Akzente 3 2014

Akzente News from Nordzucker | Issue 3 | December 2014

Nordzucker in competition Keeping pace with the market

Sugar beet campaign

Revenues and earnings

Markets under pressure

Early start – perfect campaign Page 16

Review of the first half of the year; falling prices are having an impact Page 8

Interview with Mats Liljestam Page 20

108

sugar plants produced sugar from beet in the EU in the marketing year 2012/13.

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| EDITORIAL |

“While almost three years remain until the expiration of the quota system in the autumn of 2017, even now we – and the entire sugar industry – are up against some serious ­challenges.”

Dear shareholders, Dear readers, Nordzucker is set for change, as the environment in which we operate is undergoing dramatic transformations. Competition for market shares has substantially increased over the past few months, sugar prices have fallen significantly and in the first half of the financial year our revenues and earnings declined. While almost three years remain until the expiration of the quota system in the autumn of 2017, even now we – and the entire sugar industry – are up against some serious c­ hallenges.

Nordzucker will change and adapt to this new situation. Only in doing so will we remain successful in the future. We have forged ahead with Nordzucker’s transformation over the past few years – not least through our strategy of internationalisation to become a major European sugar producer. We have skilfully utilised the resulting synergies. The goal is now to become even more efficient, leaner and more flexible. We must see ourselves as a company which operates in a market and is ready to face the competition at every level.

It is already clear that our revenues and earnings will once again fall considerably in 2015/16. However, we are of course well-prepared for this – our equity remains high and we have virtually eliminated our debt. We are extremely well-positioned from a technical point of view, thanks to the investments we have made. We are confident that we will continue to develop successfully, provided that we make use of the opportunities offered by the market. In the meantime, please lend us your support for the period which lies ahead of us.

I wish you all a very pleasant Christmas.

Yours,

Hartwig Fuchs

Akzente December 2014

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| CONTENTS |

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Report: The customer is the top priority at the Nordzucker Service Centre. Find out how sugar reaches the customer.

PANORAMA

A LOOK AT THE MARKET

6 Title – Hartwig Fuchs: keeping pace with the

20 Markets under pressure – a focus on the benefits for

8 Falling prices are having an impact – interview

22 Price support, marketing quotas and import tariffs –

competition

with Dr Michael Noth

10 Nordzucker logistics: Working magic with customers 12 Sugar purchasing – credibility is the be-all and end-all

14 The raw material market – Dr Lars Gorissen on the challenges and outlook beyond 2017

15 20 · 20 · 20: Sustainability and innovations in beet cultivation

16 Campaign 2014: early start – perfect campaign 18 Handling the transfer of knowledge and

expertise – interview with Axel Aumüller

19 Uelzen: Silo 9 will remain in place

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Around the beet: Falling sugar prices affect raw material purchasing. Find out what this means for the beet market.

the customer. Interview with Mats Liljestam

sugar market regulation the American way

CLOSE-UP

24 “Service is our philosophy” – the Service Centre at our Uelzen plant

26 Bread from the Arctic Circle – a visit to Polarbröd in Sweden

SWEET STORIES

28 Baking for festive celebrations 29 Brown sugar – do you know the difference?

Baking for festive celebrations: Kitchens are busy as Christmas approaches. Recipe ideas from SweetFamily and Dansukker.

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People at Nordzucker: Jaroslav Michal is a mechanical engineer in the Trenčianska Teplá plant. He has worked in the sugar industry since 1987.

Cover picture IN BRIEF

30

Company news

PEOPLE AT NORDZUCKER

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Jaroslav Michal from Trenčianska Teplá.

CLICKED ON

35 A look online RECIPE

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Festive marble biscuits

The price of sugar has fallen sharply over the past few months. This is due to the rise in global production and the resulting surplus of sugar. Moreover, competition for market shares has significantly increased in recent months. Nordzucker is adjusting to the market and to its customers’ requirements. A look inside the Chełmża Service Centre.

Akzente December 2014

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| PANORAMA |

Keeping pace with the competition Defining a new direction for our philosophy and our activities The sugar market in the EU has acquired a new rhythm: momentum, price pressure and competition are shaping business. It is all about market shares and competitive advantages and, in the end, who is able to stay the course. The sugar world has changed.

Hartwig Fuchs describes how the company intends to keep up:

“For a good many decades, the sugar market in the EU was strongly regulated by quotas and minimum beet prices.

Since the most recent reform of the sugar market regime, a political objective has been to open up the European market for imports – with domestic production only covering 85 per cent of the required volume for human consumption. Over6

production of quota sugar was impossible by definition – prices were relatively stable and somewhat decoupled from the global market price. But for a few years now we have been more keenly experiencing the price fluctuations on the world market. This enabled us to benefit from high prices over the past few years, when sugar production was unable to keep up with rising global consumption. Yet, global prices of sugar have now significantly dropped due to strongly increased production capacities, while at the same time the European market will be liberalised in 2017/18.

This is prompting additional pressure and considerable unrest on the market.

The time to act is now. We must face the new challenges and reorganise Nordzucker: the goal is to provide the

company with new, leaner and more flexible structures which are able to adjust to market circumstances and to shape processes so that the information and signals which we receive from the market and from our customers trigger the necessary measures and innovations.

The right product, price and service mix for our customers must always be the top priority.

However, it is not just our sales market which is changing. The framework conditions for beet cultivation are also evolving. We must continue to tie good cultivation areas to our plants, while at the same time achieving closer integration of the two. Our owners and beet farmers require planning certainty regarding the framework conditions for joint production of sugar beyond 2017.

From beet to sugar: The market shapes the bus iness.

Nordzucker is preparing for a new market situation. The goa l is to ­become faster, leaner and more flexible.

How is Nordzucker responding to the competitive environment?

The Executive Board informs 180 specialists and managers.

Nordzucker intends to further develop its competitive, locally oriented sugar business.

In future, we intend to offer our farmers various flexible and fixed short-term and long-term contract models, to guarantee planning certainty for our customers’ supplies while also ensuring the necessary degree of flexibility. In future, the market will determine how much sugar is produced, and at which plants – we therefore need to orientate ourselves to the market.

Our goal must be to adopt an entrepreneurial philosophy in every business segment, to act with cost awareness and to consistently focus on the market. After 2017/18 there will no longer be any minimum beet prices, but nor will any export restrictions apply.

This means that our sugar production must be competitive on the global market – while at the same time we strive to be a reliable partner for our customers. There is no doubt that it will be something of a challenge to achieve all of this.

Nordzucker is a European company which has regional roots but is also internationally focused. 2017 is already with us – prices in the EU have fallen dramatically, much more strongly than first envisaged. We must respond to this immediately by cutting costs, establishing leaner structures and rethinking old habits. We must become more efficient.

We have no time to lose in looking back – the challenges and competition lie ahead of us, including the opportunities which the current situation offers us: to position ourselves as a new Nordzucker and to convince our customers of our strength and our product.

Only in this way will we be able to play a role in shaping the EU’s sugar market of the future. We require genuine entrepreneurship which proactively and innovatively encompasses the areas where we need to change and where we are still too slow and too expensive.

And this is true across the company. The goal is to keep up with the competition and to establish a solid position for ourselves, since there will be a further wave of consolidation within the EU. We must face the competition and the challenges that go with it.

We are on a strong path, since we have virtually eliminated our debt over the past few years and have hugely strengthened our equity position. But we are also aware that we have hard times ahead of us in which we will have to live off our reserves. This will be the period in which other competitors drop out. We will make use of this price situation in order to do our homework. And we will emerge even stronger from this phase, so as to utilise all of the opportunities which the market offers from 2017.” �

Akzente December 2014

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| PANORAMA |

Falling prices are making an impact Nordzucker ends the first half of the year with falling revenues and earnings

“Price pressure on the market is significant; prices for quota and non-quota sugar are ­continuing to fall.”

Dr Michael Noth, Chief Financial Officer

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In the first six months of the 2014/2015 financial year, the Nordzucker Group generated revenues of EUR 975.4 million. This significant decline in revenues is due to considerably lower prices and reduced sales volumes. In particular, the lower prices for quota and non-quota sugar meant that net income for the period fell from EUR 184.6 million to EUR 53.1 million.

“2014/15 will be a difficult year for us,” says Nordzucker’s CFO Dr Michael Noth. “There is significant price pressure on the market; prices for quota and non-quota sugar are continuing to fall from one quarter to the next. There are no other earnings components which might make up for this drop-off in prices.” The high stocks of sugar in Europe and across the world as well as the low prices on the world market are having a strong impact on the E ­ uropean market. At the same time, competition for market shares in Europe is tightening ahead of the expiration of sugar quotas in 2017.

The low prices are clearly affecting earnings.

“Unfortunately, the price trend will not only affect 2014/15 but also and even more so the following year, 2015/16. The effects of the contracts which we have now signed will only make themselves felt in 2015/16, and revenues and earnings will continue to decline in 2015/16. Nevertheless, we are expecting the global and European sugar markets to recover again in the medium term. For our new contracts, the market has probably bottomed out now. We assume that the volume of supply will decline in the medium term, due to the weak price level in several countries. As demand continues to rise, this will eventually lead to an increase in prices once more. But we need to get through a tough period, and we are aware that this will entail cutbacks and further savings,” Noth continues.

“Unfortunately, the price trend will not only affect 2014/15 but also and even more so the following year, 2015/16. The effects of the contracts which we have now signed will only become fully apparent in 2015/16.”

Dr Michael Noth, Chief Financial Officer

Over the past few months and years, with the successful completion of our Profitability plus efficiency programme and having realigned our organisational structures and business processes, ­Nordzucker has implemented important measures in order to prepare for a future without the quota system. “However, we cannot rest on our laurels. With the difficult earnings situation looming, we need to continue to work on improving

our competitiveness,” says Noth. “We must face the challenges posed by the market – so that we are aligned with the needs of the market and those of our customers – whilst also continuing to work on improving efficiency and productivity in our company. Following many highly successful years for shareholders and farmers, we must now rise to the impending challenges together.

Thanks to a solid financial policy, over

the past few years we have significantly increased our equity position and reduced our level of debt. Nonetheless, we must continue to work hard at maintaining and expanding our solid position in this market environment. If we are successful here, our business will remain successful in future and we will actively shape the impending wave of market consolidation.” � bdl

Business performance continues to decline in the second quarter Consolidated Revenues

Consolidated EBIT

in EUR m

in EUR m

1,223 975

Consolidated net income for the period

Consolidated Net debt

in EUR m

in EUR m

Group equity ratio Percent

InteRIm RepoRt

229

financial yeaR 2014/2015 6 months / 1 maRCh to 31 augus t 2014

185 67 68

6 month 6 month 2013/2014 2014/2015

6 month 6 month 2013/2014 2014/2015

68

53

6 month 6 month 2013/2014 2014/2015

31/8/2013 31/8/2014

-104 -205 6 month 6 month 2013/2014 2014/2015

Overall, the second quarter has been characterised by falling revenues, marking a continuation of the trend that has shaped the past few months. You will find the full interim report in our Download Centre at www.nordzucker.de

Akzente December 2014

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| PANORAMA |

Whether loose or packaged, Nordzucker delivers just in time and thus helps its customers to keep their storage areas small.

Nordzucker offers its customers tailored logistics packages.

Working magic with customers A cut above the competition with logistics services “Our logistics experts are exceptional communicators and customer service is part of their very soul. They are also clear-thinking analysts and know all the Nordzucker processes by heart. Whenever they make a decision, they do it with a clear overview of the whole situation.”

Hans-Kristian Kristensen, Vice President Logistics

When everything goes to plan, logistics services should be barely noticeable.

While beet farmers and sugar plants can regularly show off their measurable and obvious successes, Nordzucker’s logistics team tends to play a more subtle role. Its product is to oil the wheels of the value chain in order to keep things moving. The results are customised, perfectly timed deliveries – the key to satisfied customers in Europe and beyond.

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A water taxi slowly passes the quay wall along Copenhagen’s Langebrogade street.

Nordzucker’s Logistics Manager HansKristian Kristensen looks out of his office window at the ship that is travelling towards Øresund. “Our objective? Happy Nordzucker customers!” He’s only satisfied “when the right quantity of the right product arrives at the right place at the right time and in the right quality.” The qualified mechanical engineer, specialised in robotics and trained in management, has been working for the sugar industry since the mid-1990s. After working in Finland as a Project Manager at the refinery in Kantvik and as a Production Manager at the Nykøbing plant, he now configures the flow of sugar and animal feed for Nordzucker’s customers in line with their wishes.

Upholding the law His team is divided into five units. His 82 colleagues put together tailored logis-

tics packages for every contract made with Nordzucker customers. The import/ export unit ensures that all Nordzucker deliveries comply with commercial regulations and provides all the necessary documentation. However, a complex catalogue of EU market regulation conditions that apply specifically to sugar must also be honoured. Certain deliveries, for example, require a PAD (proof of arrival at destination); a detailed piece of documentation.

Enabling just-in-time deliveries in Europe The purchasers in Kristensen’s team ­ensure the necessary transport and storage capacities for just-in-time deliveries across Europe. Long-term contracts are made with warehouses, HGV, rail, bulk carriers and container lines, that are certified to transport animal feed or human foodstuffs.

Palletising robots boost efficiency – in this case, at our Opalenica plant.

Product safety: loading of foods is subject to strict requirements.

Producing according to demand “We logistics specialists are always a step or two ahead of the physical product in our minds,” smiles Kristensen. “In terms of order processing, we link market expectations and sales forecasts from external sales with the volume planning from beet procurement and production. It’s a real challenge,” he says. “The result is a market and customer-oriented production schedule. This means we organise operations with a view to our customers – where we can produce and store what, and from where we can serve which customers best. And of course which internal transfers need to be done first because not all of our plants manufacture every one of our products.”

Presence at gateways to the market “Our customers set great store by having a local, personal contact,” emphasises Kristensen. This is provided by the customer service teams – small, dedicated country teams with whom Nordzucker manages the key market interfaces and makes it easier for customers to clarify any issues regarding their deliveries.

Nordzucker customers order over 700 new deliveries here every day. The colleagues in the logistic teams take over responsibility once the customer and the Nordzucker sales team are in agreement. Contract details such as prices, specifications, quantities, delivery deadlines, storage locations and destinations are entered into the central ERP system by the country offices, Kristensen explains. “This means everyone has access to the same information. Whether it’s booking freight, informing plants, warehouses or customers – these steps can then be processed automatically.”

Continually adjusting processes The team also includes specialists in ­system maintenance who continually ­adjust the Nordzucker supply chains in line with changing market and customer requirements. “Standardising work processes further” is another task Kristensen wants to complete in order to further simplify and automate the logistics process at Nordzucker. “After all, we make a living from forward thinking,” he states. � sdp

Mammoth task: product logistics

Nordzucker sells around 20 per cent of its sugar via retail.

The Nordzucker logistics team works at locations all over Europe. 82 colleagues plan, organise and manage warehousing, transportation and customer service for the entire production process. In addition to the animal feed, this also involves overseeing the stevia products from Nordzucker subsidiary NP-Sweet, as well as Fibrex – the gluten-free baking ingredient made from sugar beet fibres – and naturally, the key player: sugar! More than 250 different sugar products and even more specifications tailored to individual customers therefore find their ways to food processors and retailers via cost-efficient routes. Around 2.5 million tonnes of sugar products are stored and transported by Nordzucker in accordance with market requirements and ­customer orders every single year. � sdp

Akzente December 2014

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| PANORAMA | Modern methods: sugar beet is harvested mechanically.

Sugar plant in the province of São Paulo in Brazil

Credibility is the be-all and end-all Nordzucker relies on clear standards and transparent processes for its international sugar purchases “We see ourselves as a first-class, sustainable sugar company. That’s why we want to know as much as possible about the cane sugar plants we buy our raw cane sugar from,” says Iver Drabæk, Head of Sustainability, describing the purchasing process at Nordzucker.

“In this context, raw sugar purchasing must follow our guidelines, the Code of ­Conduct and the Supplier Code of ­Conduct,” says Drabæk.

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Responsibility required Sugar plants, in South America or Africa for instance, generally deliver the sugar they produce to large wholesale warehouses at the nearest port. From there, raw sugar is transported by ship to Nord­zucker and subsequently refined at Chełmża, Poland, or Porkkala, Finland, before being resold. “Our key accounts in particular have staked their reputations on acting responsibly and by 2020

to only process raw materials that have been produced in line with defined sustainability standards.”

“Of course, our customers ask us very detailed questions about where the sugar which we produce and sell comes from, how it is grown and how it is processed. Because at the end of the day, we are responsible for our products. That is why we see it as our responsibility to review processes at our own plants and

those of our suppliers, to ensure that our standards and those of our customers are complied with.” For Marion Schaefer, Head of Quality Assurance, this path entails regular audits and sampling: “Once we start making repeated purchases from a cane sugar producer, we audit its plants according to a fixed schedule and defined standards and frequently also with the help of an experienced consultant who is familiar with the local situation and applicable legislation and who speaks the language. We help our suppliers to improve by explaining our own targets and telling them what is important for us,” explains the quality manager.

A multifaceted auditing process The audits look at the entire chain, from the growers through to production and transportation. “Of course this sometimes involves other issues than those that might occur in Europe. The issue of social standards, for instance, naturally has a different status in the least developed countries (LDC) as Nordzucker rejects all forms of forced labour and demands compliance with international human

At the port of Gdynia: a ship loaded with raw sugar.

rights conventions, e.g. in relation to child labour. We audit these standards and address any failings or potential for improvement.” Key issues also include the environment and human rights, ­labour law and the quality of cultivation methods, production and transport. An audit of farmers, plants and the port ­often takes four days. At the end of an audit, the results are defined in a report and corrective measures are documented.

Suppliers are obliged to implement these measures and to report back on them.

If necessary, compliance is reviewed by means of follow-up audits. If no measures have been implemented or the changes are insufficient, Nordzucker will no longer purchase goods from these suppliers.

“We take our customers’ aim of sourcing all raw materials from sustainable production by 2020 very seriously and also see that developments are progressing. It is important for us to support our customers’ efforts and to advance major initiatives such as SAI (July edition of Akzente, page 12) and to promote standards such as Bonsucro,” emphasises Iver Drabæk. � tsd

The harvested sugar beet awaits processing.

Why are imports ­n ecessary?

Within the scope of the 2006 reform, the EU reduced overall production quotas for sugar for use in food by approximately 6 million tonnes, some 30 per cent of the volume of quota production.

The EU has thus gone from being a net exporter to one of the largest net importers of sugar on the world market.

This means that the EU is now only able to meet 85 per cent of its own demand.

To ensure a continuing supply of a sufficient volume of sugar for the common European market, the EU agreed to increase sugar imports from developing countries.

In July 2004, the then EU commissioner for agriculture, Franz Fischler, justified this step on the grounds that the sugar sector in the EU and the developing country would gain “a realistic outlook through this reform” (see Akzente July 2004, p. 13ff.). In the commissioner’s view, the increase in sugar imports thus served to boost competitiveness in the EU’s sugar sector and to facilitate market access for the developing countries.

In this context, in the financial year 2013/14 to date, the EU has imported a good 3.5 million tonnes of sugar in ­total. �

Alexander Sick

Code of Conduct The Code of Conduct is applicable to all employees at Nordzucker AG and all of the companies in the Nordzucker Group. It is based on the four corporate values of responsibility, courage, appreciation and dedication. The rules of conduct formulated in this code cover the three areas of corporate integrity, people and the company’s role in society. The Supplier Code of Conduct is based on Nordzucker’s Code of Conduct. As part of its strategy of sustainability, Nordzucker has undertaken to maintain partnerships with suppliers.

Akzente December 2014

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| PANORAMA |

Professionally ­managing the raw material market

The sugar market in the EU is under strong pressure; the framework conditions are to change from 2017. This also affects beet procurement. Dr Lars Gorissen explains the challenges and perspectives that lie ahead after 2017 “Nordzucker is currently strongly affected by falling sugar prices and by challenging negotiations with our customers.

One factor behind this is the surplus in the EU which is attributable to the conversion of non-quota sugar to quota sugar and to additional imports into the EU. We are also experiencing the first effects of the expiration of the quota system in 2017.

The changing market environment shows that Nordzucker must become more flexible, with an enhanced market and customer focus. This means not only adopting a stronger customer and sugar market-based perspective, but also a stronger understanding of the beet market as a market, and adjusting to the new situation so that both Nordzucker and our beet farmers can continue to operate in an attractive environment.

Our advantages on the sugar market include local production, short transport routes and high sustainability standards. This carries weight with our customers. But as I said, the sugar market is undergoing a period of change. Together with our beet farmers, we intend to ensure that beet cultivation remains attractive in a transformed and more volatile market, even without a quota and without a fixed minimum beet price.

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The beet market involves competition for the farmer’s land under cultivation. In the long term, the crops which bring rewards will be cultivated. The price of beet therefore hinges not only on the price of sugar, but is even more dependent on the prices of alternative crops. We are therefore working on models for our contractual relationships with our farmers so as to offer an adequate level of planning certainty in terms of the contribution margins for possible alternative crops and to ensure that the farmers can benefit from success on the sugar market. From 2017, we may have various contract models. Our farmers will be able to select from these in line with their personal level of risk-taking propensity. In this way, we want to offer our farmers greater decision-making opportunities. In peripheral regions, we may also face a challenge from our competitors in relation to beet. We must be able to react to this.

A core part of our philosophy is that our beet farmers are our partners. A beet farmer is irreplaceable. They are no ordinary supplier. Direct contact with the farmers via the beet offices in our plants and local cultivation advisers remains very important to us and will become even more critical in future.“ �

Competitive in the field The sugar market is changing even now with the looming expiration of the quota system in 2017. Just as in a chain reaction, this ultimately impacts on beet cultivation. Sustainability and higher yields for beet cultivation play an increasingly important role. The following section provides an overview:

Sustainability:

A continuing focus on innovations:

Our beet farmers already fulfil stringent requirements in terms of sustainability. Comprehensive advice and legal requirements ensure responsible use of resources for crop protection as well as ­fertilisation and soil preservation. Our 20 · 20 · 20 programme for increased yields from beet cultivation is a good example of how we can achieve further sustainability improvements in the area of cultivation. Increased cultivation efficiency will automatically lead to improved use of resources and safeguard the profitability of beet cultivation.

Our customers are increasingly interested in sustainable production techniques in agriculture.

This means that we are increasingly required to demonstrate the sustainability of our beet culti­ vation, which entails us documenting this with numbers and facts. The future challenges therefore do not relate to changes in beet cultivation.

The aim is primarily to make sustainability at ­Nordzucker transparent, throughout the entire value chain from the farmer to the customer. �

For research into new methods, trials generally ­involve three different levels at our company. First of all, the employees in our beet offices carry out initial trials. ARGE NORD is subsequently involved for intensive testing in precision trials and to determine the practical benefits of these new methods.

We have increased the personnel resources of ARGE NORD in order to step up the volume of these trials. The Institute of Sugar Beet Research in Göttingen carries out scientific assessments for a variety of topics. For example, it is currently investigating the precise effects of the equal-space narrow-row method and the interactions resulting from nematode reduction by means of catch crops and various beet varieties.

One of the key advantages of beet cultivation is the role played by sugar beet in crop rotation. It is therefore important that our cultivation advisers communicate which crop types are suitable for crop rotation and which are not. In particular, we are studying maize, whose cultivation as part of a crop rotation with beet causes problems. Research projects on the issue of crop rotation are therefore very important for us. � bdl

bdl

ARGE NORD ARGE NORD is German interest group which stands for Arbeitsge­ meinschaft zur För­ derung des Zucker­ rübenanbaus in Nord­ deutschland e.V. This interest group carries out a large number of field tests in Northern German sugar beet growing areas. For example, these tests cover the equal-space narrow-row method or herbicide tests.

Nordzucker AG and eight sugar beet farm­ ers’ associations in Schleswig-Holstein, Lower Saxony, Meck­ lenburg-Western ­Pomerania and SaxonyAnhalt are members of ARGE NORD.

Modern technology and competent local advice.

Akzente December 2014

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| PANORAMA |

Early sowing has produced a record harvest for almost the entire Group.

Nordzucker’s plants will operate continuously until January: view of the centrifuges at the Opalenica plant.

2014 campaign: Early start – perfect campaign Nordzucker set to break records The pleasant autumn weather meant that the beet harvest and campaign were able to start on time in Nordzucker’s growing regions. After three good to very good harvests, many of Nordzucker’s growing regions are expecting yields that will break all previous records. The 2014 harvest will keep most of Nordzucker’s 13 plants working hard well into January 2015. Enthusiasm regarding the excellent progress made in terms of yield remained muted, however, in light of persistently low sugar prices. .

All of the beet has been harvested in Northern Germany.

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An excellent year for sugar beet “Regarding the weather, 2014 was one of the best years we’ve seen for sugar beet,” says Nordzucker’s new Head Cultivation ­Advisor, Dr Gerd Jung, who has been heading the newly established Grower Relations and Agri Consulting department since the start of November. “Scandinavia, Germany, Poland and Slo­ vakia all had plenty of sunshine and sufficient rainfall was recorded almost everywhere at the right time; from the early compact sowing to the straightforward harvest. Only the cultivation areas around the Polish Chełmża plant experienced longer summer droughts, which affected beet growth. With a Group-wide average sugar content of around 18 per cent and average beet yield of 76 tonnes per hectare, Jung recorded sugar yields of over 13 tonnes per hectare for all beet supplied by the end of October.

Focussing on high output Almost all Nordzucker plants had an excellent start to the campaign and were quickly running at full output. The start-up phase took a little longer at the Danish Nakskov plant. The production managers unanimously declared excellent juice quality, clean beet and very good sugar yields for all 13 Nordzucker plants.

“We achieved a stable, high level of processing very early on,” confirms production manager Dr Michael Gauß, Senior Vice President Production Central Europe. “The first few weeks of the campaign went extremely well for all five plants in North Germany,” he says, praising the excellent groundwork by his teams and the exceptional quality of the beet. With a view to the fantastic harvest, Nordzucker Germany primarily invested in compensating and supplementary measures. The repairs to silo 8 at the Uelzen plant were also completed quickly. This means that one of the two large silos at Uelzen is now completely back in use for the current campaign following the fire in June. Silo 9 will be fully operational again in time for the upcoming campaign.

Testing innovative technology in Örtofta In Northern Europe, Nordzucker has continued to invest heavily in energy efficiency and the ongoing optimisation of product quality, Jesper Thomassen, Senior Vice President

Säkylä

Porkkala

Örtofta

Around 80 per cent of the sugar produced at Nordzucker is delivered to ­customers in the food industry. Retailers receive the rest.

Kėdainiai Nakskov

Nykøbing

Arlöv

Uelzen Klein Wanzleben Chełmża Nordstemmen

Production Northern Europe, reports. Around EUR 20 million was invested in the Swedish Örtofta plant alone, where the new evaporation dryer (ED) and a vertical crystallisation tower (VCT) went into operation at the start of the season. The new technology will permanently reduce energy consumption and CO2 emissions in Örtofta by almost one third, which corresponds to 150 gigawatt-hours and 32,000 tonnes of CO2.

“It takes time for systems like these to achieve full output,” explains Thomassen. He is optimistic that this will occur in the campaign currently under way. Thomassen estimates a campaign duration of around 125 days for the Lithuanian and Danish plants, around 140 days for the Swedish plant and with the Finnish plant in operation until mid-December.

Joachim Rüger, Senior Vice President Production Eastern Europe, is also extremely happy with the start to the campaign in Poland and Slovakia. “After the harvest and beet deliveries around Trenčianska Teplá ­began grinding to a halt after several days of heavy rain, all three plants are now operating at full output.” A new decanter for juice purification at the Opalenica plant, the energy-­efficient extension of the evaporation plant and the new wastewater treatment plant in Chełmża are all a­ lready showing very positive effects. Rüger expects a 130-day campaign for the Trenčianska Teplá plant. The Polish plants will likely r­ emain in production until around 10 January.

Schladen Clauen

Opalenica

Trenčianska Teplá

Nordzucker produces ­sugar in seven European countries.

While the harvest starting in mid-November is now almost complete, most Nordzucker plants still have the second half of the campaign ahead of them. “We’re now focussing on maintaining the high processing output across all plants until the end of January,” Gauß emphasises. “A 140-day campaign is an enormous challenge to all those involved,” he says, referring to the restrictions on driving HGVs at weekends in Germany.

From 2014, there are no exceptions made for beet deliveries, which tests the flexibility of the plants when it comes to supplying raw materials. � sdp

Akzente December 2014

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| PANORAMA |

Handling the transfer of ­k nowledge and expertise Nordzucker is preparing to hand things over to the next generation

have been frequently unable to hire them on a permanent basis.

Which measures are you taking to ensure the transfer of the knowledge and experience of older employees to younger members of staff?

First of all, we have a finely honed system of succession planning. We know precisely when each of our employees is to retire, which qualifications they have and we prepare a successor in good time. For this purpose, we meet at the plant once a year and cover every division together with the plant’s management and the HR department.

We also invest a lot in our young talent. We have highly dedicated training supervisors at all of our plants. Besides technical expertise, they also teach young people a lot about what it is like to work in the sugar industry – such as the details of the campaign and the maintenance phase.

Many Nordzucker plants have an uneven age structure within their workforce. A disproportionately large number of our colleagues will be enjoying their wellearned retirement in a relatively short period of time. Akzente talked with Axel Aumüller about the process of passing on expertise, training and the particular issues associated with working at a sugar plant.

Mr Aumüller, why are there so many employees at so many plants who are due to reach retirement age simultaneously in a few years’ time?

18

This simply reflects the fact that following the closure of plants due to the sugar market reform in 2006, we offered all of the affected employees under the age of 55 a job at another plant, which many of them accepted. This meant, however, that we tended to hire middle-age employees from other plants so that no young personnel were recruited or permanently taken on. We still stand by our decision to offer our employees these opportunities at the time. But, as I already noted, it does mean that our age structure is unbalanced. Nonetheless, we have of course provided training for young people, but

The lack of specialists and the process of demographic change are increasingly important. Are you already ­noticing the effects of this in your ­efforts to recruit well-trained employees for the plants?

Not all that much, luckily. We are wellknown as an attractive employer in the regions where our plants are situated.

We always have a large number of applicants for apprenticeships and vacancies.

Nonetheless, it goes without saying that you cannot simply replace 30 or more years of experience in the sugar indus-

try with new young employees. We aim to ensure that the process of transition is as smooth as possible.

A successful campaign requires dedicated personnel. The atmosphere at a plant during the campaign is very special. Can you describe it?

Working at a sugar plant is more than just a profession – it is a vocation. The employees at our plants are highly dedicated. For the majority of them, it is not just a job. They frequently have a strong

bond with the company which goes beyond the norm. For instance, you don’t simply go home if the plant has ground to a halt and you’re needed – that sort of thing is more or less self-explanatory.

That’s why working in the sugar industry is so exciting, because it never gets boring. There are always new technical chal-

lenges to learn from. Our people want to ensure that everything works the best it possibly can. This commitment to the plant is supported by an extraordinary sense of shared identity. This motivates our employees and helps them to cope with tough challenges. �

Interview conducted by Bianca Deppe-Leickel

To ensure that no knowledge is lost, Nordzucker manages the transfer of expertise.

Uelzen: silo 9 will remain in place The Uelzen plant can breathe a sigh of relief. A good four months after the fire at silo 9, it has now been confirmed that the shell of the silo can be repaired. It is hoped that the silo will therefore be ready for use again by the next campaign.

The emptying of the silo was completed at the end of October. Static tests carried out directly on the silo’s shell then provided the hoped-for all-clear. The next steps to get the silo up and running again are already underway: the renewal of the ring beam at the upper end of the silo should hopefully make it possible to replace the roof before winter sets in.

“We are trying to take advantage of the good weather conditions as much as possible in order to make quick progress

with the sealing. As soon as the roof has been put back on to the silo, we can start repairing the internal walls. Only once this has been completed can the conveyor technology and a new belt bridge be ­fitted,” said the manager in charge of the project, Dr Thomas Mörle-Heynisch, outlining the next milestones. In the meantime, experts from our insurer and the criminal investigation department are ­investigating the causes of the fire. They have not yet released their findings.

After repairs to the roof, the adjacent silo 8 could be filled with sugar from the current campaign starting back at the beginning of October. The remainder of the work on the roof is having no impact on operations. “Work on silo 8 has been completed on time. This has only been

possible thanks to the cooperation of our suppliers, to whom we would like to express our sincerest gratitude and appreciation,” Dr Mörle-Heynisch continued. �

tsd

Work on the ring beam proceeds promptly.

Akzente December 2014

19

| A LOOK AT THE MARKET |

What does the customer need? This is a key issue for Nordzucker.

“We must be prepared to exploit the opportunities resulting from the opening-up of the market.”

Markets under pressure – focus on the benefits for the customer Mats Liljestam on the current market situation and the need for change Prices on the world market are currently very low. What is the outlook?

Prices are shaped by supply and demand. This means that the volume of supply will fall following a low-price phase and that demand will rise, triggering higher prices. The only difficulty is in predicting when the tide will turn, and the extent of this trend. Moreover, prices are also influenced by several factors such as the effects of the weather which are very hard to predict and cannot be planned for.

20

The current sugar market regime will expire in 2017. Is this already having an impact on the sugar market?

sufficient number of customers on the world market who will purchase non-quota sugar at acceptable prices?

Yes, very much so. At the moment, the low price of sugar in our EU markets is predominately being shaped by a surplus – which also reflects high import volumes.

But at the same time – and this is a sign of things to come in 2017 – competition has also significantly increased.

The WTO export limit will continue until 2017. This means that exports are only possible to a very limited extent. We are therefore lobbying the European Commission to approve the necessary export tranches ahead of schedule.

We also expect the European Commission not to permit any additional imports – above and beyond existing free trade agreements – and not exacer-

It looks like the 2014/15 beet harvest will break all records. Is there a

A surplus plus imports triggers price pressure.

Products, services and the price have to be right for the customer.

bate the situation on the market even further.

Will Nordzucker’s market share get smaller?

We do not believe that it will, at least not in the long term. It is our express goal to expand our market share in the EU after 2017.

What is your view of exchange ­trading of sugar after 2017?

After 2017, we are fairly likely to see price models which are based on internationally quoted prices such as London

No. 5 and New York No. 11. This naturally requires active trading to ensure compliance with applicable obligations.

It will also necessitate changes in pricing mechanisms in the value chain, including the supply chain. However, I am not sure whether there will be sufficient liquidity for a future within the EU. In my view, hedging opportunities via the world market are more likely.

Nordzucker has committed itself to improving its market and customer focus. Why is this important?

The market will inevitably change as a result of the expiration of the quota system. This process is already underway.

We must be prepared to exploit the ­resulting opportunities. We must keep our ear to the market, more so than previously, and offer an attractive product, service and price package for our customers. The question which we must ­repeatedly ask ourselves is this: how do we deliver benefits for our customers, and how do we ourselves profit from this? �

Interview conducted by Bianca Deppe-Leickel

The market is becoming more volatile and we need to keep up, it’s that simple.

Akzente December 2014

21

| A LOOK AT THE MARKET |

Twice as sweet: the sugar industry in the USA The US sugar industry produces roughly equal volumes of sugar from sugar beet and sugar cane. Sugar cane is cultivated in Florida, Hawaii, Louisiana and Texas. Sugar is produced from beet in Wyoming, Montana, North Dakota, Colorado, Nebraska, Washington State and Oregon. � nt

Price support, marketing quotas and import tariffs Sugar market regulation, the American way Around 11 million tonnes of sugar are consumed every year in the United States of America. By comparison, the equivalent figure for the EU is approximately 16.9 million tonnes per year. As in many other countries – and for the time being in the EU too – the sugar market is subject to government regulation in the USA. In total, every year the American sugar industry produces a total of around 7.6 million tonnes of sugar from sugar beet and sugar cane. This represents roughly 70 per cent of gross national annual consumption. To cover this volume, the country also imports around 3 million tonnes of sugar on average. Which measures has the US Department of Agriculture enacted to regulate the sugar market? A glance across the Atlantic:

The US sugar market is supported by three different political instruments:

22

1) Price support through loans (“domestic price support”), 2) marketing quotas and 3) import tariffs. “Domestic price support” is provided by the US Department of Agriculture, the USDA. “US sugar producers can apply to the USDA for loans with a term of nine months.

However, this is subject to the condition that sugar producers undertake to make payments to their sugar cane and beet farmers which are proportionate to the value of the loan. A ­ fter nine months, producers can opt to redeem the loan or to supply the USDA with sugar in the value of the loan. This is attractive for producers whenever the sugar market price is l­ower than the loan rate and thus represents a price guarantee for producers,” says Dr Thordis Möller of Nordzucker’s Economics division. The loan rate is currently 18.87 US cents per pound of raw sugar from sugar cane and

24.09 US cents per pound of white sugar from beet, while the average raw sugar price in the USA (New York No. 16) in 2014 is around 24 US cents per pound.

The USDA offers similar loan programmes for other agricultural products. However, a particular feature of this loan programme is that these loans are extended to the sugar producers instead of the raw material farmers, as is the case with other programmes, says Möller. The sugar which the USDA receives under this programme is mainly resold for production of bioethanol under the Feedstock Flexibility Program (FFP).

Quotas for domestic sugar production As well as the price support provided by this loan programme, the agriculture ministry also imposes marketing quotas.

These quotas regulate sugar production in relation to consumption. This is similar

Sugar beet Sugar cane

Bioethanol 2012

39,900,000 tonnes

Bioethanol in the tank Domestic biofuel production has been subsidised in the USA since the 1970s. In 2012, approximately 39.9 million tonnes of bioethanol were produced in the USA. Most of this bioethanol comes from maize. The USA is the world’s largest producer of bioethanol (ahead of Brazil) and is the global market leader in this field. � nt

to the current quotas in the EU’s sugar market regime. The agriculture ministry requires approximately 85 per cent of sugar consumption in the US food sector to be covered by domestic sugar production. “The USDA specifies how many million tonnes of sugar may be marketed throughout the USA. However, since sugar is produced from both beet and cane in the USA, the USDA has specified a ratio of 53.35 per cent (beet) and 45.65 per cent (cane). Accordingly, 53.35 per cent of this marketed sugar must be produced from beet and 45.65 per cent from cane. These quotas are apportioned to the sugar-producing states and then within these states to individual companies,” Möller explains. If a state is unable to meet its quota – e.g. if its harvest is worse than expected – the remainder of its quota is passed on to another state.

“However, this quota can only be passed

on between states which produce sugar from the same raw material. So a state which produces sugar from sugar cane can take on a portion of the quota of ­another state which also produces sugar from cane, but it cannot do so for a state in which beet is used for sugar production,” the agronomist continues. One similarity in relation to measures in the EU relates to the quota system for sugar which may be sold for consumption: “Within its corporate Group, Nordzucker is permitted to sell a certain volume of sugar for the food sector in the EU. This is what we now refer to as quota sugar.

The US producers have a similar quota.

the EU: using a tariff rate quota, at the start of the financial year, the ministry determines how many million tonnes of sugar per year may be imported at reduced customs tariffs. The US Department of Agriculture regulates the sugar market in the USA through these and other measures, so that the conditions for the sugar industry in the USA are analogous to those in the EU, as things presently stand. On the other hand, the abolition of quotas after 2017 will lead to heightened competition in the EU. However, import tariffs will remain in force in the EU even after 2017. � nt

Import tariffs also in force in the USA The third measure which the US Department of Agriculture imposes to regulate the market is import tariffs: here too, this resembles the current situation in

Akzente December 2014

23

| CLOSE-UP |

“Service is our philosophy” At the Nordzucker Service Centre in Uelzen, it’s all about the customer Nordzucker Service Centre The Nordzucker Service Centre (NSC) handles the necessary work steps once the silo has been loaded: emptying the silo, transporting the sugar for sieving (at Nordzucker’s Ger­ man plants, the NSC also handles sieving), loading (either loose on lorries or packaged in small or big bags), refining to produce icing sugar or preserv­ ing sugar and storage of the packaged mer­ chandise.

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When you think of sugar production, the first things that spring to mind are beet fields, harvesters and steam emerging from plant chimneys. However, the silo does not mark the end of the process – far from it, in fact: this is where everything really gets going. “At the Nordzucker Service Centre, we’re responsible for ensuring that the sugar gets to where it needs to be: to the customer.

We want to serve our customers. ‘We can’t’ isn’t something we understand,” says NSC director Dr Thomas MörleHeynisch on his way from the plant gates to his office – the steam rising above the roofs of the plant is clearly visible in the background.

As Nordzucker sells around 80 per cent of its sugar to customers in the food industry, work in the Service Centre focuses mainly on loading loose goods. “People always think that working with the loose goods is easy, and in purely physical terms they’re right – flap open, sugar in, done.

But in terms of what it requires of employees, it’s actually the most difficult job,” Mörle-Heynisch explains. After all, there are many regulations and requirements that his staff have to follow: “It all starts with an employee having to check that the lorries that arrive here have been disinfected and sealed. They need to check the consignment note and the delivery hoses in the silo before loading the correct type of sugar,” lists MörleHeynisch. When loading the lorry, his employees must comply with regulations governing load distribution on the axles and take a sample of the loaded goods, before finally completing the loading documentation. No mistakes can be made when filling out the delivery ­documents. “And all this with the kind

There is a lot going on: the Uelzen Service Centre supplies customers from the food industry to retailers.

of high turnover of vehicles that we are experiencing at present – up to 60 lorries a day. In this situation, people have to be accurate in their work. You have to motivate your staff for that,” stresses Mörle-Heynisch.

Safety has top priority While one lorry after another is seen to and loaded, in the section of the NSC devoted to packing bags of sugar for retail trade, hundreds of little blue bags of sugar are conveyed away from the filling stations to be packaged in brown paper in ten-pack units destined for the shops.

“Here, everyone needs to know ‘their’ machine precisely, monitor it and call the mechanic in good time if something

goes wrong. Everyone knows where their own machine gets ‘sensitive’ and what to do to prevent it from grinding to a halt,” Mörle-Heynisch explains. This is something that’s not allowed to happen, not least because it will rip the brown paper used for the outer packaging. Nevertheless, “we have the power to stop a ­machine,” stresses the sugar technologist.

This is a good thing, he says, because “every package gets a batch number. The employee at the machine must check that this is the case. Should the number not be printed, the employee needs to intervene in the process, prevent an unnumbered package being sent out and fix the cause of the problem as quickly as possible to enable production to resume.”

Under control: ­product safety is the top priority.

Whether destined for baking or making jam – the right speciality is available for any purpose.

An eye on everything Sugar may always be just as sweet, but one type of sugar is not quite the same as another. For example, there’s fine sugar and then there’s extra-fine sugar.

The difference lies in the size of the small sugar crystals.

These grow to different sizes during the crystallisation process and are separated out into fine, medium and coarse sizes when they are sieved. The different sizes are stored in what are known as day tanks. As customers in the food industry order highly specific blends of the different sizes – customised for use in the production of confectionery, for instance – the employee at the central control console needs to

ensure that all customers are supplied with the blend that meets their specifications. “However,” Mörle-Heynisch explains, “the colleague in question also needs to make sure that, as far as possible, an equal amount of sugar of the various different sizes is taken out of the day tanks. This is because we need enough storage capacity for the individual sizes in the day tank, but we also mustn’t run out of any particular size. In other words, we have to have all crystal sizes in stock. The colleague therefore makes sure that we have an even throughput of sugar in the station so that we are always able to produce a supply and serve our customers.” � nt

Display boards are put together for special promotions in the retail trade. These enable supermarket customers to find, for instance, sugar specialities for their Christmas baking and ­delicious recipe ideas at a glance. These boards are constructed manually on quarter pallets in the Service Centre, then products and flyers are added before the boards are packaged in protective film.

Akzente December 2014

25

| CLOSE-UP |

“We have come to a­ ppreciate Nordic Sugar as a manufacturer of ­high-­quality products from raw materials grown and processed in Sweden.”

Bread from the Arctic Circle A visit to Polarbröd in Sweden

Two women at the top: Karin Bodin, Managing Director of Polarbröd (left) and her sister Anna Borgeryd, Chair of the Administrative Board

Right up near the Arctic Circle in Sweden, Polarbröd bakes bread and bread rolls following old Sami traditions. Sugar and syrup from Nordzucker have an important role to play.

Baking according to a long-standing ­tradition – this is how Polarbröd has made a name for itself as one of Sweden’s largest bakeries. Virtually all ingredients are sourced from Sweden, and most are entirely plant-based. Among the most important are sugar and syrup.

“Sugar and syrup help ensure the fluffy texture of our bread and enhance the characteristic flavour of each type of bread,” explains Managing Director

26

Karin Bodin, the fifth generation of the founder’s family to head up the business, which was founded in 1879.

“Sugar and syrup act as natural preservatives for the bread. As Polarbröd doesn’t use any artificial preservatives, our bread is always fresh, with only a short shelf life – something that is entirely ­natural with this traditional method of baking,” says Karin Bodin.

Among the most popular products are the ultra-thin flatbreads which Polarbröd makes in soft and hard versions.

The company has been a leader on the Swedish market for a long time now with these flatbreads. Much of the preparation method owes its origins to the

century-old traditions of the Sami people.

The bread is baked for a very short time only before being immediately frozen and available for distribution straight away.

Reindeer add value The company now owns three industrial bakeries in the northernmost part of Sweden. The largest one, in the town of Älvsbyn, is a mere stone’s throw from the Arctic Circle.

Karin Bodin explains: “When you’re so far North, transport is obviously a challenge. But it is this location that gives us the essence of our brand. The Norrland region is synonymous with fresh air and unspoilt nature – and this

Based in the Swedish town of Älvsbyn, Polarbröd is a familyrun business that has been making soft and hard flatbreads since 1879 – and is now in the hands of the fifth generation.

reputation benefits our brand across the country”, says Karin Bodin.

It was her grandparents who, in 1972, chose Polar as part of the company’s name and a reindeer as its logo, symbolising the pride they felt for N ­ orrland.

“We still convey this pride in our brand communications to this day, and this form of communication is also key to P ­ olarbröd’s success in our main export markets, Norway and France, where the image of a ­faraway, pristine land has positive connotations,” Karin Bodin explains.

Partnership with Nordic Sugar Polarbröd’s partnership with Nordzucker subsidiary Nordic Sugar has been going

strong for many years. As well as white sugar and syrup, Polarbröd also buys ­Fibrex, the dietary fibre product that gives certain breads their characteristic texture. Over two-thirds of the goods are transported to Polarbröd by rail, with the rest travelling by lorry.

Karin Bodin says: “We have come to appreciate Nordic Sugar as a manufacturer of high-quality products from raw materials grown and processed in Sweden.” This makes it clear to us that our supplier, like us, is taking responsibility for a sustainable future.” �

Ulrik Larsen

Facts and figures Polarbröd AB l Revenues

of around 840 million Swedish Crowns (91 million Euros)

l Produces

around 39,000 tonnes of bread every year

l 380

employees

l Market

share in Sweden: soft flatbread 61 per cent and hard flatbread 56 per cent

Three large-scale bakeries in Omne, Bredbyn and Älvsbyn in the Norrland region www.polarbrod.se

Akzente December 2014

27

| SWEET STORIES |

Baking for festive celebrations SweetFamily and Dansukker enhance Christmas baking For many people, baking cookies is as much a part of Advent as the smell of fir trees, burning candles on the Advent wreath or – the most familiar – stressful trips to the shops for Christmas presents.

My grandmother, for instance, used to bake all manner of different things such as cinnamon stars, “black-and-white” biscuits and crescent-shaped vanilla ­biscuits. They would be kept in square ­silver tins and brought out on Christmas Day. Alongside ruddy-cheeked apples, “Domino” chocolates and brightly col-

Almond diamonds

oured chocolate rings, they were a firm fixture of the festive spread and Christmas coffee time at my grandparents’ house. My memories of this time are ­reawakened whenever I go into the kitchen between the first day of Advent and just before Christmas to mix flour, sugar, almonds and eggs, knead a dough, shape biscuits and bake them, while the kitchen gets warmer and warmer.

The tradition of making biscuits at Christmas goes back a long way. Some people think it has its origins in medieval monasteries: delicious biscuits were

believed to have been prepared with sugar and spices – both very expensive ingredients at the time – to commemorate the birth of Jesus. These precious commodities were then distributed to the poor. To this day, we bake during Advent, and this tradition exists across Europe. Scandinavian baking often uses syrup, which Nordzucker sells in Northern Europe under the Dansukker brand. Here are two recipe ideas: � nt

Ingredients: 200 g whole blanched ­almonds 200 g whole hazelnuts 200 g dried figs 100 g candied orange peel 100 g candied lemon peel 60 g flour

180 g 150 g 1 tsp 1/2 tsp 1/2 tsp 1/2 tsp 50 g 2 tbsp

brown sugar honey ground cinnamon ground cloves ground ginger ground nutmeg butter icing sugar

Preparation: To make the dough, spread the almonds across one half of a baking tray and the hazelnuts on the other half. Roast for about ten minutes in the centre of the oven. Cover another baking tray with baking paper and spread thinly with butter. Place a greased, floured square baking mould (26 x 26 cm) on top. To peel the roasted hazelnuts, gather them in a dishcloth and rub them together. Then coarsely crush them using a large knife. Coarsely chop the almonds and figs and tip them into a bowl. Finely chop the candied orange and lemon peel and add to the nuts together with the flour. Mix everything together.

Tip the SweetFamily brown sugar and honey into a bowl and heat it, stirring all the time. Take the bowl off the hob, stir in the spices and add the butter, letting it dissolve. Add the hot spiced honey ­ to the nut mixture and stir it with a wooden spoon until smooth.

Pour the dough into the baking mould and smooth it off. Bake for between 25 and 30 minutes in a preheated oven at 160 °C. Remove from the oven and allow to cool. Take off the baking mould.

Then sprinkle over the icing sugar. Cut into diamond shapes using a large lightly oiled knife.

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Dizzy biscuit lollipops

Brown sugar – do you know the difference?

Ingredients: 270 g plain flour 40 g Dansukker Superfine Sugar or 60 g Dansukker Icing Sugar 15 g Dansukker Vanilla Sugar Fairtrade 200 g butter or margarine 1 egg Red food colouring Hundreds and thousands Sticks

Preparation: Preheat the oven to 175 °C. Mix the ingredients together until they form a dough. Place half of the mixture in another bowl and add the red food colouring. Do not colour the other half.

Wrap the doughs in cling film and leave them in the fridge for 15 minutes.

Roll out both pieces of dough, preferably on baking parchment, placing the red dough over the light-coloured one. Carefully roll them together from the long end and roll them in the hundreds and thousands. Leave the dough in the fridge for 15 minutes before cutting it up.

Cut the dough into discs, about 0.5 cm across, and, if desired, place a stick in the middle.

Sugar is a versatile specialist. With our SweetFamily and Dansukker brands, we offer our customers the right kind of sugar for whatever they are baking this Advent. The easily soluble crystals of our fine SweetFamily sugar make it a true all-rounder in the kitchen and ideal for use in making cakes, pastries or desserts. If you want to make especially fluffy biscuit or cake dough for tarts or fine cakes, why not try SweetFamily’s finest sugar? The crystals in this sugar are extra-fine and evenly sized.

If, for example, you want to bake a spiced almond biscuit or another type of dark biscuit with a distinct note of caramel, look no further than SweetFamily brown sugar. This brown sugar is a well-loved ingredient in recipes that use chocolate, almonds or other nuts. It gets its dark colouring from the addition of caramel, thus giving biscuits an extra-special aroma and an appealing dark colour. Another dark sugar, but unlike SweetFamily brown sugar not obtained from sugar beet, is SweetFamily cane sugar. Produced from sugar cane, this sugar keeps its golden-brown hue because it is unrefined. � nt

Bake in the centre of the oven for about 8 minutes. Leave the biscuits to cool on a wire rack. Store in an airtight container.

Even more baking specialists: ­SweetFamily decorating sugar and Zuckerträume vanilla flavouring.

Akzente December 2014

29

| IN BRIEF |

Day of German Unity

Nordzucker opens its doors to visitors from across Germany To coincide with the main celebrations for the Day of German Unity in Hanover on 2 and 3 October, Nordzucker joined Agravis and Deutsches Milch Kontor in demonstrating the variety of vocational training options available in the three companies in the agricultural and food industry. Stephan Weil, the Minister-President of Lower Saxony, was also able to see for himself in which regions the three companies have premises. � ed.

Harvest festival

Autumn time is harvest time This year too, Nordzucker had a stand at the 20th State Harvest Festival held in Magdeburg’s Elbauenpark. Under the motto “Nordzucker – a strong partner for the region”, the regional growers’ association, Nordzucker’s cultivation adviser and the apprentices from Klein Wanz­ leben shared a campaign tent.

Among other things, visitors to the tent could find out the results of the 20 · 20 · 20 project and learn about the sugar manufacturing process using the example of a model sugar plant. The apprentices devised a total of 200 different experiments from the worlds of physics and technology using their experiment box. ­Visitors could prove their knowledge of healthy eating in a quiz on the food pyramid and test the strength in their legs on the EnergyBike, while the Rural Women’s Association stand offered tastings of 1-2-3 Rote Grütze. � ed.

Birthday

60 years of “Süßer Heinrich” The “Süßer Heinrich” first came onto the market 60 years ago. You aren’t familiar with it? You must be!? The “Süßer Heinrich” is a glass sugar shaker with a metal lid that has a little tube in the middle. An angled opening in the tube ensures that the same quantity of sugar is dispensed into your coffee or tea with each shake. In other words, a practical and hygienic invention. The sugar shaker owes its name to its inventor, Heinrich Kurz from the German state of Hesse. It was his clever idea that put the “Süßer Heinrich” on tables in dining rooms and cafés in 1954, where it has remained ever since. � ed.

30

Exchange

Visit from MEP Burkhard Balz On 17 October, MEP, Member of the European Parliament, Burkhard Balz visited company headquarters in Braunschweig.

Christian Kionka, Head of Communications & Public Affairs, told the CDU politician about the challenges facing Germany’s sugar industry as a result of the latest reform of the EU’s ­agriculture policy. Ralf Brunkow, Head of Corporate Finance, discussed issues of relevance to Nordzucker arising from the EU’s financial market policy with the MEP, who is a qualified banker and lawyer and a native of Stadthagen. At the end of the meeting, Burkhard Balz returned to Brussels with the call to prevent unfair competition, not just within the EU, but on the international stage as well. � ed.

Delicious!

Successful celebrations held to mark the apple harvest on the school farm in Hevensen In late September, the international school farm, which is supported by Nordzucker, hosted major celebrations. Visitors to the farm included Frauke Heiligenstadt, Lower Saxony’s Culture Minister; Member of the State Parliament, Michael Wickmann; and Hartmut Danne, Chairman of the Rural Residents’ Association for Northeim-Osterode. In their welcome, they stressed the significant contribution that the international school farm makes to educating consumers about agriculture and nutrition. At various information and hands-on stations, guests at the festival could try activities such as pressing their own apple juice and find out all about sugar beet or historical varieties of potato as well as have a go at felting or carving pumpkins. � ed.

­ Donations

“Unterstützungskasse der Zuckerfabrik Nordstemmen e. V.” presents donations

Apple festival

Friends Jam. Let’s share! 2014 In autumn, Nordzucker took part in the so-called Friends Jam, a welfare project in Lithuania that is all about apples, sugar and large families. This project, set up last year by our subsidiary Nordic Sugar Kėdainiai in collaboration with Lithuania’s association for large families, is geared towards providing large families in the country with the ingredients for making their own jam, telling them all about healthy eating and encouraging them to help out voluntarily.

The concept sees orchard owners share their harvest with large families in exchange for voluntary help getting the harvest in. The project was a big success, with over 6,000 kg of apples (2013: 2,500 kg) being donated to the families. It is estimated that some 160,000 children in Lithuania live in large families, defined as those with three or more children. The project thus has the potential to reach many people in this country, which has a total population of 2.9 million.

In late September, five associations from Nordstemmen were presented with a cheque for EUR 2,000 by Ines Büthe in her capacity as Chairman of the association “Unterstützungskasse der Zuckerfabrik Nordstemmen e. V.” The presentation to representatives of the recipients took place in a ceremony held in the Nordstemmen plant. The money came from the assets of the now-dissolved support fund that was set up in 1950 to provide aid to employees of the Nordstemmen sugar plant, their wives and surviving children in cases of need such as poverty, illness and death. As this form of social security benefit has now been transferred to other systems within Nordzucker, the association had lost its purpose and decided to donate its remaining assets once more to other associations in the local area that were still active.

Donations were presented to the following associations: DLRGOrtsgruppe, Förderverein der Marienbergschule, GemeindeJugendRing, Motorsportclub/ADAC and the KOMM Nachbarschaftszentrum. � ed.

Eight festivals and some new records To raise awareness of Friends Jam, eight festivals were organised this year, involving 122 families, who made jam from apples, Dansukker preserving sugar and vanilla sugar. Some 100,000 ­visitors came to the festivals to try the fresh jam.“ � ed.

Akzente December 2014

31

| IN BRIEF |

Site visit

Award-winning

Lower Saxony’s Finance Minister Schneider visits Uelzen plant

Považský Cukor and SweetFamily crowned Superbrands in Slovakia

The Finance Minister for Lower Saxony, Peter-Jürgen ­Schneider, and Nordzucker’s Chief Financial Officer, Dr Michael Noth, met at the Uelzen plant on 20 November to discuss current developments on the sugar market and the mounting challenges which are emerging for the company as a result. Dr Michael Noth thanked the Finance Minister for his interest in Nordzucker and outlined in his talk the tense situation on the sugar market, which is currently characterised by considerable pressure on volumes, in part as a result of imports, which in turn is leading to significantly reduced income at Nordzucker. Finance Minister Schneider emphasised the importance of the agriculture and food industry, particularly for the Federal State of Lower Saxony. The Minister was then especially interested in the Uelzen site. “Industrial sites are very important to us, as they provide employment and add value to agricultural regions,” he said. � ed.

Our two brands Považský Cukor and SweetFamily have been awarded the title of Superbrands in Slovakia, which they can now hold for a year. “We’re proud that our customers and consumers trust us and are aware of the responsibility and sense of obligation we feel towards them,” said Ľubomír Fischer, Head of Marketing.

The Superbrands accolade is given to brands that have gained a reputation for outstanding quality within their business sectors and provide benefits that consumers expect and appreciate. The Brand Council, which is made up of experts from media, marketing and communications as well as representatives from industry, evaluate a shortlist garnered from a wide range of brands in Slovakia, with only the highest-ranked ones being named Superbrands. The annual “Superbrands Yearbook” offers insights into the success enjoyed by each brand by showcasing their history and their products and highlighting their biggest and most important achievements.

Superbrands is an international programme that was founded in the UK. The accolade is currently awarded in over 80 countries ­including Germany, Denmark, Poland, Sweden, Finland, Latvia and Estonia. � ed.

Exercise

Large-scale fire drill in the Clauen plant For the first time in the current campaign, the Clauen plant has organised a large-scale fire drill on its premises. Four different drill scenarios were tested out, including rescuing an injured person at height and extinguishing a burning wheel loader ignited by a cable fire. Some 115 firefighters were on the scene for this drill.

Erich Strelau, who is responsible for fire protection at the plant, had devised it together with Günther Becker, head of the Hohenhameln fire service. “In an emergency, we believe it’s crucial for the fire service to know the site like the back of their hand,” said Erich Strelau, explaining the purpose of the drill. “It was something new for us to test this out during the campaign. For us, it was particularly important to largely keep the drill a secret, enabling us to test how quickly the firefighters would arrive on the scene under near real-

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life conditions.” With this exercise, the plant is also answering its own questions and those from customers regarding safety and ­hazard prevention. “The drill is also about testing out and improving the lines of communication between managers and the emergency services that are deployed. Building on general feedback ­following the drill, we then want to work with the fire service to help make our approach to damage prevention even more efficient,” Erich Strelau said. His initial conclusion in the evening was very positive: “From our point of view, the drill went very well.” � ed.

Nutrition

Sugar Forum – dietary knowledge is an educational task Experts from the fields of science, politics and economics recently discussed suitable approaches of consumer education at the Sugar Forum in Berlin. Everyone needs to be able to implement their own perception of nutrition, which is why consumer education that is more closely orientated towards everyday practices is recommended. As Chairman of the Sugar Industry Association, Member of Nordzucker’s Management Board Axel Aumüller outlined decisive aspects which would be expanded upon in the subsequent presentations and podium discussion in his opening statement: “Education enables us to make competent decisions.

Consumers need to be able to make judgements and act on their own accord. People who cannot decipher a list of ingredients or nutritional information on a food product will not be able to make an informed decision. Furthermore, eating is also enjoyable, pleasurable and contributes towards well-being and a healthy lifestyle. Consumer education needs to convey this as well.” � ed.

Award-winning

Nordic Sugar second in the 2014 “E-Prize” energy award The Örtofta plant can boast one of the smartest and most ­innovative energy-saving solutions in Sweden. This was ­confirmed on 8 October when the distinguished “E-Prize” energy award was presented, with Nordic Sugar coming a respectable second in the “Large companies” category.

Sustainable investments in the future Within the Nordzucker Group, sustainable energy-saving ­solutions are a key component of the long-term strategy to optimise sugar production and secure firm foundations for future sugar deliveries, and Sweden is no exception.

With this in mind, Nordzucker’s subsidiary Nordic Sugar has invested in two new energy-efficient facilities in its Örtofta plant. The new facilities will cut the sugar plant’s energy consumption by around 150,000 MWh per year, corresponding to around 30 per cent of the energy required by the plant during the campaign. This reduction in energy consumption would be enough to heat around 7,500 single-family homes for a year. At the same time, carbon dioxide emissions are being reduced by around 32,000 tonnes per year. These solutions are the result of investments worth 215 million Swedish Crowns, making them the largest of their kind seen in Sweden’s sugar industry for twelve years.

Environmental award for sustainable energy-saving solutions As well as the 2014 “E-Prize”, the Örtofta plant also won the environmental award that is presented by Eslöv local authority and the south Swedish newspaper Skånska Dagbladet. The award was in recognition of a long-standing and ambitious commitment to continuous improvement in energy efficiency.

During this year’s campaign too, the Örtofta plant will once again be investing in sustainable energy management. � ed.

Award

Klein Wanzleben plant receives “SchuleWirtschaft” prize Nordzucker was awarded the “SchuleWirtschaft” [School Economy] prize in Berlin on 18 November 2014. The Nordzucker plant in Klein Wanzleben won third prize among medium-sized companies in the German-wide competition. The prize is sponsored by the German Federal Ministry for Economic Affairs and Energy and recognises companies which are especially committed to providing careers advice and easing the transition between school and the world of work. Not unlike Nordzucker’s Klein Wanzleben plant, which has been running flagship projects such as “girls in industry” and “work experience days for prospective trainees” for many years now. A total of 89 companies applied for nine prizes across three categories. � ed.

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| PEOPLE AT NORDZUCKER |

Jaroslav Michal Mechanical engineer, Trenčianska Teplá plant Jaroslav Michal is a mechanical engineer in the Trenčianska Teplá plant. He has worked in the sugar industry since 1987. Together with his team, he is responsible for maintaining and servicing all pumps in the plant during and outside the campaign.

“I was specially trained for sugar production. Here in the Trenčianska Teplá plant, I started as third mechanic in the inspection and monitoring department and spent twelve years in this role. I then worked cooking sugar and then in syrup extraction. One year later, I became mechanical engineer for the whole plant.” Jaroslav Michal cannot imagine working anywhere else other than the sugar plant: “You always learn something new in the sugar plant, you can improve your processes. That’s what makes the work so interesting. During the campaign, I think about what we could do to make production more efficient so that things run even better next time around.” His extraordinary level of dedication, his attention to detail and his desire to learn new things are common knowledge not just amongst his colleagues but also in the entire plant. � nt

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| CLICKED ON |

A look online at Nordzucker and SweetFamily SweetFamily website with a new look Anyone who searches www.sweet-family.de for delicious recipes and inspiration or information on Nordzucker’s SweetFamily products will undoubtedly already have come across the brand’s redesigned site.

Since September, www.sweet-family.de has presented a fresher and more up-todate face to its visitors. At the heart of the new design are pictures of recipes ­designed to entice people to try them out. Here’s all you need to know about our new site.

Focus on recipes To provide inspiration for bakers, for instance, new delicious recipes take centre stage. The recipes tab, for example, contains several seasonal recipes, each with a large photo. One click takes you from the picture to the recipe itself. Recipes can be sorted by category, preparation time or

… themed area guides packed full of tips

suitable occasion, allowing you to get a quick and easy overview. And to make sure you can quickly find what you’re looking for, the search function on the new SweetFamily website has been improved and made more prominent. Over time, the system learns from your input.

It can even spot typos after a while and will make various suggestions for the user to choose from.

Themed areas provide extra guidance In the themed area guides section, the site offers step-by-step instructions and tips and tricks for making dough, for instance.

From selecting the right kitchen utensils through to the ingredients list and the individual recipe steps complete with pictures, here you can learn many new things, including what you have to do to make your cake mixture extra fluffy. The clear pictures and short texts are easy to follow.

… now also optimised for mobile access

SweetFamily website: a fresh design with a focus on recipes…

Mobile access anywhere and at any time The new SweetFamily website has now also been optimised for smartphones and tablets, making it easy to quickly look up recipes or ingredients. Recipes can also be rated on the website itself and shared on many different social media platforms, regardless of whether you are at home or on the move. � ed.

Imprint Published by: Nordzucker AG, Küchenstraße 9, 38100 Braunschweig, tel +49 531 2411-348, fax +49 531 2411-378, akzente@nordzucker.de; Editorial team (ed): Bianca Deppe-Leickel (bdl), Susanne Dismer-Puls (sdp), Oliver Ditsch, Frank Knälmann, Tomas Kocis, Mariann Mellström (mm), Dr. Thordis Möller, Tanja Schneider-Diehl (tsd), Marion Stumpe, Nina Tatter (nt); Layout: Sieler Kommunikation und Gestaltung GmbH, Frankfurt; Printed by: Leinebergland Druck GmbH & Co. KG, Alfeld | Image credits: Marek Kruszewski, Nils Hendrik Müller, Günter Nimptsch, Nordic Sugar (Apelöga), Nordzucker, Shutterstock, Ulrik Larsen.

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Coloured marble biscuits Ingredients

(for approx. 45 biscuits): For the dough: 280 g flour 1 teaspoon baking powder 180 g butter 120 g fine sugar 2 egg yolks (size M) 200 ml beetroot juice For the decoration: 1 teaspoon beetroot juice 1 tablespoon egg white 50 g coarse sugar 4 tablespoons cherry jam 1 tablespoon fine sugar Per 100 g approximately: 351 calories; 16,9 g fat; 45,6 g carbohydrates; 4,1 g protein

Preparation: 1. For the dough, pour the beetroot juice in a pan and boil off to leave about 2 tablespoons. Place the rest of the dough ingredients in a bowl and mix together well by kneading. Cut off about one third of the dough and knead together with two teaspoons of beetroot juice. Wrap up both pieces of dough in aluminium foil and leave in a refrigerator for at least 6 hours. Preheat the oven to 160 째C fan-assisted, and cover two baking trays with baking paper.

2. Knead the two pieces of dough until they are smooth, and shape each into a roll (30 cm long). Intertwine the two rolls, dust with flour, and roll out into a sheet about 3 mm thick. Cut out your favourite biscuit shapes, place them on the baking tray, and bake in the preheated oven for approx. 9

minutes until light brown. To make the coating, mix up one teaspoon of beetroot juice with the egg white in a bowl. Add SweetFamily coarse sugar (Hagelzucker) and stir together until the colour of the mixture is uniform.

3. Squeeze the cherry jam through a sieve into a bowl. Add SweetFamily fine sugar, and bring to the boil once. Once the biscuits have cooled down, drip the warm jam onto the biscuits, and dust with the coloured coarse sugar.

Preparation time: approx. 45 minutes (not including baking time and the 6 hours resting time in the fridge)

ips and d more t er: n fi n a c nd You recipes u delicious ly.de

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