “Breaks are now a thing of 

the past; the Group continues to work 

without a pause,” is how he sums up his 

first 100 days in office. 

The farmer from Barum to the north 

of Uelzen is very familiar with the work of the Supervisory Board. He has 

been on the Supervisory Board since Nordzucker AG was established. His 

turbulent entry into the business with beet sweetness happened earlier 

– in 1997 as the full-time director of Zucker Aktiengesellschaft Uelzen- 

Braunschweig. Sugar beet and sugar have kept him busy ever since – on 

top of the 285 hectare market gardening enterprise which he runs as a 

partner in a GbR. 

Facts are not the only factors 

“A great deal has happened in 14 years,” he recalls: mergers, different 

philosophies, personalities and management styles, which he has experienced 

at close hand through his work in various sugar industry committees. 

Detailed knowledge is essential, and something he likes to acquire 

meticulously and whenever new aspects arrive. Another thing he has 

learnt the hard way: “it is not always the facts themselves which guide 

decisions in the end.” 

Nordic Sugar integration in the spotlight 

Committee and sector colleagues confirm the busy farmer’s openness, 

humour and huge reserves of stamina. “I have never shirked hard work,” 

NEws UpdatE 

to lobby the European Commission to implement 

additional measures. Unfortunately, 

the Commission reacted very tentatively so 

that the provision of non-quota sugar for 

the food sector and extra import quotas only 

had an impact on the market relatively late 

in the year, and therefore also helped push 

prices even higher. We think it is therefore 

all the more important for the European 

Commission to reach a decision as early as 

possible on any new measures which may 

be required, such as releasing non-quota 

sugar, and additional import options. One 

thing we know for sure is that the supply 

situation on the global sugar market remains 

relatively strained, and that the sugar price 

continues to be determined by the world 

market. And as I said earlier, the price level on 

the world market depends on many factors 

which we cannot influence in Europe. n 

he says and adds: “Everyone knows exactly where I stand.” Responsibility, 

the complex business and the new role motivate him. “Nordzucker is a 

strong company with potential, and the way things will develop in future 

remains exciting.” He sees the consolidation as almost completed. The 

main focus is now the speedy integration of Nordic Sugar within the Group. 

The consolidation process worldwide in the sugar sector is still proceeding 

apace. “There is a great deal of movement,” he says. Nordzucker has 

all the prerequisites required to grow further, and also to improve the 

necessary access to raw cane sugar without losing sight of the company’s 

own roots. 

After more than 200 winter meetings in all parts of North Germany, 

the green networker from the Uelzener Becken has long been no pure 

“Uelzener” anymore. “We are responsible for many regions, and our 

beet-growing shareholders everywhere have different ideas: those in 

Magdeburg differ from those in Hildesheim, those in Schleswig-Holstein 

differ from those from the Lüneburger Heide and from those in Mecklenburg 

Western Pomerania.” 

New identification of the farmers with Nordzucker 

He considers the most urgent aspects for Nordzucker’s success to be: 

the complete integration of Nordic Sugar; the expansion of its position 

in Europe; access to attractive markets for natural resources; and management 

continuity. He longs for “an end to the tarnishing of a good 

company’s name.” In its place, he wants a new stronger identification of 

the beet farmers and shareholders with their Nordzucker. And he will do 

everything in his power to make this possible. n sdp 


NEws UpdatE 

6 

Early start under 

good conditions 

2011 campaign in the Nordzucker factories 

axel aumüller 

Chief Operating Officer, 


Opalenica sugar factory, Poland: fresh pulped beet 

on the way to the extraction tower. 

I am delighted that all of the Nordzucker 

factories have made very good starts to the 

campaign. This has been significantly assisted 

by the intense and good co-ordination 

of the repair work and the investments. 

The very long campaign in some areas has 

been taken into consideration in various 

measures, such as the very early start to 

the campaign, and putting a processing 

priority this year on the optimisation of 

workflows for good throughput rates. 

Control panel at the Nakskov sugar factory, 

Denmark. 

As for the continuation of the campaign, 

we are all praying for dry weather, so that 

the sugar beet can be stored in the clamps 

with as little adhering soil as possible. Even 

when there is frost, the factories can then 

profit from this because of the better quality 

of the beet after washing, and naturally 

also for the processing itself. If we have no 

very early frost, and if it is not particularly 

harsh, then nothing can stand in the way 

of a good campaign overall. n 

Laboratory at the Nakskov sugar factory, Denmark.

Central Europe 

All factories have a four-shift operations schedule 

“The 2011/12 campaign began very early 

in the region. The first factory to start processing 

was Schladen where production 

began on 7 September. This was followed 

on schedule by Clauen, Nordstemmen and 

Uelzen on 8 September. Wanzleben started 

as planned on 12 September after completing 

the planned repairs and the necessary 

maintenance shut-down of fuel21. All of 

the factories quickly ramped up their pro- 

Northern Europe 

dr Michael Gauß 

Managing Director Central 

Europe Region, and also 

responsible for the German 

sugar factories 

Energy efficiency measures 

“Nordic Sugar’s campaign start ran according 

to plan. There were unfortunately 

Eastern Europe 

Jesper thomassen 

Production Manager Northern 

Europe Region, and also responsible 

for factories in Denmark, 

Sweden, Finland and Lithuania 

Joachim rüger 

Production Manager Eastern 

Europe Region, and also 

responsible for the factories 

in Poland and Slovakia 

“The beet campaign in the Eastern Europe 

Region began under very good conditions. 

The weather was perfect for harvesting 

and beet logistics. Despite the early start 

to the campaign, the sugar beet is of very 

duction to the planned processing 

capacities, supported by good 

harvesting conditions and sugar 

yields at the beginning of the 

campaign lying slightly above the 

five-year average. 

All of the investment measures 

were completed on time and within 

budget thanks to the professional 

co-operation of all those involved. The extraction 

tower relocated from Hungary to 

Clauen was incorporated in the processing 

cycle without any problems. Other important 

investments included setting up steam 

dryer No. 2 in Uelzen, as well as several 

projects to optimise the washing-water and 

wastewater treatment. In Wanzleben, this 

involved installing new high-capacity sieves 

though a few small problems in the 

Danish factories early on, mainly 

due to the heavy rain shortly before 

and at the beginning of the 

campaign. Nevertheless, a high 

processing capacity was quickly 

achieved at all of the factories. We 

carried out a number of investment 

measures prior to the campaign: for 

instance, new energy saving equipment 

18 per cent sugar at the start of the harvest 

good quality. The unexpectedly 

high sugar content of 18 per cent 

in Slovakia is very satisfying. The 

campaign in Eastern Europe will 

also be very long: up to the end 

of the year in Poland and into the 

start of 2012 in Slovakia. 

The refining of raw cane sugar 

was completed in Chełmża shortly before 

the start of the beet campaign. Although 

the time available for carrying out maintenance 

measures in Chełmża was very short, 

this factory also made an excellent campaign 

NEws UpdatE 

to reduce the organic contamination of the 

water and to relieve the wastewater treatment 

system. Automatic extinguishing systems 

were installed in all of the Nordzucker 

Group’s drum dryers to improve the safety 

of the high temperature pulp drying operations. 

And all of the maintenance work 

naturally also took into consideration that 

we will have to tackle an unusually long 

campaign this year of at least 130 days. 

All of the factories are now being run on a 

four-shift schedule, and everyone involved 

is committed to playing their part to ensure 

success – the farmers, harvesting and loading 

teams, beet transporters, clamp care 

operatives, beet managers, and all of the 

employees in the factories.” n 

and measures. Various technical adjustments 

were made during the first days of 

the campaign as part of the energy savings 

plan. One of our investments in Denmark 

has already brought about a considerable 

reduction in water consumption. Heavy 

rainfall though has had an impact on beet 

quality in some of the beet growing areas 

in Denmark.” n 

start. The same applies to Opalenica. 

The high sugar content though could 

be a challenge in Trenčianská Tepla. 

The investments will boost the efficiency 

of all three factories – such as the 

energy consumption. The main focus of 

investment this year was in sugar packaging 

and logistics. The whole packaging 

plant at the former service centre in 

Hatvan was relocated to the factories in 

Chełmża, Opalenica and Trenčianská 

Tepla.” n 


NEws UpdatE 

8 

Sweden 

● Slightly later sowing than normal 

● Normal spring development 

● Average crop densities 

● Good growing conditions in summer 

Above-average sugar yield with lower 

sugar content 

Denmark 

● Sowing 1 week earlier than the long-term 

average 

● Rapid field emergence, high crop density 

● High temperatures in spring, good 

growing conditions 

● Above-average rainfall and cloudy 

weather in summer 

Above-average sugar yield with 

lower sugar content 

Germany 

● Sowing almost 14 days earlier 

than normal 

● Rapid field emergence, high 

crop density 

● Favourable conditions for young 

plant growth and early ground 

coverage 

● Cloudy and rainy summer 

weather 

Sugar yield much higher than 

average 

dr Niels pörksen 

Chief Agricultural Officer, 


Another year 

full of surprises 

Beet development 2011 

One could be excused for thinking that vegetation 

in 2011 was totally tuned to the 

needs of sugar beet. Sowing in most countries 

took place much earlier than average 

this year. And the spring weather with lots 

of sun boosted the growth of the young 

beet plants and led to early crop coverage. 

The rainy summer months enormously 

boosted the bulk growth of the sugar beet, 

but delayed the cereal harvests, and prevented 

punctual rape sowing at many 

Lithuania 

● Slightly later sowing than the 

long-term average 

● Fast field emergence and average 

crop densities 

● Good growing conditions in summer 

Above-average harvest expected 

with lower sugar concentrations 

Poland 

● Sowing 1 week earlier than average 

● Fast field emergence, but varying crop 

densities because of late frost 

● Good beet growth through cloudy and 

rainy summer weather 

Above-average sugar yield with average 

sugar concentrations 

Slovakia 

● Sowing 1 week earlier than average 

● Rapid field emergence, high crop density 

● Good growing conditions thanks to rain and 

high temperatures in summer 

Above-average sugar yield with high sugar concentrations 

Finland 

● Normal sowing time 

● Fast warming in spring 

● Good growing conditions 

in summer 

Above-average harvest expected 

with lower sugar concentrations 

locations. Leaf diseases tended to be 

below average and were controlled with 

targeted measures. 

The first weeks of the campaign verified 

the expectation for above-average 

yields at all locations. Only the sugar content 

varies regionally. 

There will certainly still be a few surprises 

during the campaign. But we are 

currently expecting the 2011 beet year 

to be unusually successful. n

Nordzucker: 

Solidly financed 

The Syndicated loan closed in June cuts the interest load and 

creates more manoeuvrability 

Nordzucker closed a new syndicated loan 

contract in June. The previously existing 

contract which was agreed as part of the 

Nordic Sugar acquisition measures could 

thus be annulled. What are the benefits 

of the new agreement for Nordzucker AG? 

We asked CFO Dr Michael Noth: 

Akzente: Dr Noth, a Euro 1.36 billion loan 

was taken out at the beginning of 2009 for 

the acquisition of Nordic Sugar. The syndicated 

loan contract closed in summer 2011 

replaces the previous financing measure. 

Why was the contract renegotiated? 

Dr Michael Noth: We considerably reduced 

our indebtedness on the strength 

of good earnings and the sale of trade 

investments which no longer fitted in our 

portfolio. This meant that we were able 

to make an unscheduled repayment of almost 

Euro 123 million on our old loan in 

February. 

At the same time, the credit markets 

were very favourable in spring. We therefore 

used our considerably improved creditworthiness 

and the good market situa- 

Satisfactory performance in the first half-year 

Nordzucker profits from good market conditions 

Nordzucker was able to profit from the good 

market conditions, and closed the first half of 

2011/12 with a very satisfactory performance. 

Continuing in-house efficiency measures, as well 

as the optimisation of our trade investment structure 

completed in 2010, are also now bearing 

fruit. Nordzucker generated revenues of Euro 

900.3 million in the first half of the 2011/12 

financial year – only slightly down on the previous 

year’s figure. Smaller volumes of sugar were 

available for marketing because of the belowaverage 

2010/11 campaign. However, the higher 

market prices almost completely compensated 

for this decline in volume. The operating 

result (EBIT) in the first half was Euro 112.0 million 

(previous year: Euro 83.1 million). When 

adjusted for interest and taxes, the six-month 

tion to refinance. The poor development 

of the credit markets since summer has 

shown the benefits of arranging the new 

financing early on. 

Because less financing is required, the 

new loan agreement is much smaller and we 

now save interest in two ways – because 

of the smaller loan and the lower interest 

rates. 

Our colleagues from the Treasury 

department have done a really excellent 

job. Thanks to their clever tender, they 

succeeded in securing much better conditions 

than in the old contract. We not only 

have to pay less interest with the new 

contract, we also have to satisfy fewer 

conditions. This gives us important room 

for manoeuvre in the future. 

Akzente: Why is it important for Nordzucker 

to have “room to manoeuvre”? 

Dr Noth: The sugar industry in Europe 

and around the world is currently experiencing 

a consolidation phase. Another 

merger was just announced at the beginning 

of October: the French company 

profit was Euro 72.6 million (previous year: 

Euro 33.8 million). 

The positive development in earnings also 

gave rise to a considerable increase in the equity 

ratio. Compared with the same balance sheet 

date the previous year, equity rose by Euro 

115.8 million to Euro 854.6 million. The equity 

ratio increased to 50.6 per cent. Net debt (financial 

liabilities minus cash and cash equivalents) 

fell over the same period from Euro 250.1 

million to Euro 148.0 million. 

In the light of the continuing good market 

situation, we are assuming that business will 

continue to develop positively for the whole of 

the 2011/12 financial year. The increases in prices 

achieved in the markets for the new sugar financial 

year suggest that we will exceed the previous 

The whole half-year report is available in our download centre at www.nordzucker.de 

NEws UpdatE 

dr Michael Noth 

Chief Financial Officer, 


Cristal Union acquired its competitor 

Group Vermandoise. Those of us on the 

Nordzucker Executive Board expect this 

trend to continue in the EU over the next 

few years. We have to have cash available 

to invest in Europe and to actively consolidate 

the market. If we want to import sugar 

from ACP and LDC countries in the future, 

we need cash to do it – it is therefore important 

to have stable finances and a loan 

agreement which gives us sufficient room 

to manoeuvre. This is the only way we will 

succeed in maintaining our market position 

and expand it in the future. But don’t misunderstand 

me here: we don’t want to 

launch ourselves into any new adventures 

– our strategy is to invest prudently in our 

core business. Our economic strength 

makes us an attractive company for our 

shareholders and beet suppliers. n 

Nordzucker AG Interim Report- 

Financial Year 2011/2012 

First Quarter 

March 1 – May 31, 2011 

year’s revenues. But we do expect the situation 

to calm down in the medium term in the 

European as well as in the global sugar markets. 

Lower interest payments and savings arising 

from the “Profitability plus” efficiency programme 

will also have a positive impact on earnings. We 

currently expect that the previous year’s earnings 

will be significantly exceeded, and that we will 

generate excellent profits in 2010/11. n 


NEws UpdatE 

Hedging 

currency risks 

Treasury – behind the scenes responsibility 

A package of cane sugar: nothing very unusual on a supermarket 

shelf. The package is quickly put into the supermarket trolley 

and paid for. But how does the sugar actually get here? And 

how and when does one pay for a whole ship full of raw cane 

sugar? 

When Nordzucker orders cane sugar from Brazil for instance, the 

team in the Treasury department at Nordzucker gets to work 

straight away – long before the cargo has been unloaded. 

It all starts with a telephone call – many telephone calls. These 

conversations are held with commodity dealers with the aim of 

ordering the cane sugar, negotiating the conditions and closing 

the contract. This is when the Treasury department hedging experts 

get in on the game. 

The Treasury staff analyse and hedge risks. 

What does Treasury actually 

mean? 

Nordzucker’s Treasury department is responsible for controlling 

liquidity (assets, borrowing, payment transactions). The aim is to 

keep an eye on the economic efficiency aspects of transactions by 

prudently supplementing the sales and purchasing activities by 

hedging the financial risks. Hedging is carried out to cover interestchange 

risks, and exchange rate and commodities risks. 

Put simply, the Treasury team is a service provider within the 

company which assesses, qualifies and quantifies the need for banking 

instruments to reduce the risks and safeguard the liquidity of 

the Group’s transactions, and ultimately also to purchase these 

instruments from partner banks. Ralf Brunkow 

10 

Dealer 

Purchase price negotiation 

Ship cargo sugar + insurance + customs 

Sugar price = world market = $ 

$ Transport time $/€ ? 

Nordzucker 

Contract: 

Payment: 

Brazil Purchase price in $ 

Purchase price in $, Nordzucker 

Bank account 

debited in € 

refineries 

Currency risks occur whenever goods are purchased in a currency 

which is not the local currency of the purchasing company. 

Buying in dollars, selling in euros 

“Let’s say we buy a ship load of raw cane sugar in Brazil. The bulk 

sugar is then transported by ship to one of our refineries. This 

sugar is paid for in US dollars. This gives rise to a currency risk 

which we have to hedge. This is our job,” says Ralf Brunkow. 

Currency risks occur whenever goods are paid for in currencies 

which are not the local currency. The foreign currency amount 

has to be paid to the seller at some point in time, which means 

that the foreign currency required also has to be bought. Fluctuations 

in the currency markets lead to additional risks associated with 

the purchase of this sugar. “One of our jobs in the Treasury department 

is to estimate and hedge the nature and scope of these 

kinds of risks. We do this by analysing the currencies involved in 

the sugar transaction, and estimating the time involved between 

the obligation to pay the commodity dealer as stipulated in the 

purchasing contract, and the later sale to our own customers,” 

explains Brunkow. This enables the team to estimate which of the 

hedging instruments made available to Nordzucker by the banking 

market is the best one in each case. 

Which exchange rate applies? 

The question not only involves the currency in which the transaction 

is paid, but also when the cargo has to be paid for. “If we stick 

with our Brazilian example; it takes several weeks for the journey 

to our refineries after the purchase date. But the cargo is already 

ours shortly after closing the contract. To safeguard our interests, 

we have to establish as early on as possible the exchange rate at 

which we have to pay for the cargo,” says Christoph Bienwald 

from the Treasury team front office responsible for aspects including 

the trade in currencies and derivatives. “The exchange rate 

can vary enormously: between the time the ship leaves the home 

port and the day and the hour it arrives at the destination port. 

This can give rise to very unfavourable effects. Our job is to keep 

the risk for Nordzucker as low as possible,” adds Frank Neumann, 

his front office colleague. The Treasury specialists therefore try 

to negotiate a deal with a house bank as quickly as possible after 

closing the contract. The deal defines the previously fixed exchange 

rate and the date at which Nordzucker pays for the currency it 

requires. This financial instrument is called a forward exchange 

contract. 

If one just sat around twiddling one’s thumbs, and waited 

until the payment was due, it is possible that a much higher purchase 

price would have to be paid on the payment date in the 

local currency if the exchange rate fell – a risk which is particularly 

strong nowadays because of the instability of the currency markets 

in the light of the financial problems in Greece. This could 

mean that Nordzucker could actually make a loss on the bottom 

line. This financing instrument is therefore a pure protective 

measure. It prevents speculation on the unforeseeable price >>

European Commission: No sugar market 

regime after 2015? 

Nordzucker advocates 

continuation until 2020 

As part of its proposals for the reform of 

the Common Agricultural Policy (CAP), the 

European Commission has now officially 

published its ideas about the further reform 

of the sugar market regime. According to 

these proposals, the sugar market regime 

will end as defined in the current regulations 

on 30 September 2015 at the end of 

the 2014/15 financial year. This means that 

the main elements concerning the quota 

regulations and the minimum beet price 

will be dropped from 1 October 2015. A 

private storage system is proposed to stabilise 

the market. The relationships with 

the beet farmers are to be regulated on the 

basis of mandatory sector agreements. In 

addition, the proposal also includes dropping 

the production levy, and removing 

all export restrictions. 

The European Parliament recently 

advocated continuing the sugar market 

regime until 2020. In agreement with the 

Umbrella Organisation of the North German 

Sugar Beet Growers, the Confederation 

of Euro pean Beet Growers (CIBE) and the 

Umbrella Organisation of the German Sugar 

Industry, Nordzucker also advocates a 

continuation of the sugar market regime 

until 2020. Nordzucker is in favour of the 

Commission’s proposal to drop the production 

levy and remove export restrictions. 

Continuation from page 10 “Hedging currency risks” 

gains and creates a reliable basis for estimating 

our corporate revenues. 

The Nordzucker Group has a range of 

house currencies such as the euro, the Polish 

zloty and the Swedish crown. In addition, 

there are also the currencies of our clients 

and suppliers, such as the US dollar. 

Continuation of the existing system is 

necessary to safeguard supplies of sugar 

from beet to cover a major part of the 

demand on the European market, and to 

uphold the planning security of our beet 

growers. Additional flexible instruments, 

such as the authorisation of non-quota 

sugar for the EU food market, and facilitating 

imports if the preference imports do 

not materialise must be implemented early 

The Nordzucker Treasury department 

works closely with the procurement and 

sales departments to identify as early as 

possible any currency and price fluctuation 

risks which may affect Nordzucker, 

and to take the appropriate hedging 

measures. A great deal is involved until a 

NEws UpdatE 

Will the minimum price and quota regulations be abandoned after 2015? The future of the sugar market regime 

will be negotiated as part of the CAP reform. 

on in future by the Commission in response 

to shortages in supplies. 

The Commission’s proposals on the 

sugar market regime will be discussed 

as part of the reform of the whole CAP. The 

negotiations will continue into 2013. We will 

raise our interests in this debate. Independent 

of these discussions, it is vital to ensure 

that we are well prepared for all possible 

outcomes of this reform process. n kds 

package of cane sugar arrives on a supermarket 

shelf. n 

Nina tatter 

Corporate Communications 


BEEt 

The 20 ·20 · 20 Nordzucker project is a 

challenge which we are tackling in many 

small steps in all Group regions by bundling 

short-term and medium-term activities. 

In 2011, competence teams started their 

work in the cultivation regions. These 

working groups will work in more detail 

on specific issues together with the farmers. 

This joint effort between beet farmers, 

Nordzucker beet office staff, and research 

and technology partners aims to boost 

sugar yields so that at least 20 per cent 

of Nordzucker farmers can achieve 20 

tonnes of sugar per hectare by 2020. 

Refining the production technology 

Implementing this objective partially involves 

direct improvements in production 

technology. This involves scrutinising the 

whole process chain from tillage to sowing 

and beet harvesting. This frequently concerns 

details which are already well known 

but are not yet implemented adequately 

on a regional basis. In addition, we want to 

elaborate unidentified effects and relationships: 

the type of potential that can only 

be revealed by focused research activity 

12 

SERiES: 20 · 20 · 20 

20 ·20 ·20 

Boosting yields on 

a systematic basis 

Numerous activities in all Nordzucker cultivation regions 

and effectively implementing the necessary 

measures. Research today is so specialised 

that Nordzucker sees the key to its 

success here in tailored partnerships. This 

means that the activities have to be intelligently 

subdivided into the various disciplines 

so that work can be carried out by 

organisations with the relevant technical 

expertise. 

Harvesting what has grown 

Nordzucker already invests a great deal of 

time and effort into every aspect which 

can reduce the losses incurred when lifting 

and processing the mature sugar beet. The 

use of harvesters, the loading and cleaning 

processes, as well as clamp storage, are all 

vital process steps where we need to do 

more to mobilise the still considerable reserves. 

Letter, portal, SMS: who can we reach 

via which channel? 

Elaborating measures which boost yields is 

one thing. Just as important, if not more 

so, is getting these measures across to 

those who need to implement them, and 

Competence team 

meeting in Wanzleben. 

realising them in practice. A vital aspect 

here is the optimal organisation of this 

knowledge transfer. This refers both to 

Nordzucker’s in-house consulting organisation 

and implementation, and to the communication 

channels and media which are 

used. This raises the question: which is the 

best communication channel? Direct discussions 

with consultants, SMS, e-mail, portal, 

fax or even the good old letter? The most 

important thing is that Nordzucker satisfies 

the different communication habits of its 

many farmers. 

Pages 13 and 14 present a number of 

concrete measures to boost yields in the 

regions. 

dr Ulf wegener 

Senior Manager Agricultural 

Sourcing Strategies

20 · 20 · 20 in Central Europe 

Highlighting the potential 

for boosting yields 

In addition to the work of the Nordzucker 

competence teams, numerous tests have 

been and are being carried out in North 

Germany to highlight the potential for 

boosting yields in future. Work is currently 

focused on: 

Growing-space optimisation (equally 

spaced seeds): Tests have been carried out 

to see whether a square pattern of beet 

plants – in other words, a smaller distance 

between rows but a greater distance between 

each sugar beet plant in the rows 

– can boost yields compared to the current 

cultivation practice. 

Early sowing: “A rule of thumb is: the earlier 

the sowing, the better the harvest.” 

This is only true, however, if the soil is in 

optimum shape, and the sugar beet varieties 

used are shoot beet resistant. 

Under-root fertilising: The focus here was 

previously on nitrogen fertiliser. The latest 

20 · 20 · 20 in Northern Europe 

Learning from the best 

Nordic Sugar is actively integrating its beet 

farmers into the 20 · 20 · 20 project. “How 

can we help our farmers get even better?” 

This was the question discussed at the first 

meeting of our top farmers. The answer is 

obvious: we jointly have to concentrate primarily 

on the complex and difficult questions 

with high improvement potential. 

Doing more to safeguard the early and 

reliable establishment of the crop: The 

most important aspect is crop establishment. 

We are therefore currently working 

together with research organisations to 

elaborate a development programme to 

increasingly safeguard early and reliable 

plant development – hopefully with the 

help of new technologies and cultivation 

methods. 

New project in North Germany: autumn strip-till sowing. This involves creating strips 

in October for beet sowing the following spring. Sowing is carried out directly in these 

strips. This can only be done with the use of georeference data because the strips created 

in autumn have to be relocated again down to an accuracy of two centimetres 

by the sowing machinery in the following spring. 

tests are looking at the placement of multinutrient 

fertilisers. 

Leaf analysis: Do neighbouring plants with 

different growth behaviours but with the 

same nutrient contents in the soil have different 

nutrient contents in their leaves? 

Can this information be used to derive 

special fertiliser recommendations? 

Autumn strip-till sowing: The autumn 

strip-till sowing project is a completely 

new research area which Nordzucker is 

looking at together with two partners. 

After the successful implementation of 

strip-till sowing on light soils – this means 

Focusing more intensely on losses: We are 

also focusing on harvesting losses. We 

have initiated training courses for drivers 

of harvesting machinery. The aim is to improve 

the awareness of drivers and farmers 

for potential losses, and to find out ways 

of reducing such losses. Nordic Sugar has 

developed a new app to quickly evaluate 

harvesting quality. The small smartphone 

application enables farmers to reliably and 

quickly estimate the losses when they are 

out in the field. n 

Christer sperlingsson 

Senior Manager 

Beet Supply 

Nordic Sugar 

preparing the soil in strips and simultaneously 

sowing the seeds in the spring – we 

are now looking at whether this procedure 

can also be successful in heavy soils. 

In addition to our ongoing research 

projects, Nordzucker harvesting training 

courses and 2011 harvesting loss monitoring 

programme also both aim to fully exploit 

the existing yield potential. n 

dr andreas windt 

Manager Agricultural 

Consulting 

BEEt 

In the past it has been difficult to objectively assess 

harvesting quality. Now, with Nordic Sugar’s new 

mobile app, harvester drivers and beet farmers can 

now determine the losses from broken roots with a 

few taps on the touch screen. 

>> 


BEEt 

Continuation from page 13 

“Boosting yields on a systematic basis” 

20 · 20 · 20 in Eastern Europe 

Preference for mulch 

sowing 

The 20 · 20 · 20 project was discussed in 

2011 with the farmers’ associations in 

Poland and Slovakia. The feedback was 

very good and the topic was discussed 

at numerous farming meetings. We have 

also informed the sugar beet research 

organisations about Nordzucker’s objectives. 

We integrate the 20 · 20 · 20 targets in our 

daily consulting and information work. In 

addition, we have also initiated a regular 

exchange of expertise with our 20 best 

farmers. Different groups of farmers are 

working on 20·20·20 to ensure that our 

activities can be customised to the needs 

of each and every farming enterprise. 

Preference for mulch sowing: One of our 

major objectives in Poland is to reduce 

the amount of ploughing in spring and 

prepare the fields as much as possible in 

autumn. Seed bed tillage in Slovakia is 

also to be concentrated in the autumn 

period. The focus here, however, is on 

tillage without ploughing. We want to 

increase the proportion of mulch sowing 

in both countries to improve the soil 

structure and water retention capacities. 

14 

Tests are being carried out in North Germany to see whether the square spacing of beet 

plants produces a higher yield. 

Sowing early and quickly: The biggest 

challenge in both countries is early sowing. 

Sugar beet is in competition with other 

crops which have to be sown in spring. 

They have to be drilled at the right time, 

not just when all of the other work has 

been finished. In addition, we want to 

concentrate the sowing period further to 

achieve compact sowing periods under 

optimal conditions. 

Most important success factor: plant 

density: Independent of the beet growth 

phase, weeds should be sprayed at a very 

early stage. In the case of fungicides, a local 

monitoring programme tracks regional infections. 

We give special recommendations 

for the proper application of fungicides 

with the aim of preventing their excessive 

use. But the most important factor for the 

success of the harvest in Poland is plant 

density. Our objective is 100,000 plants 

per hectare. 

Harvesting work: To reduce harvesting 

losses further, all of the people involved 

need to know exactly what they have to do. 

Nordzucker therefore invites all participants 

(harvester drivers, beet transporters, 

beet farmers) to training courses. Another 

objective for Poland is the more frequent 

use of six-row harvesters. As a general rule, 

beet clamps have to be protected from the 

weather from 20 November onwards. Beet 

storage in Slovakia is to be increasingly done 

on concrete surfaces to ensure better loading 

and cleaning. n 

dr Gerd Jung 

Senior Vice President Beet 

Procurement Eastern Europe 

New member of the Supervisory Board: Matts Eskel Rosendahl 

At this year’s Nordzucker AG annual general meeting on 7 July, the Swede Matts Eskel Rosendahl was voted onto the 

Nordzucker AG Supervisory Board. Rosendahl gained 99.93 per cent of the votes, and succeeds Gert Lindemann who 

stepped down from his office with effect from 24 February 2011 after being appointed Minister of Agriculture in 

Lower Saxony. 

Rosendahl (58) grew up on a farm near Örtofta, and studied agriculture with a major in economics at the 

Swedish University for Agriculture SLU (Sveriges Lantbruksuniversitet) in Uppsala. After completing his degree, he 

specialised in finance and worked in various positions in the food sector: between 1984 and 1989, he was initially the 

deputy finance manager and later the finance director of the Swedish preserved-vegetable producer Felix AB. He then 

moved to the food group Procordia Food as the finance director. He then occupied various positions at the Swedish 

co-operative Swedish Meats ek. Förening, where he worked as finance director and chief financial officer between 2001 

and 2009. Matts Eskel Rosendahl has been a consultant since 2010. The Nordzucker AG Supervisory Board benefits from 

his many years of experience in finance departments, and his in-depth knowledge of the Scandinavian food market. n

Polagra 2011 

Nordzucker showcased 

in top form 

Nordzucker presented its products at 

Polagra-Food for the seventh time. The 

trade fair took place in the Polish city of 

Poznan from 12 to 15 September 2011. 

It is Eastern Europe’s most important 

food exhibition and boasts around 1,000 

exhibitors and over 50,000 visitors. 

The traditional industrial fair attracted more 

attention than usual this year because of 

the Polish presidency of the EU Council – 

the show was therefore given a completely 

new look. And alongside the usual company 

representatives, purchasing managers 

and retail chains from across Europe, 

the visitors this year also included numerous 

representatives from politics, embassies 

and national chambers of commerce. 

Good feedback on the first Nordzucker 

Congress 

Nordzucker Polska made 200 per cent use 

of this special trade fair year: the trade visitors 

not only enjoyed an innovative presentation 

of Nordzucker products on the 

enlarged stand, 70 selected visitors were 

also invited to attend the first Nordzucker 

Congress – and Nordzucker Polska had a 

very good response from the invitations it 

sent out to customers and business partners, 

and representatives of the authorities, 

government and the media. 

The highlight of this year’s Polagra fair was 

the Nordzucker Congress, which was implemented 

with the active involvement of 

Nordzucker Director Mats Liljestam and 

Dr Volker Diehl, Senior Vice President Sales 

Nordzucker Eastern Europe. The participants 

at the congress included representatives 

of industry, trade, retail, authorities, 

banks and trade media. The speech by 

the President of the Poznan International 

Fair, Andrzej Byrt, attracted a great deal 

of attention, as did the brief appearance 

of the Deputy Minister of Agriculture, 

Andrzej Butra, who is responsible for the 

sugar market. 

Detailed business information was 

presented during the congress. Mats Liljestam 

analysed our division from a global 

point of view. Volker Diehl provided the 

participants with an insight into the European 

market and Eastern European Region. 

Maiusz Tomczak, Senior Sales Manager 

Nordzucker Polska, presented the activities 

of Nordzucker Polska in detail, not forgetting 

to also explain the special features of 

the Polish market. And last but not least, 

Lars Bo Jorgensen, General Manager NP 

Sweet, presented the new NP Sweet division. 

The participants used the lively forum 

discussion at the end to ask the panel a 

large number of questions. 

The exhibition team: the Polish sales team, guests from Slovakia and the regional 

managers who all played their part in the success of the congress. From left to right 

(upper row): Mariusz Tomczak, Jacek Drejling, Ivan Kardoš, Volker Diehl, Mats Liljestam, 

Marek Kmita, Lars Bo Jorgensen, Tomasz Wroblewski, Piotr Wawro, Lubomir Fischer; 

below: Dirk Clauss, Danuta Dabrowska, Norbert Antalik, Eva Krook. 

This year’s enlarged Nordzucker stand, which was 

accessible from all sides this time, greeted Polagra 

visitors with general information on the ground floor, 

and provided space on the upper floor for discussions 

with Nordzucker clients. Each of the four sides of the 

stand was dedicated to one product group. 

Eva Krook presented Nordzucker Polska’s Sweet Stevia 

product selection to interested visitors, and explained 

the research and development work being conducted 

on completely new options for sweetening. 

Acanthus Aureus for outstanding marketing 

by Nordzucker Polska. 

The Group’s Eastern Europe Region presented 

itself in Poznan as an altogether 

strong part of Nordzucker. Nordzucker 

provides its customers in Eastern Europe 

with high quality products and services, 

and is open for the establishment of 

strong partnerships on the basis of the 

exchange of expertise and information. 

The highlight of Polagra was the bestowal 

of the Acanthus Aureus Awards 2011: 

Nordzucker Polska received a prize for the 

second time for the exemplary implementation 

of its marketing strategy – a major 

success for the whole Nordzucker team. n 

lubomir Fischer 

Marketing Manager 

Eastern Europe 


MarKEts aNd CliENts SPOTLiGHT ON THE MARKET 

Sugar demand remains high 

Prices well above the EU reference price 

The prices for sugar on the world markets 

have been unusually high since 2010. And 

the prices within the EU are currently also 

well above the reference price. This price 

rise has been significantly influenced by 

the decline in stocks and the supply shortages 

in the markets. The high world market 

price in turn led to a reduction in sugar 

imports from ACP/LDC countries to the EU 

because the low EU price meant that sugar 

exporters could sell their goods more profitably 

in other countries. This situation – not 

foreseen during the reform of the sugar 

market regime in 2006 – has caused the 

European Commission to respond by implementing 

three measures to ensure that 

the EU market is adequately supplied with 

sugar: converting 526,000 tonnes of nonquota 

sugar into quota sugar for human 

consumption, opening a tariff quota of 

500,000 tonnes without charging import 

duties and tendering the tariff rate for 

The supply situation remains tense despite high production. 

16 

imports. This tender gained offers of 

356,566 tonnes of sugar by the end of 

September. All of these measures made 

around 1.4 million tonnes of additional 

sugar available for the EU market. 

Production: Positive balance expected 

The outlook for the sugar market in the 

2011/2012 financial year seems, however, 

to be developing much more positively. 

We are again expecting a positive world 

sugar balance after two years of shortages 

on the world markets. According to the 

latest estimate from F.O. Licht, world sugar 

production in the 2011/2012 financial year 

is forecast to be around 5 million tonnes 

in excess of expected consumption, with 

total production of 176 million tonnes. This 

is due to the excellent harvests in the EU, 

India and Russia. The first estimates suggest 

that the EU will produce 2.4 million 

tonnes more than in the previous year – to 

give a total volume of 17.4 million tonnes. 

Austria 

Belgium 

Czech Republic 

Denmark 

Finland 

France 

Germany 

Greece 

Hungary 

Italy 

Lithuania 

Netherlands 

Poland 

Rumania 

Slovakia 

Spain 

Sweden 

U.K. 

EU 

The current estimates are that the raw sugar 

production of Europe’s top producing 

countries – France and Germany – will be 

4.6 and 4.2 million tonnes respectively. If 

the quota sugar production remains unchanged 

at 13.3 million tonnes, this will 

mean an increase in non-quota sugar production 

to 4.1 million tonnes, a year-onyear 

rise of around 2.4 million tonnes. 

Outlook: Continued high domestic 

demand 

Despite the increase in production in the EU, 

there will still be supply problems even in 

the new financial year. This is due to the low 

stocks at the beginning of the financial year, 

as well as the continuing high demand in the 

EU – which in our opinion has been underestimated 

by the European Commission. 

Moreover, no rise is expected in imports 

from ACP/LDC countries. Against this background, 

the EU must therefore reach a 

decision early on continuing the additional 

Changes in sugar production 2011/12 to 2010/11 

Estimates in per cent 

Source: F.O. Licht 

-5 0 5 10 15 20 25 30

measures adopted in the last financial year 

to supply the EU sugar market. The preferred 

choice of instrument here must be 

the release of non-quota sugar. 

The significant fluctuation in prices on 

the world market for sugar in recent months 

will most probably continue, particularly 

because of the uncertainty in the financial 

markets. But the expected growth in stocks 

will probably ultimately lead to slightly 

lower prices overall on the world market. n 

Change in sugar price since 2006 

In EUR per tonne 

650 

550 

450 

350 

250 

150 

September 

2006 

September 

2007 

EU reference price 

dr Klaus schumacher 

Group Vice President 

Communications, 

Economics, Public Affairs 

thordis Möller 

Economics 

Source: EU price reporting 15/09/2011 

632 €/t 

September 

2008 

542 €/t 

September 

2009 

September 

2010 

538 €/t 

404 €/t 

September 

2011 

EU market price World market price €/t 

Early start to the 2011/12 campaign, 

Nordzucker factory in Clauen. 

Sugar production and consumption around the world 

2002 – 2011 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

2002 

2003 

2004 

Change in cultivated 

area in % 

(right-hand scale) 

Source: F.O. Licht 

Sugar on the world market is still more expensive than in the EU. A good harvest is expected in the EU in 2011/12. 

16 4 14 2 5 

-1 

-9 

2005 

MarKEts aNd CliENts 

2006 

-16 

2007 2008 2009 2010 2011 

50 

40 

30 

20 

10 

0 

-10 

-20 

-30 

-40 

-50 

Consumption (in 1,000 tonnes, left-hand scale) 

Production (in 1,000 tonnes, left-hand scale) 

-7 



What is our sugar used for? 

Just almonds, sugar and 

the “sweet secret” 

We visit Niederegger 

How is a marzipan star or a tasty marzipan 

loaf produced? In Lübeck, I went to look 

in detail at how Nordzucker and almonds 

are turned in marzipan. Eva Mura, my 

colleague at Niederegger takes me on a 

tour of the production facilities. Before 

we start though, I pull on a white lab coat 

which extends down below my knees, take 

off my watch, and put on a disposable hat. 

I have to make sure that all my hair is 

tucked away safely beneath the hat. 

The tour can now begin. And that means 

starting with almonds. Niederegger is supplied 

with almonds from the Mediterranean 

area. They are sent to Lübeck without their 

wooden shells. The light coloured nut is 

only covered by a thin brown skin. We have 

arrived in the room where the almonds 

are stripped of this last coating. 

It is loud. We have to shout into each 

other’s ears to make ourselves understood. 

Otherwise all you can hear is the noise of 

the machinery. Three boiling machines are 

working at the same time. Each one consists 

of a large funnel, a horizontal pipe extending 

to the left and a wide vertical pipe 

with a diameter about the same as the 

18 

COVER 

length of my arm. The almonds fall through 

the funnel onto a strongly vibrating conveyor 

belt. That is why it is so loud in the 

room. The belt travels through the pipe. As 

well as being shaken up, the almonds are 

also exposed to steam, which loosens the 

skin so that it can be shaken off. When they 

arrive at the bottom, the almonds are flushed 

with water in the second pipe. A vibrating 

spiral conveyer then raises the almonds to 

another level where the almonds pass in 

front of an infrared camera. This checks 

whether the almonds have been skinned 

and are white. 

Back to the start 

The apparently spotless almonds are then 

transported into the next room. We follow. 

This is where sugar 

enters the scene. Fine 

to medium-grained 

crystal sugar. 

Niederegger currently produces 30 tonnes of the finest marzipan every day in a huge range of shapes. 

It is much quieter here. Seven women sit 

around a one-meter-wide conveyor belt. 

The almonds travel past in front of their 

eyes. The “almond ladies” manually check 

what the infrared monitoring camera missed 

and send back the almonds which have 

not yet been stripped of their brown skins. 

This is important because quality is a big 

priority here. At the end of the conveyor 

belt, the almonds fall into a stainless steel 

container. Jets spray on some water. The 

almonds are drawn upwards through a small 

pipe by the suction of the water. This transports 

them into a third room – the production 

area. It smells of almond oil. The 

heat of the room wafts the scent in my 

direction in a matter of seconds. The pipe 

then runs downwards again behind us at 

the back of the room. At the end of the 

pipe, it spits out almonds which are then 

washed again in two large perforated copper 

drums. The almonds constantly arriving 

at one end, push the almonds that are 

already there to the front. Water suction 

then transports them again through a pipe 

to the next station. This is where sugar enters 

the scene. Fine to medium-grained 

crystal sugar. 

The almonds fall from above on the 

right into a funnel and then into a large 

rectangular tub. It has weighing scales attached. 

The sugar now rains down from 

above on the left to join the almonds. Two 

thirds almonds to one third sugar – the basic 

recipe for marzipan. Add a bit of water 

to be able to stir the mixture better. There 

are two of these weighing and mixing installations. 

The mixture then travels from 

the container to a roller on a conveyor belt. 

The roller is made of granite. Like a huge 

heavy mangle, the roller crushes the sugaralmond 

mixture. First coarsely. And then on 

to a second roller with a finer surface. 

Niederegger currently produces around 

30 tonnes of marzipan per day. 

Shimmering heat above the kettles 

The almond and sugar dough is the raw 

marzipan mixture. Niederegger does not

add any more sugar in the subsequent 

processing steps – unlike other manufacturers 

which do add sugar. The mixture that 

is squeezed out by the rollers is pushed 

into 100-kilogramme trolleys by a man with 

an oversized dough scraper. The mixture 

is then again transported to a higher level, 

the trolley being moved up to a roasting 

kettle. There are 20 of them standing in 

the room in two rows. It is warm in here. 

The round copper cauldrons are heated 

from below with an open flame. I can see 

the heat shimmering above the kettles. A 

large stirrer turns constantly in the kettles to 

ensure that nothing burns on at the bottom. 

The marzipan mixture now has a temperature 

of 90 degrees Celsius. Eva Mura explains: 

“This is where the marzipan gets its 

aroma. And the sugar crystals are melted 

by the heat.” Smiling she adds: “So that 

nothing crunches when people bite into 

the marzipan.” 

Before the now cream-white marzipan 

can be processed further, it has to be cooled 

down again. This is done in a large copper 

kettle into which dry ice is blown from above 

onto the marzipan mixture. The mixture 

then goes on further into a type of mincer 

which presses the marzipan into huge 

50-kilogramme blocks. They 

are then vacuum-packed 

and stored for furtherprocessing. 

Niederegger’s sweet secret 

But the most important ingredient is still 

missing. Although a mixture of almonds 

and sugar is marzipan, it is not Niederegger 

marzipan. This requires the addition of the 

“sweet secret”. It is apparently a liquid 

similar to rose water. This is added after a 

few days of resting in the maturing room. 

We now go to the final processing 

area. Mmm – it smells really good here! It 

smells of warm chocolate. The machine 

which is stamping out marzipan stars is my 

favourite: it is filled with marzipan paste at 

the top, and at the bottom, a large black 

roller presses out the stars. I count 15 stars 

in a row. How many rows are there? Maybe 

ten? Whatever, a galaxy of stars lands on 

the conveyor belt in no time at all. And 

then the best bit: stars fall onto a second 

conveyor belt where they lie with their 

backs facing upwards. They are now coated 

with chocolate. The naked marzipan 

stars with the chocolate coated bases are 

cooled down and then “chocolated” a second 

time. The bases of the stars are therefore 

double chocolated. Aha, that is why 

they make such a nice cracking sound! 

When the stars have been coated with 

chocolate twice over, the star conveyor 

belt then passes through a second 20-metre-long 

cooling duct. The stars are now 

cool, ready and can be wrapped. 

In the packaging line, not only 

stars are being packed, but also 


A large stirrer turns constantly in the roasting kettle to ensure that nothing burns on at the bottom. What the infrared camera misses is found 

by the “almond ladies”. 

Stars, hearts, loaves and marzipan pieces 

are being packaged. 

marzipan loaves, hearts and marzipan pieces. 

The brightly coloured thin aluminium foil 

runs through a machine and packages every 

star separately. One breaks every now and 

again. This is my chance: I can officially eat 

a fresh marzipan star – fantastic! Once the 

stars have been wrapped up, they are put 

into cartons by hand. Countless cartons of 

stars, loaves, good-luck piglets and Father 

Christmases are stacked at the end of the 

hall. Niederegger has 300 different marzipan 

articles in its range. And a third of each 

one is Nordzucker. n 

Nina tatter 

Corporate Communications 


Bremer 

Klaben 

Ingredients: 

2 packets of dry yeast 

200 ml milk, warm 

750 g flour 

130 g “Unser Feinster” sugar from SweetFamily 

1 Tsp salt 

1 Tbsp rum 

1 Tsp lemon peel, grated 

6 drops bitter almond oil 

2 pinches cardamom, ground 

2 pinches mace, ground 

250 g butter, clarified 

300 g raisins 

150 g currants 

100-150 g candied peel 

100 g almonds, ground 

50 g SweetFamily icing sugar 

Preparation: 

Place the flour into a mixing bowl and mix it together 

with the dry yeast, grated lemon peel, cardamom and 

mace. Add the sugar and the milk and knead everything 

into a smooth dough. Now also knead in the 

salt, rum, bitter almond oil and clarified butter. Allow 

the dough to rise for about an hour in a warm place. 

Then knead in the currants, candied peel, raisins and 

almonds. Shape the dough into a loaf and bake at 

150 °C for 45 – 55 minutes. Brush the butter onto the 

slightly cooled Klaben loaf and sprinkle with the icing 

sugar. 

Preparation time: 

Approx. 45 minutes excluding the waiting times 

Nutritional values per 100 g: 

Energy: 365 kcal 

Fat: 13.8 g 

Carbohydrates: 53.2 g 

Protein: 5.6 g

Akzente - Nordzucker AG

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