Akzente News from Nordzucker | Issue 2 | July 2011
A return to former strength
2011 grower survey covers all regions
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Client visit regarding sustainability
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Pleasing earnings for 2010/2011 and good prospects for the current year
Ambrosia and Bifor: keeping bees healthy
CONTENTS
4 Looking ahead for the 2011 campain – all Nordzucker plants are well prepared.
21 An unforgettable experience: the mobile farmyard visits Braunschweig.
10 Beet was sown early in 2011.
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NEWS UPDATE 4
“There’s no returning to short campaigns” – an interview with Axel Aumüller
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SERIES Profitability plus: extending and modernising the Chełmża service centre
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NP Sweet: Nordzucker and PureCircle establish a joint venture
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A return to former strength: pleasing figures for 2010/2011
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EU agricultural policy post-2013
BEET ▼
10 2011 gets off to a good start for beet 12 2011 grower survey covers all regions
MARKETS AND CLIENTS 14 Spotlight on the market ▼ ▼
15 Taste of the North 16 Customer focus on sustainable development 18 Ambrosia and Bifor: keeping bees fit and active
COMMUNITY 21 An unforgettable experience: the mobile farmyard 23 This and that 24 Strawberry and raspberry compote with ginger
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), Marion Stumpe (ms), Dr Ulf Wegener | Layout and typesetting by: Sieler Kommunikation und Gestaltung GmbH, Frankfurt | Printed by: Siegert Druckhaus, Braunschweig | Image credits: Fotolia, iStockPhoto, Nordic Sugar, Nordzucker, Günter Nimptsch
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EDITORIAL
“We’ve achieved our interim objective, but we need to keep working hard.”
Hartwig Fuchs
Dear shareholders and friends of Nordzucker, We were delighted to announce pleasing Group-level business figures for the past financial year at our annual accounts press conference in Braunschweig in May. We exceeded our targets with our efficiency-enhancing programme Profitability plus, which – together with the good market and sales conditions – was largely responsible for this positive trend. At the same time, we disposed of business areas which did not involve our core line of business: sugar. With our earnings, we succeeded in repaying debts early, thus increasing our company’s scope for action once again. However, there is no reason to sit back in the belief that the work has now been done. We may have achieved our interim objective, but we are still a long way from our ultimate goal. Only when we can operate profitably even in difficult circumstances – for example in scenarios with falling markets or low-yield harvests – will we have brought about a sustainable change. This means the company needs to be well positioned within the competitive environment and keep actively shaping the international concentration on larger units which is emerging in the sugar industry. In other words, we need to keep working hard. Sustainable corporate strategies are a megatrend which will change us too. This is something which also affects our relationships with our clients. Many of our clients are now examining the whole value chain, including all the ingredients needed for their products – such as our sugar. Unilever and Coca-Cola visited our sites in Arlöv and Nordstemmen to discuss the joint steps to be taken in the future. Our 13 sugar factories are busy preparing for the next sugar beet campaign. Moving forwards, the current state of the vegetation in the fields makes us highly optimistic. Sowing conditions were almost perfect in the vast majority of our countries, laying the foundations for promising yields and therefore intensive campaigns. May also brought an experience of a very different kind. The mobile farmyard (“Erlebnis: Bauernhof mobil”) visited Braunschweig to show consumers, children and young people how modern agriculture works, where foods come from and how they are used. With 15,000 visitors in the course of three days, the event was a great success. Both we and our event partners – the Association for Sustainable Farming (FNL) and Braunschweig Rural Association (“Landvolkverband Braunschweiger Land”) – are proud to have been involved. My fellow Board members and I would like to wish you a wonderful summer – but not without the rain our farmers need, so that we can celebrate a rich 2011 harvest at the end of the year. Best regards,
Hartwig Fuchs
Akzente 02/11
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NEWS UPDATE
The Nordzucker plants are well prepared for the 2011 campaign.
There’s no returning to short campaigns Axel Aumüller talks about adjusting methods and processes to accommodate long campaigns. The whole Nordzucker Group has had to cope with two tough campaigns in a row. All the factories struggled in the face of an early winter, deep frosts and unusual amounts of snow. But preparations are now well under way for the next campaign, making this the ideal time to talk to Chief Operating Officer Axel Aumüller about the steps which are being taken and the prospects for the future.
Axel Aumüller, Chief Operating Officer, Nordzucker AG
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Are long campaigns lasting 120 days really necessary, or would it be feasible to return to 90 days, for example? Axel Aumüller: There’s no returning to a 90day campaign. The changes in the market organisation and considerably lower average
sugar prices show that short campaigns are no longer sufficiently cost-effective. The same applies to reversing the modifications to factory structures, which have now been successfully completed. Nordzucker has delivered on its remit in full here in all regions. Was Nordzucker prepared for such a long campaign and the impact of external factors such as snow and frost? Axel Aumüller: Definitely. Since the 1990s, Nordzucker has been using methods which enable beet to be processed even in adverse weather conditions. As regards beet deliveries and storage, this includes prewashing the crop in the fields. As the soil tare is then lower, the beet can easily be stored tempor-
NEWS UPDATE
Tackling low temperatures with a high level of flexibility: harsh winters place great demands on staff at the plants too.
arily in clamps at the edge of the field. By taking the logical step of using fleece covers for the beet, we have also helped to ensure it can be processed for longer. The beet yards are always cited as problem areas. What progress has been made there? Axel Aumüller: Between 1994 in Klein Wanzleben and 2003 in Schladen, we converted all our German beet yards from wet unloading systems to dry unloading and dry storage. The advantage of this is that the beet no longer freezes together while it is being stored, and it can also be handled more easily when there is a frost. In addition, the just-in-time supply system has reduced the average quantity in storage overall. Storage in the yards at our international locations is tailored to local conditions. Meanwhile, the factories and beet suppliers liaise closely to ensure that the constant supply to the factories is adjusted precisely to both weather conditions and processing requirements. The introduction of heated flume water also makes a real difference here. This is the best possible way to wash soil off the beet at very low outdoor temperatures. When I say “the best possible way”, it depends of course on the length and severity of the frost.
Maintaining juice purification equipment to prepare it for long running times.
Beet deliveries are affected by harsh winters, of course, but so is production. What steps have been taken here? Axel Aumüller: It is correct that beet is difficult to process when it freezes and defrosts. That has an impact on juice filtration, for instance. This is a good example of synergies at the company: together, staff in the new central Innovation & Technology department – made up of the separate departments at Nordzucker and Nordic Sugar – have further optimised our processes during the last two campaigns. We can now significantly improve the filtration properties of the juice by adding calcium carbonate crystals and dextranase. This process can be tailored precisely to the specific circumstances. A new method has also been established to prevent a potential deterioration in the juice colours, which can occur due to lengthy processing and the effects of temperature. We have also adjusted maintenance at the plants to the longer campaign. This ensures that downtime does not exceed normal levels, although the machinery is being used for longer periods.
options for disposing of beet soil. In the last campaign there were times when the wastewater management came under a great deal of pressure, which meant that water processing took longer, both during and after the campaign. As spring was warm, this resulted in some unpleasant odours. Nordzucker will continue to work on drawing up concepts for solutions to this problem and adjusting the capacity of the wastewater treatment system and the pools as needed. Are you optimistic about the next campaign? Axel Aumüller: Yes, I'm an optimistic person. Of course, I can’t and won’t pretend that no plant will fail for an extended period of time at some point in the future. It is also impossible to completely guarantee that beet will not suffer so much from changing temperatures that it can no longer be processed at all. However, the challenging conditions during the last two campaigns showed that the steps we had taken helped us to reach a positive outcome for everyone involved and that our tsd plants are well prepared. ■
What else needs to be done? Axel Aumüller: We want to further optimise the wastewater processing plant and the
Akzente 02/11
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NEWS UPDATE
SERIES : Profitability plus
The Polish factory in Chełmża is being thoroughly modernised.
Manual work will soon be a thing of the past at the Polish service centre in Chełmza Extending and modernising the centre will cut the cost of packing small bags and sacks of sugar. The service centre in Chełmża, Poland, has been operating on the verge of its capacity for some time. Since the company began refining raw cane sugar, the quantity of sugar which has to be sieved, packed and loaded every year has almost doubled. “We needed to come up with a new overall concept to enable us to supply the market to the best of our ability,” explains Joachim Rüger, Head of Production in Eastern Europe. The service centre is now being completely renewed and extended as part of an investment programme spanning several years. “Previously, there was a lot of manual work involved in internal logistics. That was because the existing equipment was no longer able to cope with today’s and 6
tomorrow’s requirements,” says Rüger. “Our market position has also changed, as we now pack some of the one-kilo bags following the closure of the Hatvan site in Hungary. All of this meant our capacity had to be adjusted.” Previously, special shifts often had to be used to process larger quantities of sugar. External service providers were also needed for packing and storage. “This resulted in additional costs, which we obviously didn’t want to incur long term.” New additions in line with market requirements The concept entailed increasing packing capacity, improving internal logistics and load-
Investing and saving: the extended service centre in Chełmża is making a major contribution towards Profitability plus.
NEWS UPDATE
» Joachim Rüger Senior Vice President Production Eastern Europe
ing capacities, optimising the storage of packaging material and pallets, and bringing the working conditions for staff in line with Nordzucker’s hygiene standards for service centres. Actions soon followed: in the first phase of construction, an extra loading facility for packed products was installed in 2010 and new storage rooms were added for packaging material and pallets. The packing of one-kilo bags was completely redesigned for two lines; following a complete overhaul, a system from Hatvan was incorporated into the plant during the first construction phase and fitted with a palletising robot. A new film winder was also installed, along with an additional palletising robot for 25 and 50-kilo sacks. New transport systems were set up to transfer packets from one part of the plant to another. Another two machines were also added to the bagging station for 25 and 50-kilo sacks. The equipment is now completely electronically controlled, which guar-
“With the service centre in Chełmża, we are in a good position to work cost-effectively in the future.”
antees a high level of availability. In future, the only manual work will be transporting the palleted goods on fork-lift trucks to storage bays or loading areas. A sacking machine for “big bags” – special packs which usually hold 1,000 kilos of sugar – has also been incorporated into the new transport system. Conversion during ongoing operations The conversion work – which was largely done during ongoing operations – is due to be completed by July 2011. Then, Chełmża
will have a modern, high-performance service centre and production will be much more economical, generating significant savings for Ertragskraft plus (Profitability plus). “We are proud that we were able to complete this large-scale modernisation and conversion work while the plant was operating. None of us lost sight of our goal of working more efficiently and producing more economically. Now that the work has been done, we are confident that we will be able to tackle future challenges,” summarises Rüger. ■ tsd
NP Sweet combines the advantages of sugar and stevia Nordzucker and PureCircle establish a joint venture. Nordzucker and PureCircle Limited, Kuala Lumpur, Malaysia, established NP Sweet A/S, a sales and marketing joint venture, in March 2011. The new company will be responsible for developing and marketing a product portfolio that combines the natural advantages of sugar with the properties of stevia products, in order to meet growing market demand for sweeteners that are natural but lower in calories. The joint venture will distribute its stevia and stevia sucrose products (a combination of stevia and sugar) to customers from the food and drinks sector in Northern and Eastern Europe. The European Commission is expected to grant its approval by the end of 2011. The joint venture benefits from Nordzucker’s size, sales channels and sugar technology. Nordzucker profits from PureCircle’s stevia technology and product innovation capabilities. General Manager Lars Bo Jørgensen from NP Sweet, says: “We are confident that our stevia sucrose concepts for food and drink manufacturers offer highly efficient solutions whenever an excellent-tasting
sweetener is to be combined with existing production capabilities. Our clients benefit greatly from our partner’s high-performance platforms in the innovative field of stevia and sucrose application technology for a wide range of foods and beverages. Our technologies are supported by integrated supply chains, meaning that we can guarantee sustainability and traceability for our customers from the grower to use of the product. This is something no other company can offer.” NP Sweet is headquartered in Copenhagen, Denmark. The production of stevia sucrose will take place both in Scandinavia and Germany. The management team will be drawn from all the regions in which Nordzucker operates. Find out more at www.npsweet.com.
Akzente 02/11
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NEWS UPDATE
COVER
“We are making good progress in our drive to consolidate and enhance efficiency.” Hartwig Fuchs Chief Executive Officer, Nordzucker AG
A return to former strength A good market situation and consistent consolidation lead to pleasing figures for 2010/2011. Nordzucker generated consolidated revenues of EUR 1.8 billion in the 2010/2011 financial year. This meant the figures stayed on a par with the previous year’s, even though the Group disposed of several investments. The operating result (EBIT) came in at EUR 188 million, compared to EUR 66 million in the previous year, while consolidated net income clearly exceeded the initial targets at EUR 91 million (previous year EUR -10 million). All three of the Group’s regions contributed towards these earnings figures with high sales of quota sugar and considerable cost-cutting driven by the efficiency-enhancing programme Ertragskraft plus (Profitability plus). Loans repaid early Thanks to its good financial position, Nordzucker was able to repay loans of EUR 123 million early. All in all, financial liabilities were slashed by EUR 400 million in the past financial year. This means that a large proportion of the loans taken out for the acquisition of Nordic Sugar have already been repaid. Based on the earnings generated, the Annual General Meeting on 7 July 2011 will propose distributing a dividend of EUR 0.46 per share. This will mean that Nordzucker has been able to pay out dividends in 13 of the 14 years since it was established in 1997/1998. World market prices for sugar exceed EU levels Last year, we witnessed unusual developments on the sugar market. Due to smaller
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harvests and the ensuing fall in the global supply of sugar, world market prices were much higher than those in the EU in 2010. This resulted in growing demand for EU sugar and price increases. Nordzucker was able to take advantage of developments on world markets and the good sales opportunities for sugar in the EU. Consolidation was another major issue, including optimising the Group’s investment portfolio. Nordzucker successfully completed this process in 2010/2011 with the sale of its Serbian investment and the disposals of Maribo Seed and the Hübner Group. The proceeds generated by these disposals were largely used to repay debt. By implementing the steps from our efficiency programme Ertragskraft plus (Profitability plus), we made savings of more than the forecast EUR 26 million across the Group in 2010/2011. The acquisition of Nordic Sugar has brought lasting strength to Nordzucker. The
You can find the 2010/2011 Annual Report at our Download Center at www.nordzucker.de.
aim now is to turn both parts into a strong, forceful and efficient company with a joint corporate culture. A series of Group-wide projects have already been initiated. Ertragskraft plus (Profitability plus) is designed to boost efficiency. The PRION project, meanwhile, will optimise and harmonise all our operating processes, and Nordzucker will increase the profitability of sugar beet sustainably in cooperation with beet farmers and other partners with the aid of the 20 · 20 · 20 initiative. Bright prospects for the current year Despite increasingly volatile markets, the expectations for the current financial year are positive. Rising prices are expected to compensate for lower sales of overquota sugar from the 2010 harvest. Nordzucker expects business to proceed as normal in the current year, resulting in net income on a par with 2010/2011. ■ Bianca Deppe-Leickel, Manager Investor Relations
NEWS UPDATE
EU agricultural policy post-2013 Timetable and latest developments. WTO’s Doha round – the latest developments The Doha round negotiations continue to be blocked by a lack of rapprochement between the USA, India and China regarding services, rather than by agricultural issues. For this reason, the Director-General of the WTO, Pascal Lamy, suggested in late May that these and other disputed topics should initially be put to one side in the interests of negotiating an agreement which would guarantee developing countries stronger and simpler access to markets in the industrialised nations. At present, it is unclear whether that would include agricultural products. Should the round fail despite this new approach, the EU will step up the pace of its free trade agreements (MERCOSUR, India, etc.). There is a risk of duty-free tariff-rate quotas for sugar being implemented as part of these agreements. EU – MERCOSUR free trade agreement negotiations The next rounds of negotiations are imminent, with talks in Brussels in early July and in Uruguay in November. Concrete proposals on opening up the markets will only be made following Argentina’s presidential elections in October, at the earliest. These could then be discussed at the joint meeting in November. In the negotiations up to 2008, Brazil only called for a tariff-rate quota for bioethanol, and not for sugar. Should this remain the case, it would have indirect consequences for the EU sugar market. ■
Timetable Council for Agriculture, 17 May 2011 ●
Poland’s demands for a higher quota are rejected by the European Commission and the majority of member states.
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Commissioner for Agriculture Cioloş publicly states for the first time that the Commission’s reform proposal for agricultural policy post-2013 will also include a proposal for the future of the sugar market regime.
Agriculture Committee of the European Parliament 24 May 2011 ●
The Agriculture and Rural Development Committee discusses and approves the report by MEP Albert Deß.
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The Agriculture Committee agrees on the following wording as regards the future of the sugar market regime: “[The European Parliament] proposes extending the sugar market regime in its current form until at least 2020 and endorses suitable measures to protect sugar production in Europe and enable the EU sugar sector to improve its competitiveness within a stable legal framework.“
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The vote in the European Parliament plenum is due to take place on 23/24 June 2011.
Informal Council for Agriculture in Hungary 30 May to 1 June 2011 Summer 2011 ●
The Commission presents proposals for the EU’s overall financial framework for the period from 2014 to 2020.
October/November 2011 ●
Dr Klaus Schumacher Group Vice President Communications, Economics, Public Affairs
The European Commission presents legal proposals for the CAP post-2013.
Summer 2012 ●
The EU’s heads of government and the European Parliament ratify the financial framework for 2014 to 2020.
Late 2012/early 2013 ●
The Commission, EU Parliament and member states reach an agreement on the CAP post-2013.
January 2014 ●
The CAP post-2013 takes effect.
Akzente 02/11
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BEET
Nordzucker’s sowing dates 2011 Germany
Denmark
Sweden
Finland
Lithuania
Poland
Slovakia
Mean sowing date 2011
29 March
3 April
16 April
6 May
22 April
9 April
28 March
Mean sowing date, five-year average*
11 April
11 April
14 April
7 May
20 April
15 April
7 March
* 2006 – 2010
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BEET
2011 gets off to a good start for beet Sowing early: laying the foundation for extended growth and high yields The 2011 vegetation period got off to a promising start with beet being sown early throughout most of the Group. Compared to the two preceding years (see diagram), sowing began very early in Germany in 2011 and the sowing period was noticeably compact. Beginning in the last ten days of March, 80 per cent of the beet in the parts of Germany covered by Nordzucker had been sown within just seven days. Sowing was similarly early and rapid in Denmark, Poland and Slovakia. By contrast, the sowing period for beet growers in Sweden, Finland and Lithuania commenced somewhat later than the multi-year average. Good emergence conditions In most places, there was plenty of rain following the sowing period, meaning that the crop began to emerge quickly. As a consequence, we have seen high plant density virtually across the board. This lays the foundations for high yields and above-average quality. April and May dominated by a dry spell and wind However, from the start of April onwards, there was a constant lack of rain in many parts of Northern Germany. Combined with unusually high temperatures, this meant that the soil dried out very quickly. Some farms experienced wind erosion and minor plant losses right
through to May as a result. While other crops such as rapeseed and wheat suffered severely from the lack of water, the young beet continued to develop extremely well. These weather conditions helped to stimulate the formation of a deep root system in the beet. However, they also made it harder to combat weeds. The focus had to be placed on leaf-active pesticides which, in conjunction with a number of sharp overnight frosts in early May, stressed some of the beet and inhibited its development. As a result of these frosts, Polish farmers in particular experienced such heavy plant losses that some fields had to be dug up and re-sowed. In brief, beet development in Central and Eastern Europe – including Denmark – as of mid-May suggests that 2011 will be a very good year for beet. By contrast, crops are developing at a more average rate in Sweden, Finland and Lithuania. The amount and distribution of rainfall in June/July and the subsequent control of leaf diseases will be crucial for the beet’s further development. If these factors prove positive, we can expect aboveaverage results. ■
Dr Ulf Wegener Senior Manager Agricultural Sourcing Strategies
Sowing trend in Germany, 2009 – 2011 As a percentage of the land under cultivation 100 80 60 40 20 0 17 March
24 March
Germany 2011
31 March
7 April
Germany 2010
14 April
21 April
Germany 2009
High, even plant density generates better yields and higher quality.
Akzente 02/11
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BEET
2011 grower survey covers all regions For the first time, a Group-wide grower survey was conducted in all Nordzucker regions straight after the campaign. Although surveys have been used by Nordic Sugar since 2007 as a means of gaining farmers’ feedback, most beet growers in Germany, Poland and Slovakia are unfamiliar with this method of assessing the company’s performance. The survey for Nordzucker and Nordic Sugar focussed on the following aspects:
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Is the company a reliable business partner? Is the company innovative and forwardlooking? Are the contracts it offers tailored to the market? Does the company provide information about its development and general trends in the sugar industry?
Cultivation advice from Nordzucker ● Is the cultivation advice up to date?
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Does the cultivation advice help to increase sugar yields? Does the cultivation advice help to make beet growing more profitable? Do the cultivation advisers have extensive agricultural expertise which also goes beyond beet growing?
The 2011 grower survey was conducted online throughout the Group (except in Poland). The same questions were asked in all countries.
Approximately 30 per cent of growers took part in the survey. However, a considerably higher proportion of farmers responded in some of Nordic Sugar’s countries, especially Lithuania (Denmark 31, Finland 43, Lithuania 49 and Sweden 48 per cent). Unfortunately, it is impossible to provide personal feedback as the responses to the survey were anonymous. Here are the most important results from the various Group regions.
BEET
Germany (Central Europe) “Nordzucker provides high-quality cultivation advice, but this service must be better publicised.”
22 per cent of all beet growers participated in the online survey. This is a very good initial figure. The key findings for us are: ● Nordzucker is rated as a good business partner overall. Particularly positive mention is made of our reliability and the information provided about the company and industry.
Dr Andreas Windt Manager Agricultural Consulting
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Our advisory services – including field surveys, personal visits and telephone advice – are rated as good. However, they are not yet sufficiently well known.
Nordzucker offers very high-quality cultivation advice. It is our task to highlight the advantages of cultivation advice more.
We will step up contact with our beet growers in the future by means of qualified and interesting questionnaires. We aim to achieve a higher level of participation in the next grower survey – probably in two years’ time – and record a strong positive trend regarding dialogue intensity, awareness and the advantages of cultivation advice.
The opinion survey among growers in 2011 generated a very high response rate and positive feedback from Nordic Sugar’s farmers. Both improved compared with the last survey in 2009.
and fast advice. It also supplies comparative data and feedback on key figures. The website is used intensively: 100 per cent of the growers in Sweden and Denmark are active users.
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Northern Europe “Growers are very satisfied with our sugarbeet.nu website, our advice and our successful communication with them.”
Christer Sperlingsson Senior Manager Beet Supply Nordic Sugar
The following outcomes were particularly positive for us: ● Growers appreciate us as a reliable business partner and praise our advisory service because it plays a key role in increasing yields and profitability in beet cultivation. ●
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Growers also rate our personal contact and service very highly. They feel that they can contact us any time and will be given the help or service they need.
We aim to further optimise the transfer of knowledge to our growers. This is a key part of the 20 · 20 · 20 project.
Farmers are very satisfied with our sugarbeet.nu website. Together with Growcom, it offers a personal service
Eastern Europe “Our advice significantly increases sugar yields.”
Dr Gerd Jung Senior Vice President Beet Procurement Eastern Europe
A very high percentage of Polish and Slovakian beet growers participated in the first survey – 62 per cent in Poland and 60 per cent in Slovakia. The response was largely positive. The following statements are particularly noteworthy: ● The cultivation advisers actively seek contact with the growers. Whenever farmers requested a consultation, one was quickly arranged. ●
The cultivation advisers are credited with a very good level of expertise which comprises the latest research findings and upto-date information about the sugar market.
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The advice results in significantly increased sugar yields.
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Nordzucker and its cultivation advisers are reliable partners.
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Our regular information events, such as winter meetings, field surveys and telephone advice receive good feedback in every respect.
Potential for improvement was identified in the following areas: intensifying knowledge of the overall operating situation in economic terms, especially as regards other crops, and greater use of the internet. Akzente 02/11
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MARKETS AND CLIENTS
SPOTLIGHT ON THE MARKET
Sugar bottlenecks in Eastern Europe With demand of almost four million tonnes, the European Union is one of the largest net importers of sugar in the world. As a result, just 80 to 85 per cent of consumption in the food sector is covered by sugar produced from beet in the EU. The situation in Eastern
and South-Eastern Europe is particularly strained. In the nine countries which make up Nordzucker’s Eastern Europe division – from Poland to Slovakia and from Hungary to Greece – consumption of 3.7 million tonnes of sugar is offset against quota-based pro-
duction of just 2.6 million tonnes of beet sugar. This means that 30 per cent has to be imported. As the world market prices for sugar clearly exceeded the sugar price within the domestic EU market at times in 2010, we have seen a phenomenon in recent months which those who reformed the sugar market regime in 2006 never anticipated. Insufficient quantities were imported from preferred countries, resulting in a temporary shortage of sugar and sharp price increases in several parts of the domestic market. Media focus on empty sugar shelves The situation came to a head in February 2011. While retail prices for sugar climbed to as much as twice their previous year’s level, empty shelves in the sugar aisles of several supermarkets prompted an outcry in local media. It was a view that we only know from before the fall of the Iron Curtain. “Sugar tourism” was suddenly back in the news. Media in Germany and Austria also ran headlines such as “Eastern Germany – run of customers from Poland, sugar is rationed” or
Delivery in Gdynia of raw cane sugar to be refined in Chełmża.
Rare pictures: empty shelves in the sugar aisles of Polish and Slovakian discount stores. At times, sugar was only sold in small quantities.
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MARKETS AND CLIENTS
“Hungarians hoard sugar in Austria and Slovakia”. However, out of the public eye, small and medium-sized producers of chocolate, cakes, biscuits and lemonade suffered most from the strained supply situation. Safeguarding availability Nordzucker’s prime objective is to safeguard the supply of sugar to customers and, in particular, to contribute its expertise in high-
quality goods, inventory management and needs-based delivery. During this difficult period, Nordzucker did all it could to safeguard the availability of sugar, thereby showing customers they are an active, reliable partner. This included commissioning relevant quotas of raw cane sugar from preferred countries at a significant premium due to the volatility of world markets and actively trading in imports of white sugar. Regional markets
such as Africa and the Balkans determined sugar pricing – something the EU sugar market has never seen before. ■
Dr Volker Diehl Senior Vice President Sales & Marketing Eastern Europe
Taste of the North Nordic Sugar meets Scandinavian demand for locally produced sugar with a difference. A golden colour and mild caramel taste are striking features of Nordic Raw Sugar, a whole new type of sugar extracted from sugar beet. Developed by Nordic Sugar, it satisfies the growing demand of consumers in the Nordic countries for locally produced sugar with a fine subtle flavour profile. “We spent a long time developing this product, together with head chefs, nutritionists and producers interested in foods that are produced locally,” explains Product Manager Kristine Koppelhus. “We are seeing a clear trend in our region towards rediscov-
ering locally produced commodities which are processed to create products with their own special Nordic flair.” From bitter to sweet Nordic Raw Sugar contains three per cent sugar beet juice. This juice gives the sugar its golden colour and its full-bodied flavour. As beet juice normally tastes quite bitter, Nordic Sugar’s development team found a way to conceal the bitter flavour. This is what makes the new sugar taste so good and makes it just as sweet as white sugar.
A Nordic choice “To drive up sales, we started presenting it to industrial clients – concentrating on pioneering customers with a Nordic approach to raw materials and marketing. In this way, we can create a local, customer-oriented awareness corresponding to our offering: an innovative, flavourful product based on regionally produced sugar beet,” says Kristine Koppelhus. “Nordic Raw Sugar also caters to a second trend,” Kristine Koppelhus adds. “We have responded to a general interest in brown sugar products which we identified in both the industry and retail several years ago. Raw sugar products have a positive image and are viewed by our customers as a modern alternative to white sugar. Now we can offer them a Nordic alternative.” The product is initially being launched in the Danish food industry before being rolled out to other regions. ■
Lisa Thorup Internal Communications Nordic Sugar
A taste of the North: the new raw sugar variety is made from local sugar beet and was developed especially for Nordic customers.
Akzente 02/11
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MARKETS AND CLIENTS
Customer focus on sustainable development Farmer Thomas Klarhölter (far left) talks to the visitors about mulch seeding and its positive impact on soil structure and earthworms.
These days, responsible companies are expected to incorporate sustainable development into their strategies. Nordzucker is well on its way to achieving this. Over the past two years, the Sustainable Development department has been ensuring that Nordzucker is seen as a forward-thinking market player, concerned with sustainability. The department has also been maintaining the company’s
strong image in the food industry. It is important to our clients that the whole value chain is geared towards sustainable development, not just their own firm. Just recently, two of Nordzucker’s clients – Unilever and Coca-Cola (Sweden) – showed an interest in this issue, requesting further information and enquiring about a potential partnership in the field of sustainable development.
Unilever visits Nordstemmen: all commodities to be sourced from sustainable farms by 2020 Unilever’s targets include sourcing all agricultural commodities from sustainable farms by 2020. In order to achieve this goal, the company has drafted the Unilever Sustainable Agriculture Code (SAC), which stipulates what Unilever means by sustainable agriculture. This code affects all suppliers of agricultural products to Unilever – both producing farmers and contractual partners who are employed
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at the farms. Unilever expects all its suppliers to commit to the code and constantly improve their performance as regards sustainability. Sugar is one of Unilever’s ten most important commodities. However, the company has limited experience and knowledge of beet farming in Europe. For this reason, Nordzucker invited Unilever to form a partnership. This enabled Unilever to see how
well beet farming complies with the code’s requirements and allowed the company to enhance its knowledge of the sector. Beet farming and sustainability aspects were discussed at a meeting with Unilever in April. This appointment also included a trip to a beet farm near Nordstemmen, where the farmer uses mulch seeding to sow beet.
MARKETS AND CLIENTS
Unilever Sustainable Agriculture Code The visitors were very impressed. An initial basic analysis revealed that only a few changes needed to be made to fulfil the requirements of the code. Nordzucker and Unilever have decided to proceed with the next stage: a gap analysis. This analysis will compare the existing requirements outlined in contracts, guidelines, documents and current certification systems, websites, etc. with the stipulations of the code. There are also plans to visit two or three German farmers to conduct a selfassessment. Following this, all the results will be evaluated and Nordzucker will decide what Birgit Landquist further steps to take. ■
Here are some of the social, economic and ecological indicators laid down in the Unilever Sustainable Agriculture Code: • Soil health: improving soil quality to support plant and animal life
• Water: reducing water loss and water contamination by farming • Social and human capital: ensuring that people can support themselves and keep doing so; improving farmers’ skills, training and self-confidence
• Soil loss: reducing erosion • Nutrients: reducing the loss of nutrients • Crop protection: reducing the use of pesticides • Biodiversity: improving biological diversity • Agricultural sector: improving product quality and yields • Energy: reducing greenhouse gas emissions in farming
Coca-Cola visits Arlöv In May, Coca-Cola Sweden (Coca Cola Enterprises Sverige AB) visited the special sugar factory in the Swedish town of Arlöv. The purpose of the trip was to find out more about how sugar is made and to share knowledge and experience regarding sustainable development in the value chain. After visiting the plant – which supplies liquid sugar to Coca-Cola – the two companies discussed issues including sustainable development. Ideas were exchanged and Coca-Cola Sweden decided to publish a piece about beet farming and sugar production in its next sustainability report as a direct result of the meeting. The discussions are ongoing. ■
Anne Lindfeld (left) and Peter Bodor from Coca-Cola Sweden on railway wagons loaded with liquid sugar for the Coca-Cola factory 600 kilometres north of Arlöv.
Birgit Landquist Sustainable Development
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MARKETS AND CLIENTS
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MARKETS AND CLIENTS
Three and a half times around the world No problem for busy bees with ambrosia and Bifor Germany has some 90,000 beekeepers, whose importance should not be underestimated. With their work, they ensure that around a million colonies of bees do their job, which benefits both people and nature alike. More than 35 billion bees collect the ingredients which go into the honey we eat and ensure that blossoms mature into fruits and berries. Like many other professions, the beekeeping community is facing recruitment problems. However, following a lot of hard work, a greater awareness among new beekeepers of the need to maintain a harmonious natural world is generating a good deal of interest in this buzzing profession – and not just in the countryside. A fascinating glimpse of the complex social fabric within each beehive is enough to arouse anyone's curiosity about this lively insect.
Nectar and honeydew from blossoms form the base of honey. Forager bees take both of these substances into the hive, where they are processed by house bees. They reduce the water content and add special enzymes which cause the substance to ferment. This creates honey, which is stored in combs. The beekeeper opens the combs, extracts the honey using centrifugal force, then filters and bottles it. Now it’s ready to spread on your bread. Honey consists of 40 per cent fructose, 30 per cent glucose (proportions vary depending on the type of honey) and 10 per cent of other sugar types, plus essential vitamins, minerals, and more than 1,000 other substances, such as amino acids, flavourings and enzymes – plus water, of course. The average German eats 1.3 kilos of honey a year. There are more
than 50 types of honey worldwide; 15 are significant for German retailers. Many people are still unaware of the far-reaching importance of bees for a harmonious environment. After cows and pigs, they are the third most important working animals in Germany. The ongoing existence of 80 per cent of indigenous flowering plants relies entirely on pollination by bees. This makes bees irreplaceable as pollinators for flora and crops, and therefore ultimately for the whole food chain. Bees need a wide range of flowers. Beekeeping is a good way to help ensure a rich and varied harvest and therefore makes a crucial contribution towards maintaining Bernd Hoyer the natural world. ■
Keeping bees fit and active Traceability, purity and ease of use generate growing demand for ambrosia and Bifor bee feed. Despite their diminutive size (20 millimetres in length), the statistics on honey bees are impressive. The proverbial busy bee makes up to around 30 flights a day, returning to the hive laden with as much as 60 milligrams of nectar each time. In the course of a bee’s
life, this equates to flying around the world three and a half times or an amazing 140,000 kilometres. As they travel, they collect nectar and honeydew from a total of over 1.5 million flowers. It goes without saying that bees need to be well fed to do their energy-intensive
jobs. But that is not a problem if they are given Nordzucker’s range of ambrosia bee feed or Nordic Sugar’s Bifor products. Both Nordzucker and Nordic Sugar have seen pleasingly sharp growth in sales of these specialist products in recent years. >>
The smaller packs of bee feed paste only need to be opened and put in position – that’s it!
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MARKETS AND CLIENTS
Feeding when blossoms are scarce Bees take care of some of their own nutritional needs while they are doing their rounds by feeding on flowers’ nectar while foraging. However, they need to be fed during the times of year when they cannot find sufficient natural sources of food as beekeepers harvest the stores they set aside for this period in order to make honey. Sugar is the main ingredient in this feed, which consists of (organic) sugar water, bee feed syrup and/or paste.
Amazing facts: • • •
• •
A bee covers a distance of up to 140,000 kilometres in the course of its life. A bee colony consists of approx. 30,000 to 40,000 bees with one queen. A colony supplies about 20 kilos of honey a year; a jar of honey is the life’s work of 350 – 400 bees. During the spring build-up, a queen bee lays up to 3,000 eggs a day. Workers visit a bee larva up to 2,000 times to care for it. The larva is fed to five hundred times its original weight in the first six days.
Flying guests in the liquid sugar factory Nordzucker started making bee feed back in the early 1970s, when uninvited guests – honey bees – sometimes visited the company’s liquid sugar production plant on their foraging rounds. A number of the firm’s special products were obviously to the flying gourmets’ taste. Very soon, ideas, discussions, developments and trials resulting from an intense collaboration between beekeepers, sugar technologists and researchers gave rise to complex feed recipes. Beekeepers also face tough international competition. For this reason, quality and ease of use point the way for all bee feed products. Based on the principle that only high-grade ingredients will result in a high-quality final product, the syrup and paste products from
the ambrosia and Bifor ranges contain reliable, traceable ingredients. The recipes are carefully tailored to the specific nutritional needs of the products’ discerning, high-performance end-users – the bees in the hive. The ingredients’ high level of purity makes the products economical. Microfine crystals and an optimum dry content prevent energy losses and ensure that the feed is easily absorbed. However, this is just one of the reasons why the feed is so easy to digest. Sophisticated, automated production processes safeguard constantly high product quality. Easy-to-use, reliable feed Microbiological stability and simple storage are not the only factors which make the feed user-friendly – it is also supplied in a wide range of container sizes to cater for different needs. Nordzucker and Nordic Sugar distribute these specialist products in all the markets they serve. However, they are currently focussing on Western and Eastern Europe in particular. ■
Bee feed syrup is sold in 12.5-kilo canisters, 14-kilo drums, cubitainers, disposable vats and pallet containers. It can also be delivered loose and pumped into the beekeeper’s own storage system on site. Bee feed paste is available in 15-kilo boxes with a plastic inner liner and in 2.5-kilo single packs.
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Bernd Hoyer Product Manager
COMMUNITY
Young and old alike were impressed by the sugar factory model in action. From right to left: Chief Agricultural Officer Dr Niels Pörksen, Chief Production Officer Axel Aumüller and Dr Ralf Paeschke, Undersecretary of the Lower Saxony Ministry of Agriculture, joined young visitors finding out how the beet ends up at the factory.
An unforgettable experience: the mobile farmyard 15,000 enthusiastic visitors came to experience the mobile farmyard (Erlebnis: Bauernhof mobil). Modern agriculture was at the heart of the event at Braunschweig’s Kohlmarkt. Staged in conjunction with Braunschweig Rural Association (Landvolkverband Braunschweiger Land) and the Association for Sustainable Farming (Fördergemeinschaft Nachhaltige Landwirtschaft; FNL), Nordzucker’s event entitled “Sweetness · Life · Farming” attracted some 15,000 visitors from Braunschweig and the surrounding area to the city’s Kohlmarkt square. From 19 to 21 May 2011, the event featured a mobile farmyard which illustrated various aspects of modern agriculture to visitors and showed them how foods are produced and used. Nursery groups and school classes enjoyed the event, which also attracted consumers who were looking for tips on making preserves or simply wanted to find out more about agricultural activities. Nordzucker brought the event to Braunschweig and ensured that it also focussed on the company along with the production and use of sugar. Project Manager Christian Kionka summarises the purpose of
CEO Hartwig Fuchs opening the evening event at the Kohlmarkt together with Lower Saxony’s Minister for Agriculture Gert Lindemann (right) and Braunschweig’s Mayor Dr Gert Hoffmann (left).
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COMMUNITY
Dr Ralf Paeschke, Undersecretary of the Lower Saxony Ministry of Agriculture (left), presenting the FNL’s mascot – Else the cow – with a hamper containing a selection of Nordzucker’s sweet products.
Dairy cow milking model: not as easy as it looks.
Shake it, twist it, try it: children were keen to get involved on all three days.
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the event as follows: “We want to raise Nordzucker’s profile in Braunschweig and the surrounding area. It is home to a company which generates revenues of almost EUR 2 billion and manages Europe’s second largest sugar group. It is also important to us for consumers – especially children of all ages – to see for themselves how farming works.” He adds: “Many people don’t realise that sugar is grown in our beet farmers’ fields and refined at our plants in Northern Germany and six other European countries.” Visitors to the info stands could admire an impressive model of a sugar factory, find out which products are made from cereals and milk, look at a beet harvester, and see real cows and sheep close up. There was also a stage with an attractive entertainment programme, and the SweetFamily taster tent presented new creations using the 1-2-3 Rote Grütze product, which makes compote easy. Kristina Claußen was also on hand with tips for the jam-making season and advice on the sweet products. Kionka: “There was a wonderful atmosphere, which encouraged visitors to linger and get involved. Our own staff were the best ambassadors for the three aspects of ‘Sweetness · Life · Farming’. They were always keen to answer questions and encourage people to take part. We would also like to thank the FNL, the Rural Association and the Rural Women’s Association. They played a major role in ensuring that the event was a success.” Radio Okerwelle acted as the media partner in Braunschweig, advertising the event in the city and the surrounding area. The mobile farmyard also received hands-on support from the Braunschweig District Rural Women’s Association and the schoolchildren tsd at Johannes-Selenka-Schule. ■
AWARD
Culinary Lower Saxony Marketinggesellschaft der Niedersächsischen Land- und Ernährungswirtschaft (Lower Saxony’s marketing agency for the agricultural and food industry) recently named SweetFamily tea sugar produced by Nordzucker the “Culinary Ambassador for Lower Saxony 2011” in the “Culinary Lower Saxony” competition. The state’s Minister-President, David McAllister, presented prizes to all the products selected on 20 June 2011. This title means that the product can be included in the “Taste of Lower Saxony Hamper”, which the state’s government and many businesses use as a gift. Both the award logo and the title may be used in conjunction with this product. The Marketinggesellschaft agency will mention the selected products in its publication and media work. Christian Kionka
SweetFamily tea sugar is one of the 2011 culinary ambassadors.
PRECISE PLANNING
Chimney at the former sugar factory in Groß Munzel blasted
The Groß Munzel plant processed its last sugar beet in 2006 after operating for 127 years. In early April 2011, the demolition work reached another highly symbolic milestone: the blasting of the 50-metre chimney, which was visible for miles around. It took just
moments for the giant to collapse. Specialists had planned the demolition precisely. The last remaining foundations are now due to be removed by the end of the year. tsd
23 companies in Braunschweig make a stand against far-right groups 23 Braunschweig companies – including Nordzucker – ran a joint campaign supporting respect, tolerance and cultural diversity in order to make a stand against a demonstration by right-wing radicals which took place on 4 June 2011. The initiative was launched spontaneously by the VW plant in Braunschweig and quickly attracted a great deal of support. For around four weeks, the companies’ logos and their mes-
Quelle: Volkswagen
MOBILE MESSAGE
sage supporting a liberal-minded Braunschweig were visible on a tram and two buses serving the city. tsd
SHOP OFFER
New in the SweetFamily online shop
TOP TIP
A practical kitchen aid for the jam-making season. This stainless steel funnel makes it easy to bottle jam or other foods. It has heatproof plastic handles and is dishwasher-safe.
... that you can keep herbs fresh for longer in sugar water if you can't use them straight away?
Did you know …?
Order one for just EUR 7.50 plus shipping in the Shop/Kitchen aids section of our website, www.sweet-family.de. The shop also has other utensils to help you make jams and preserves!
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Strawberry and raspberry compote with ginger
Ingredients for four portions: 400 g 350 g 180 g 1 tsp
of of of of
raspberries strawberries SweetFamily 1-2-3 Rote Grütze fresh ginger, finely diced
Instructions If using fresh fruit, wash it and remove the stalks. Alternatively, defrost frozen fruit. Mix the strawberries and raspberries together. Put 400 g of the fruit mixture in a tall blender jar with SweetFamily 1-2-3 Rote Grütze and liquidise for 15 seconds until finely puréed. Then fold in the remaining 350 g of whole fruit and the finely diced ginger. Leave for 15 minutes, stir carefully and serve immediately.
Preparation time: 15 minutes