Südzucker AG, Europe’s largest sugar producer, posted a sharp deterioration in results for the 2025/26 fiscal year. The company’s operating profit fell to €163 million from €350 million a year earlier, while the sugar segment posted a loss of €177 million. Revenue from sugar sales fell 28% to €2.8 billion. The company attributed this to lower prices in Europe and reduced sales volumes. Additional pressure is created by the growth of duty-free imports, including from Ukraine. This was reported by Ukragroconsult with reference to Agrarheute.
Against this background, Südzucker Group has already reduced the area under beet by 18% – to 305.8 thousand hectares, and processing – to 24.8 million tons. The reduction continues in the current season as well.
At the same time, another major producer – Pfeifer & Langen – has started to break contracts with farmers. The company plans to significantly reduce beet processing, and more than 80 farms with a total area of about 1.2 thousand hectares will no longer receive new contracts. Farmers in the regions more than 100 kilometers away from the plant are most affected. The company explains the decision by economic inexpediency, but farmers criticize the abrupt and unpredictable termination of cooperation. The situation complicates crop rotation planning and increases pressure on farm profitability. According to farmers, it will be difficult to return to beet cultivation after the loss of contracts.
Overall, the European sugar industry is expected to see a further decline in production. The industry association predicts that the area under sugar beet in Germany in 2026 could fall by a further 12.6%.
