Nordzucker in Competition Keeping Pace with the Market

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 Review of the first half of the year; falling Interview with Mats Liljestam Page 16 prices are having an impact Page 20 Page 8 108 sugar plants produced sugar from beet in the EU in the marketing year 2012/13.

2 | 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 challenges. 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 trans- formation over the past few years – not least through our strategy of internationali- sation 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 3 | CONTENTS |

Around the beet: 14 Report: 24 Falling sugar prices affect raw material The customer is the top priority at the purchasing. Find out what this means Nordzucker Service Centre. Find out for the beet market. 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 competition the customer. Interview with Mats Liljestam

8 Falling prices are having an impact – interview 22 Price support, marketing quotas and import tariffs – with Dr Michael Noth sugar market regulation the American way

10 Nordzucker logistics: Working magic with customers CLOSE-UP 12 Sugar purchasing – credibility is the be-all and end-all 24 “Service is our philosophy” – the Service Centre at our Uelzen plant 14 The raw material market – Dr Lars Gorissen on the challenges and outlook beyond 2017 26 Bread from the Arctic Circle – a visit to Polarbröd in Sweden 15 20 · 20 · 20: Sustainability and innovations in beet cultivation SWEET STORIES 16 Campaign 2014: early start – perfect campaign 28 Baking for festive celebrations 18 Handling the transfer of knowledge and expertise – interview with Axel Aumüller 29 Brown sugar – do you know the difference?

19 Uelzen: Silo 9 will remain in place

4 Baking for festive celebrations: 28 People at Nordzucker: 34 Kitchens are busy as Christmas Jaroslav Michal is a mechanical engineer approaches. Recipe ideas from in the Trenčianska Teplá plant. He has SweetFamily and Dansukker. worked in the sugar industry since 1987.

Cover picture IN BRIEF

30 Company news

PEOPLE AT NORDZUCKER

34 Jaroslav Michal from Trenčianska Teplá.

CLICKED ON

35 A look online

RECIPE

36 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 5 | PANORAMA |

Keeping pace with the competition Defining a new direction for our philosophy and our activities

The sugar market in the EU has acquired production of quota sugar was impossible company with new, leaner and more a new rhythm: momentum, price pressure by definition – prices were relatively flexible structures which are able to and competition are shaping business. It stable and somewhat decoupled from adjust to market circumstances and to is all about market shares and competitive the global market price. But for a few shape processes so that the information advantages and, in the end, who is able years now we have been more keenly and signals which we receive from the to stay the course. The sugar world has experiencing the price fluctuations on market and from our customers trigger changed. the world market. This enabled us to the necessary measures and innovations. benefit from high prices over the past The right product, price and service mix Hartwig Fuchs describes how the com- few years, when sugar production was for our customers must always be the pany intends to keep up: unable to keep up with rising global top priority. consumption. Yet, global prices of sugar However, it is not just our sales “For a good many decades, the sugar have now significantly dropped due to market which is changing. The frame- market in the EU was strongly regulated strongly increased production capacities, work conditions for beet cultivation are by quotas and minimum beet prices. while at the same time the European also evolving. We must continue to tie Since the most recent reform of the sugar market will be liberalised in 2017/18. good cultivation areas to our plants, market regime, a political objective has This is prompting additional pressure while at the same time achieving closer been to open up the European market and considerable unrest on the market. integration of the two. Our owners and for imports – with domestic production The time to act is now. We must beet farmers require planning certainty only covering 85 per cent of the required face the new challenges and reorganise regarding the framework conditions for volume for human consumption. Over- Nordzucker: the goal is to provide the joint production of sugar beyond 2017.

6 From beet to sugar: The market shapes the business. Nordzucker is preparing for a new market situation. The goal 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 Nordzucker is a European company And this is true across the company. The various flexible and fixed short-term and which has regional roots but is also in- goal is to keep up with the competition long-term contract models, to guarantee ternationally focused. 2017 is already and to establish a solid position for our- planning certainty for our customers’ sup- with us – prices in the EU have fallen selves, since there will be a further wave plies while also ensuring the necessary dramatically, much more strongly than of consolidation within the EU. We must degree of flexibility. In future, the market first envisaged. We must respond to this face the competition and the challenges will determine how much sugar is pro- immediately by cutting costs, establish- that go with it. duced, and at which plants – we therefore ing leaner structures and rethinking old We are on a strong path, since we need to orientate ourselves to the market. habits. We must become more efficient. have virtually eliminated our debt over the Our goal must be to adopt an We have no time to lose in looking back past few years and have hugely strength- entrepreneurial philosophy in every – the challenges and competition lie ened our equity position. But we are also business segment, to act with cost ahead of us, including the opportunities aware that we have hard times ahead of awareness and to consistently focus on which the current situation offers us: to us in which we will have to live off our the market. After 2017/18 there will no position ourselves as a new Nordzucker reserves. This will be the period in which longer be any minimum beet prices, and to convince our customers of our other competitors drop out. We will but nor will any export restrictions apply. strength and our product. make use of this price situation in order This means that our sugar production Only in this way will we be able to do our homework. And we will emerge must be competitive on the global mar- to play a role in shaping the EU’s sugar even stronger from this phase, so as to ket – while at the same time we strive market of the future. We require genu- utilise all of the opportunities which the to be a reliable partner for our custom- ine entrepreneurship which proactively market offers from 2017.” � ers. There is no doubt that it will be and innovatively encompasses the areas something of a challenge to achieve where we need to change and where all of this. we are still too slow and too expensive.

Akzente December 2014 7 | PANORAMA |

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

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 European market. At the same time, competition for market shares in Europe is tighten- ing 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 them- selves 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 “Price pressure on the market is significant; our new contracts, the market has probably bot- prices for quota and non-quota sugar are tomed out now. We assume that the volume of supply will decline in the medium term, due to the continuing to fall.” weak price level in several countries. As demand Dr Michael Noth, Chief Financial Officer 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.

8 “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, our competitiveness,” says Noth. “We the past few years we have significantly with the successful completion of our must face the challenges posed by the increased our equity position and reduced Profitability plus efficiency programme market – so that we are aligned with the our level of debt. Nonetheless, we must and having realigned our organisational needs of the market and those of our continue to work hard at maintaining structures and business processes, customers – whilst also continuing to and expanding our solid position in this Nordzucker has implemented important work on improving efficiency and pro- market environment. If we are successful measures in order to prepare for a future ductivity in our company. Following here, our business will remain successful without the quota system. “However, many highly successful years for share- in future and we will actively shape the we cannot rest on our laurels. With the holders and farmers, we must now rise impending wave of market consolida- difficult earnings situation looming, we to the impending challenges together. tion.” � bdl need to continue to work on improving Thanks to a solid financial policy, over

Business performance continues to decline in the second quarter

Consolidated Revenues Consolidated EBIT Consolidated net Consolidated Group equity ratio in EUR m in EUR m income for the period Net debt Percent in EUR m in EUR m 1,223

InteRIm 975 229 RepoRt financial yeaR 2014/2015 6 months / 1 maRCh to 31 august 2014 185

67 68 68 53 Overall, the second quarter has been characterised by falling revenues, marking a continuation 6 month 6 month 6 month 6 month 6 month 6 month 31/8/2013 31/8/2014 of the trend that has shaped the 2013/2014 2014/2015 2013/2014 2014/2015 2013/2014 2014/2015 -104 past few months. You will find

-205 the full interim report in our 6 month 6 month Download Centre at www.nord- 2013/2014 2014/2015 zucker.de

Akzente December 2014 9 | 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

A water taxi slowly passes the quay wall tics packages for every contract made “Our logistics experts are exceptional communicators along Copenhagen’s Langebrogade street. with Nordzucker customers. The import/ and customer service is part of their very soul. They Nordzucker’s Logistics Manager Hans- export unit ensures that all Nordzucker are also clear-thinking analysts and know all the Kristian Kristensen looks out of his office deliveries comply with commercial regu- Nordzucker processes by heart. Whenever they make window at the ship that is travelling to- lations and provides all the necessary a decision, they do it with a clear overview of the wards Øresund. “Our objective? Happy documentation. However, a complex whole situation.” Nordzucker customers!” He’s only satis- catalogue of EU market regulation con- fied “when the right quantity of the right ditions that apply specifically to sugar product arrives at the right place at the must also be honoured. Certain deliver- Hans-Kristian Kristensen, Vice President Logistics right time and in the right quality.” The ies, for example, require a PAD (proof of qualified mechanical engineer, specialised arrival at destination); a detailed piece in robotics and trained in management, of documentation. When everything goes to plan, logistics has been working for the sugar industry services should be barely noticeable. since the mid-1990s. After working in Fin- Enabling just-in-time deliveries in While beet farmers and sugar plants land as a Project Manager at the refinery Europe can regularly show off their measurable in Kantvik and as a Production Manager at The purchasers in Kristensen’s team and obvious successes, Nordzucker’s lo- the Nykøbing plant, he now configures the ensure the necessary transport and stor- gistics team tends to play a more subtle flow of sugar and animal feed for Nord- age capacities for just-in-time deliveries role. Its product is to oil the wheels of the zucker’s customers in line with their wishes. across Europe. Long-term contracts are value chain in order to keep things mo- made with warehouses, HGV, rail, bulk ving. The results are customised, perfectly Upholding the law carriers and container lines, that are cer- timed deliveries – the key to satisfied His team is divided into five units. His 82 tified to transport animal feed or human customers in Europe and beyond. colleagues put together tailored logis- foodstuffs.

10 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 Nordzucker customers order over 700 “We logistics specialists are always a step new deliveries here every day. The col- or two ahead of the physical product in leagues in the logistic teams take over Mammoth task: our minds,” smiles Kristensen. “In terms responsibility once the customer and product logistics of order processing, we link market expec- the Nordzucker sales team are in agree- tations and sales forecasts from external ment. Contract details such as prices, The Nordzucker logistics team works at sales with the volume planning from beet specifications, quantities, delivery dead- locations all over Europe. 82 colleagues procurement and production. It’s a real lines, storage locations and destinations plan, organise and manage warehousing, challenge,” he says. “The result is a mar- are entered into the central ERP system transportation and customer service for ket and customer-oriented production by the country offices, Kristensen ex- the entire production process. In addition schedule. This means we organise opera- plains. “This means everyone has access Nordzucker sells to the animal feed, this also involves tions with a view to our customers – where to the same information. Whether it’s around 20 per cent overseeing the stevia products from we can produce and store what, and from booking freight, informing plants, ware- of its sugar via retail. Nordzucker subsidiary NP-Sweet, as well where we can serve which customers houses or customers – these steps can as Fibrex – the gluten-free baking ingre- best. And of course which internal trans- then be processed automatically.” dient made from sugar beet fibres – and fers need to be done first because not naturally, the key player: sugar! More all of our plants manufacture every one Continually adjusting processes than 250 different sugar products and of our products.” The team also includes specialists in even more specifications tailored to in- system maintenance who continually dividual customers therefore find their Presence at gateways to the market adjust the Nordzucker supply chains in ways to food processors and retailers via “Our customers set great store by hav- line with changing market and customer cost-efficient routes. Around 2.5 million ing a local, personal contact,” empha- requirements. “Standardising work pro- tonnes of sugar products are stored and sises Kristensen. This is provided by the cesses further” is another task Kristensen transported by Nordzucker in accord- customer service teams – small, dedicated wants to complete in order to further ance with market requirements and country teams with whom Nordzucker simplify and automate the logistics process customer orders every single year. � manages the key market interfaces and at Nordzucker. “After all, we make a living sdp makes it easier for customers to clarify from forward thinking,” he states. � sdp any issues regarding their deliveries.

Akzente December 2014 11 | 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, sus- Responsibility required to only process raw materials that have tainable sugar company. That’s why Sugar plants, in South America or Africa been produced in line with defined sus- we want to know as much as possible for instance, generally deliver the sugar tainability standards.” about the cane sugar plants we buy our they produce to large wholesale ware- “Of course, our customers ask us raw cane sugar from,” says Iver Drabæk, houses at the nearest port. From there, very detailed questions about where the Head of Sustainability, describing the raw sugar is transported by ship to sugar which we produce and sell comes purchasing process at Nordzucker. Nordzucker and subsequently refined from, how it is grown and how it is pro- “In this context, raw sugar purchasing at Chełmża, Poland, or Porkkala, Finland, cessed. Because at the end of the day, must follow our guidelines, the Code before being resold. “Our key accounts we are responsible for our products. That of Conduct and the Supplier Code of in particular have staked their reputa- is why we see it as our responsibility to Conduct,” says Drabæk. tions on acting responsibly and by 2020 review processes at our own plants and

12 those of our suppliers, to ensure that rights conventions, e.g. in relation to our standards and those of our customers child labour. We audit these standards are complied with.” For Marion Schaefer, and address any failings or potential for Head of Quality Assurance, this path entails improvement.” Key issues also include regular audits and sampling: “Once we the environment and human rights, start making repeated purchases from a labour law and the quality of cultivation cane sugar producer, we audit its plants methods, production and transport. An according to a fixed schedule and defined audit of farmers, plants and the port standards and frequently also with the often takes four days. At the end of an The harvested sugar beet awaits processing. help of an experienced consultant who audit, the results are defined in a report is familiar with the local situation and and corrective measures are documented. applicable legislation and who speaks Suppliers are obliged to implement these the language. We help our suppliers to measures and to report back on them. improve by explaining our own targets If necessary, compliance is reviewed by and telling them what is important for means of follow-up audits. If no measures Why are imports us,” explains the quality manager. have been implemented or the changes necessary? are insufficient, Nordzucker will no longer A multifaceted auditing process purchase goods from these suppliers. Within the scope of the 2006 reform, The audits look at the entire chain, from “We take our customers’ aim of the EU reduced overall production quo- the growers through to production and sourcing all raw materials from sustain- tas for sugar for use in food by approxi- transportation. “Of course this sometimes able production by 2020 very seriously mately 6 million tonnes, some 30 per involves other issues than those that might and also see that developments are pro- cent of the volume of quota production. occur in Europe. The issue of social gressing. It is important for us to support The EU has thus gone from being a net standards, for instance, naturally has a our customers’ efforts and to advance exporter to one of the largest net im- different status in the least developed major initiatives such as SAI (July edition porters of sugar on the world market. countries (LDC) as Nordzucker rejects of Akzente, page 12) and to promote This means that the EU is now only able all forms of forced labour and demands standards such as Bonsucro,” emphasises to meet 85 per cent of its own demand. compliance with international human Iver Drabæk. � tsd 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, justi- fied 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 At the port of Gdynia: total. � a ship loaded with raw Alexander Sick sugar.

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 13 | 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 The beet market involves competition for the farmer’s land under prices and by challenging negotiations with our customers. cultivation. In the long term, the crops which bring rewards One factor behind this is the surplus in the EU which is attrib- will be cultivated. The price of beet therefore hinges not only utable to the conversion of non-quota sugar to quota sugar and on the price of sugar, but is even more dependent on the to additional imports into the EU. We are also experiencing prices of alternative crops. We are therefore working on models the first effects of the expiration of the quota system in 2017. for our contractual relationships with our farmers so as to offer The changing market environment shows that Nordzucker an adequate level of planning certainty in terms of the contri- must become more flexible, with an enhanced market and bution margins for possible alternative crops and to ensure that customer focus. This means not only adopting a stronger cus- the farmers can benefit from success on the sugar market. From tomer and sugar market-based perspective, but also a strong- 2017, we may have various contract models. Our farmers will er understanding of the beet market as a market, and adjust- be able to select from these in line with their personal level ing to the new situation so that both Nordzucker and our beet of risk-taking propensity. In this way, we want to offer our farmers can continue to operate in an attractive environment. farmers greater decision-making opportunities. In peripheral Our advantages on the sugar market include local pro- regions, we may also face a challenge from our competitors duction, short transport routes and high sustainability stand- in relation to beet. We must be able to react to this. ards. This carries weight with our customers. But as I said, the A core part of our philosophy is that our beet farmers sugar market is undergoing a period of change. Together with are our partners. A beet farmer is irreplaceable. They are no our beet farmers, we intend to ensure that beet cultivation ordinary supplier. Direct contact with the farmers via the remains attractive in a transformed and more volatile market, beet offices in our plants and local cultivation advisers remains even without a quota and without a fixed minimum beet very important to us and will become even more critical in price. future.“ �

14 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: ARGE NORD Our beet farmers already fulfil stringent require- For research into new methods, trials generally ARGE NORD is German ments in terms of sustainability. Comprehensive involve three different levels at our company. First interest group which advice and legal requirements ensure responsible of all, the employees in our beet offices carry out stands for Arbeitsge use of resources for crop protection as well as initial trials. ARGE NORD is subsequently involved meinschaft zur För fertilisation and soil preservation. Our 20 · 20 · 20 for intensive testing in precision trials and to deter- derung des Zucker programme for increased yields from beet culti- mine the practical benefits of these new methods. rübenanbaus in Nord vation is a good example of how we can achieve We have increased the personnel resources of deutschland e.V. This further sustainability improvements in the area ARGE NORD in order to step up the volume of interest group carries of cultivation. Increased cultivation efficiency will these trials. The Institute of Sugar Beet Research out a large number of field tests in Northern automatically lead to improved use of resources in Göttingen carries out scientific assessments for German sugar beet and safeguard the profitability of beet cultivation. a variety of topics. For example, it is currently in- growing areas. For Our customers are increasingly interested in vestigating the precise effects of the equal-space example, these tests sustainable production techniques in agriculture. narrow-row method and the interactions result- cover the equal-space This means that we are increasingly required to ing from nematode reduction by means of catch narrow-row method demonstrate the sustainability of our beet culti crops and various beet varieties. or herbicide tests. vation, which entails us documenting this with One of the key advantages of beet cultivation Nordzucker AG and numbers and facts. The future challenges there- is the role played by sugar beet in crop rotation. It eight sugar beet farm fore do not relate to changes in beet cultivation. is therefore important that our cultivation advisers ers’ associations in The aim is primarily to make sustainability at communicate which crop types are suitable for crop Schleswig-Holstein, Nordzucker transparent, throughout the entire rotation and which are not. In particular, we are Lower Saxony, Meck value chain from the farmer to the customer. � studying maize, whose cultivation as part of a crop lenburg-Western bdl rotation with beet causes problems. Research pro- Pomerania and Saxony- jects on the issue of crop rotation are therefore very Anhalt are members important for us. � bdl of ARGE NORD.

Modern technology and competent local advice.

Akzente December 2014 15 | 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 Focussing on high output and campaign were able to start on time in Nordzucker’s Almost all Nordzucker plants had an excellent start to the cam- growing regions. After three good to very good harvests, paign and were quickly running at full output. The start-up phase many of Nordzucker’s growing regions are expecting yields took a little longer at the Danish Nakskov plant. The production that will break all previous records. The 2014 harvest will managers unanimously declared excellent juice quality, clean keep most of Nordzucker’s 13 plants working hard well into beet and very good sugar yields for all 13 Nordzucker plants. January 2015. Enthusiasm regarding the excellent progress “We achieved a stable, high level of processing very early on,” made in terms of yield remained muted, however, in light of confirms production manager Dr Michael Gauß, Senior Vice persistently low sugar prices. . President Production Central Europe. “The first few weeks of the campaign went extremely well for all five plants in North All of the beet has An excellent year for sugar beet Germany,” he says, praising the excellent groundwork by his been harvested in “Regarding the weather, 2014 was one of the best years we’ve teams and the exceptional quality of the beet. With a view to Northern Germany. seen for sugar beet,” says Nordzucker’s new Head Cultivation the fantastic harvest, Nordzucker Germany primarily invested Advisor, Dr Gerd Jung, who has been heading the newly estab- in compensating and supplementary measures. The repairs to lished Grower Relations and Agri Consulting department since silo 8 at the Uelzen plant were also completed quickly. This the start of November. “Scandinavia, Germany, Poland and Slo means that one of the two large silos at Uelzen is now com- vakia all had plenty of sunshine and sufficient rainfall was record- pletely back in use for the current campaign following the fire ed almost everywhere at the right time; from the early compact in June. Silo 9 will be fully operational again in time for the sowing to the straightforward harvest. Only the cultivation areas upcoming campaign. around the Polish Chełmża plant experienced longer summer droughts, which affected beet growth. With a Group-wide aver- Testing innovative technology in Örtofta age sugar content of around 18 per cent and average beet yield In Northern Europe, Nordzucker has continued to invest of 76 tonnes per hectare, Jung recorded sugar yields of over 13 heavily in energy efficiency and the ongoing optimisation tonnes per hectare for all beet supplied by the end of October. of product quality, Jesper Thomassen, Senior Vice President

16 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

Arlöv Nakskov Nykøbing

Uelzen Klein Wanzleben

Chełma

Nordstemmen Schladen Production Northern Europe, reports. Around EUR 20 million Opalenica was invested in the Swedish Örtofta plant alone, where the Clauen 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 corre- Trenčianska Teplá sponds 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 Nordzucker produces Danish plants, around 140 days for the Swedish plant and sugar in seven European with the Finnish plant in operation until mid-December. countries. Joachim Rüger, Senior Vice President Production Eastern Eu- rope, is also extremely happy with the start to the campaign While the harvest starting in mid-November is now almost in Poland and Slovakia. “After the harvest and beet deliveries complete, most Nordzucker plants still have the second half of around Trenčianska Teplá began grinding to a halt after sev- the campaign ahead of them. “We’re now focussing on main- eral days of heavy rain, all three plants are now operating at taining the high processing output across all plants until the full output.” A new decanter for juice purification at the Opal- end of January,” Gauß emphasises. “A 140-day campaign is an enica plant, the energy-efficient extension of the evaporation enormous challenge to all those involved,” he says, referring plant and the new wastewater treatment plant in Chełmża to the restrictions on driving HGVs at weekends in Germany. are all already showing very positive effects. Rüger expects a From 2014, there are no exceptions made for beet deliveries, 130-day campaign for the Trenčianska Teplá plant. The Polish which tests the flexibility of the plants when it comes to sup- plants will likely remain in production until around 10 January. plying raw materials. � sdp

Akzente December 2014 17 | PANORAMA |

Handling the transfer of knowledge 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 This simply reflects the fact that follow- The lack of specialists and the process age structure within their workforce. A ing the closure of plants due to the sugar of demographic change are increas- disproportionately large number of our market reform in 2006, we offered all of ingly important. Are you already colleagues will be enjoying their well- the affected employees under the age noticing the effects of this in your earned retirement in a relatively short of 55 a job at another plant, which many efforts to recruit well-trained em- period of time. Akzente talked with Axel of them accepted. This meant, however, ployees for the plants? Aumüller about the process of passing that we tended to hire middle-age em- on expertise, training and the particular ployees from other plants so that no young Not all that much, luckily. We are well- issues associated with working at a sugar personnel were recruited or permanently known as an attractive employer in the plant. taken on. We still stand by our decision regions where our plants are situated. to offer our employees these opportuni- We always have a large number of appli- Mr Aumüller, why are there so many ties at the time. But, as I already noted, it cants for apprenticeships and vacancies. employees at so many plants who are does mean that our age structure is unbal- Nonetheless, it goes without saying that due to reach retirement age simulta- anced. Nonetheless, we have of course you cannot simply replace 30 or more neously in a few years’ time? provided training for young people, but years of experience in the sugar indus-

18 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 To ensure that no a plant during the campaign is very bond with the company which goes be- lenges to learn from. Our people want knowledge is lost, special. Can you describe it? yond the norm. For instance, you don’t to ensure that everything works the best Nordzucker man- simply go home if the plant has ground it possibly can. This commitment to the ages the transfer Working at a sugar plant is more than to a halt and you’re needed – that sort plant is supported by an extraordinary of expertise. just a profession – it is a vocation. The of thing is more or less self-explanatory. sense of shared identity. This motivates employees at our plants are highly dedi- That’s why working in the sugar industry our employees and helps them to cope cated. For the majority of them, it is not is so exciting, because it never gets bor- with tough challenges. � just a job. They frequently have a strong ing. There are always new technical chal- Interview conducted by Bianca Deppe-Leickel

Uelzen: silo 9 will remain in place

The Uelzen plant can breathe a sigh of with the sealing. As soon as the roof has relief. A good four months after the fire been put back on to the silo, we can start at silo 9, it has now been confirmed that repairing the internal walls. Only once this the shell of the silo can be repaired. It is has been completed can the conveyor hoped that the silo will therefore be ready technology and a new belt bridge be for use again by the next campaign. fitted,” said the manager in charge of the project, Dr Thomas Mörle-Heynisch, The emptying of the silo was completed outlining the next milestones. In the mean- at the end of October. Static tests carried time, experts from our insurer and the out directly on the silo’s shell then pro- criminal investigation department are vided the hoped-for all-clear. The next investigating the causes of the fire. They steps to get the silo up and running have not yet released their findings. again are already underway: the renewal After repairs to the roof, the adjacent Work on the ring of the ring beam at the upper end of the silo 8 could be filled with sugar from the beam proceeds silo should hopefully make it possible to current campaign starting back at the possible thanks to the cooperation of our promptly. replace the roof before winter sets in. beginning of October. The remainder of suppliers, to whom we would like to “We are trying to take advantage of the the work on the roof is having no impact express our sincerest gratitude and appre- good weather conditions as much as on operations. “Work on silo 8 has been ciation,” Dr Mörle-Heynisch continued. � possible in order to make quick progress completed on time. This has only been tsd

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 cur- The current sugar market regime will sufficient number of customers on rently very low. What is the outlook? expire in 2017. Is this already having the world market who will purchase an impact on the sugar market? non-quota sugar at acceptable prices? Prices are shaped by supply and demand. This means that the volume of Yes, very much so. At the moment, the The WTO export limit will continue until supply will fall following a low-price low price of sugar in our EU markets is 2017. This means that exports are only phase and that demand will rise, trig- predominately being shaped by a surplus possible to a very limited extent. We are gering higher prices. The only difficulty – which also reflects high import volumes. therefore lobbying the European Com- is in predicting when the tide will turn, But at the same time – and this is a sign mission to approve the necessary export and the extent of this trend. Moreover, of things to come in 2017 – competition tranches ahead of schedule. prices are also influenced by several fac- has also significantly increased. We also expect the European tors such as the effects of the weather Commission not to permit any addition- which are very hard to predict and can- It looks like the 2014/15 beet har- al imports – above and beyond existing not be planned for. vest will break all records. Is there a free trade agreements – and not exacer-

20 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 No. 5 and New York No. 11. This natu- The market will inevitably change as a further. rally requires active trading to ensure result of the expiration of the quota sys- compliance with applicable obligations. tem. This process is already underway. Will Nordzucker’s market share get It will also necessitate changes in pric- We must be prepared to exploit the smaller? ing mechanisms in the value chain, in- resulting opportunities. We must keep cluding the supply chain. However, I our ear to the market, more so than pre- We do not believe that it will, at least am not sure whether there will be suf- viously, and offer an attractive product, not in the long term. It is our express ficient liquidity for a future within the service and price package for our cus- goal to expand our market share in the EU. In my view, hedging opportunities tomers. The question which we must EU after 2017. via the world market are more likely. repeatedly ask ourselves is this: how do we deliver benefits for our customers, What is your view of exchange Nordzucker has committed itself to and how do we ourselves profit from trading of sugar after 2017? improving its market and customer this? � focus. Why is this important? Interview conducted by Bianca Deppe-Leickel After 2017, we are fairly likely to see price models which are based on inter- The market is becoming more volatile nationally quoted prices such as London 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, Wash- ington State and Oregon. � nt

Price support, marketing quotas and import tariffs

Sugar market regulation, the American way

Around 11 million tonnes of sugar are 1) Price support through loans (“do- 24.09 US cents per pound of white sugar consumed every year in the United States mestic price support”), 2) marketing from beet, while the average raw sugar of America. By comparison, the equiva- quotas and 3) import tariffs. “Domestic price in the USA (New York No. 16) in lent figure for the EU is approximately price support” is provided by the US 2014 is around 24 US cents per pound. 16.9 million tonnes per year. As in many Department of Agriculture, the USDA. “US The USDA offers similar loan programmes other countries – and for the time being sugar producers can apply to the USDA for other agricultural products. However, in the EU too – the sugar market is sub- for loans with a term of nine months. a particular feature of this loan programme ject to government regulation in the USA. However, this is subject to the condition is that these loans are extended to the In total, every year the American sugar that sugar producers undertake to make sugar producers instead of the raw ma- industry produces a total of around 7.6 payments to their sugar cane and beet terial farmers, as is the case with other million tonnes of sugar from sugar beet farmers which are proportionate to the programmes, says Möller. The sugar which and sugar cane. This represents roughly value of the loan. After nine months, the USDA receives under this programme 70 per cent of gross national annual producers can opt to redeem the loan is mainly resold for production of bioeth- consumption. To cover this volume, the or to supply the USDA with sugar in the anol under the Feedstock Flexibility Pro- country also imports around 3 million value of the loan. This is attractive for gram (FFP). tonnes of sugar on average. Which meas- producers whenever the sugar market ures has the US Department of Agricul- price is lower than the loan rate and Quotas for domestic sugar production ture enacted to regulate the sugar mar- thus represents a price guarantee for As well as the price support provided ket? A glance across the Atlantic: producers,” says Dr Thordis Möller of by this loan programme, the agriculture Nordzucker’s Economics division. The ministry also imposes marketing quotas. The US sugar market is supported by loan rate is currently 18.87 US cents per These quotas regulate sugar production three different political instruments: pound of raw sugar from sugar cane and in relation to consumption. This is similar

22 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 on between states which produce sugar the EU: using a tariff rate quota, at the market regime. The agriculture ministry from the same raw material. So a state start of the financial year, the ministry requires approximately 85 per cent of which produces sugar from sugar cane determines how many million tonnes sugar consumption in the US food sector can take on a portion of the quota of of sugar per year may be imported at to be covered by domestic sugar produc- another state which also produces sugar reduced customs tariffs. The US Depart- tion. “The USDA specifies how many from cane, but it cannot do so for a state ment of Agriculture regulates the sugar million tonnes of sugar may be market- in which beet is used for sugar produc- market in the USA through these and ed throughout the USA. However, since tion,” the agronomist continues. One other measures, so that the conditions sugar is produced from both beet and similarity in relation to measures in the for the sugar industry in the USA are cane in the USA, the USDA has specified EU relates to the quota system for sugar analogous to those in the EU, as things a ratio of 53.35 per cent (beet) and 45.65 which may be sold for consumption: presently stand. On the other hand, the per cent (cane). Accordingly, 53.35 per “Within its corporate Group, Nordzucker abolition of quotas after 2017 will lead cent of this marketed sugar must be is permitted to sell a certain volume of to heightened competition in the EU. produced from beet and 45.65 per cent sugar for the food sector in the EU. This However, import tariffs will remain in from cane. These quotas are apportioned is what we now refer to as quota sugar. force in the EU even after 2017. � nt to the sugar-producing states and then The US producers have a similar quota. within these states to individual companies,” Möller explains. If a state is unable Import tariffs also in force in the USA to meet its quota – e.g. if its harvest is The third measure which the US Depart- worse than expected – the remainder ment of Agriculture imposes to regulate of its quota is passed on to another state. the market is import tariffs: here too, “However, this quota can only be passed 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 When you think of sugar production, Service Centre the first things that spring to mind are The Nordzucker Service beet fields, harvesters and steam emerg- Centre (NSC) handles ing from plant chimneys. However, the the necessary work silo does not mark the end of the pro- steps once the silo has cess – far from it, in fact: this is where been loaded: emptying everything really gets going. “At the the silo, transporting Nordzucker Service Centre, we’re respon- the sugar for sieving sible for ensuring that the sugar gets to (at Nordzucker’s Ger where it needs to be: to the customer. man plants, the NSC We want to serve our customers. ‘We also handles sieving), can’t’ isn’t something we understand,” loading (either loose says NSC director Dr Thomas Mörle- on lorries or packaged Heynisch on his way from the plant in small or big bags), gates to his office – the steam rising refining to produce icing sugar or preserv above the roofs of the plant is clearly ing sugar and storage visible in the background. of the packaged mer chandise. 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 There is a lot going on: the Uelzen Service Centre supplies customers from the food industry to retailers. 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,” of high turnover of vehicles that we are goes wrong. Everyone knows where Mörle-Heynisch explains. After all, there experiencing at present – up to 60 lorries their own machine gets ‘sensitive’ and are many regulations and requirements a day. In this situation, people have to what to do to prevent it from grinding to that his staff have to follow: “It all starts be accurate in their work. You have to a halt,” Mörle-Heynisch explains. This is with an employee having to check that motivate your staff for that,” stresses something that’s not allowed to happen, the lorries that arrive here have been Mörle-Heynisch. not least because it will rip the brown pa- disinfected and sealed. They need to per used for the outer packaging. Never- check the consignment note and the Safety has top priority theless, “we have the power to stop a delivery hoses in the silo before loading While one lorry after another is seen to machine,” stresses the sugar technologist. the correct type of sugar,” lists Mörle- and loaded, in the section of the NSC This is a good thing, he says, because Heynisch. When loading the lorry, his devoted to packing bags of sugar for re- “every package gets a batch number. The employees must comply with regulations tail trade, hundreds of little blue bags of employee at the machine must check that governing load distribution on the axles sugar are conveyed away from the filling this is the case. Should the number not be and take a sample of the loaded goods, stations to be packaged in brown paper printed, the employee needs to intervene before finally completing the loading in ten-pack units destined for the shops. in the process, prevent an unnumbered documentation. No mistakes can be “Here, everyone needs to know ‘their’ package being sent out and fix the cause made when filling out the delivery machine precisely, monitor it and call of the problem as quickly as possible to documents. “And all this with the kind the mechanic in good time if something enable production to resume.”

24 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 ensure that all customers are supplied Sugar may always be just as sweet, but with the blend that meets their specifi- one type of sugar is not quite the same cations. “However,” Mörle-Heynisch as another. For example, there’s fine explains, “the colleague in question also sugar and then there’s extra-fine sugar. needs to make sure that, as far as pos- The difference lies in the size of the sible, an equal amount of sugar of the small sugar crystals. various different sizes is taken out of the These grow to different sizes dur- day tanks. This is because we need Display boards are put together for special promotions in the ing the crystallisation process and are enough storage capacity for the individ- retail trade. These enable supermarket customers to find, for separated out into fine, medium and ual sizes in the day tank, but we also instance, sugar specialities for their Christmas baking and coarse sizes when they are sieved. The mustn’t run out of any particular size. In delicious recipe ideas at a glance. These boards are constructed different sizes are stored in what are other words, we have to have all crystal manually on quarter pallets in the Service Centre, then prod- known as day tanks. As customers in the sizes in stock. The colleague therefore ucts and flyers are added before the boards are packaged in food industry order highly specific makes sure that we have an even protective film. blends of the different sizes – custom- throughput of sugar in the station so ised for use in the production of confec- that we are always able to produce a tionery, for instance – the employee at supply and serve our customers.” � nt the central control console needs to

Akzente December 2014 25 | CLOSE-UP |

“We have come to appreciate 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 Swe- Karin Bodin, the fifth generation of the century-old traditions of the Sami people. den, Polarbröd bakes bread and bread founder’s family to head up the business, The bread is baked for a very short time rolls following old Sami traditions. Sugar which was founded in 1879. only before being immediately frozen and syrup from Nordzucker have an “Sugar and syrup act as natural and available for distribution straight away. important role to play. preservatives for the bread. As Polarbröd doesn’t use any artificial preservatives, our Reindeer add value Baking according to a long-standing bread is always fresh, with only a short The company now owns three industrial tradition – this is how Polarbröd has shelf life – something that is entirely bakeries in the northernmost part of made a name for itself as one of Sweden’s natural with this traditional method of Sweden. The largest one, in the town largest bakeries. Virtually all ingredients baking,” says Karin Bodin. of Älvsbyn, is a mere stone’s throw from are sourced from Sweden, and most are Among the most popular products the Arctic Circle. entirely plant-based. Among the most are the ultra-thin flatbreads which Polar- Karin Bodin explains: “When you’re important are sugar and syrup. bröd makes in soft and hard versions. so far North, transport is obviously a “Sugar and syrup help ensure the The company has been a leader on the challenge. But it is this location that fluffy texture of our bread and enhance Swedish market for a long time now gives us the essence of our brand. The the characteristic flavour of each type with these flatbreads. Much of the prep- Norrland region is synonymous with of bread,” explains Managing Director aration method owes its origins to the fresh air and unspoilt nature – and this

26 Based in the Swedish town of Älvsbyn, Polarbröd is a family- run 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 strong for many years. As well as white the country”, says Karin Bodin. sugar and syrup, Polarbröd also buys Facts and figures It was her grandparents who, in Fibrex, the dietary fibre product that 1972, chose Polar as part of the compa- gives certain breads their characteristic Polarbröd AB ny’s name and a reindeer as its logo, sym- texture. Over two-thirds of the goods l Revenues of around 840 million Swedish bolising the pride they felt for Norrland. are transported to Polarbröd by rail, Crowns (91 million Euros) “We still convey this pride in our brand with the rest travelling by lorry. l Produces around 39,000 tonnes of bread communications to this day, and this form Karin Bodin says: “We have come every year of communication is also key to Polarbröd’s to appreciate Nordic Sugar as a manu- l 380 employees success in our main export markets, Nor- facturer of high-quality products from l Market share in Sweden: way and France, where the image of a raw materials grown and processed in soft flatbread 61 per cent faraway, pristine land has positive connota- Sweden.” This makes it clear to us that and hard flatbread 56 per cent tions,” Karin Bodin explains. our supplier, like us, is taking responsi- Three large-scale bakeries in Omne, bility for a sustainable future.” � Bredbyn and Älvsbyn in the Norrland region Partnership with Nordic Sugar Ulrik Larsen Polarbröd’s partnership with Nordzucker www.polarbrod.se subsidiary Nordic Sugar has been going

Akzente December 2014 27 | SWEET STORIES |

Baking for festive celebrations SweetFamily and Dansukker enhance Christmas baking

For many people, baking cookies is as oured chocolate rings, they were a firm believed to have been prepared with much a part of Advent as the smell of fixture of the festive spread and Christ- sugar and spices – both very expensive fir trees, burning candles on the Advent mas coffee time at my grandparents’ ingredients at the time – to commemo- wreath or – the most familiar – stressful house. My memories of this time are rate the birth of Jesus. These precious trips to the shops for Christmas presents. reawakened whenever I go into the commodities were then distributed to kitchen between the first day of Advent the poor. To this day, we bake during My grandmother, for instance, used to and just before Christmas to mix flour, Advent, and this tradition exists across bake all manner of different things such sugar, almonds and eggs, knead a dough, Europe. Scandinavian baking often uses as cinnamon stars, “black-and-white” shape biscuits and bake them, while the syrup, which Nordzucker sells in Northern biscuits and crescent-shaped vanilla kitchen gets warmer and warmer. Europe under the Dansukker brand. Here biscuits. They would be kept in square The tradition of making biscuits at are two recipe ideas: � nt silver tins and brought out on Christmas Christmas goes back a long way. Some Day. Alongside ruddy-cheeked apples, people think it has its origins in medieval “Domino” chocolates and brightly col- monasteries: delicious biscuits were

Almond diamonds Ingredients: 180 g brown sugar 200 g whole blanched 150 g honey almonds 1 tsp ground cinnamon 200 g whole hazelnuts 1/2 tsp ground cloves 200 g dried figs 1/2 tsp ground ginger 100 g candied orange peel 1/2 tsp ground nutmeg 100 g candied lemon peel 50 g butter 60 g flour 2 tbsp 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.

28 Dizzy biscuit lollipops

Brown sugar – do you know the difference?

Sugar is a versatile specialist. With our SweetFamily and Dan- sukker 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 Ingredients: Preparation: desserts. If you want to make especially fluffy biscuit or cake 270 g plain flour Preheat the oven to 175 °C. Mix the ingredients dough for tarts or fine cakes, why not try SweetFamily’s finest 40 g Dansukker Superfine together until they form a dough. Place half of sugar? The crystals in this sugar are extra-fine and evenly sized. the mixture in another bowl and add the red Sugar or If, for example, you want to bake a spiced almond biscuit or food colouring. Do not colour the other half. 60 g Dansukker Icing Sugar another type of dark biscuit with a distinct note of caramel, Wrap the doughs in cling film and leave them 15 g Dansukker Vanilla look no further than SweetFamily brown sugar. This brown Sugar Fairtrade in the fridge for 15 minutes. sugar is a well-loved ingredient in recipes that use chocolate, 200 g butter or margarine Roll out both pieces of dough, preferably on almonds or other nuts. It gets its dark colouring from the addition 1 egg baking parchment, placing the red dough over of caramel, thus giving biscuits an extra-special aroma and an Red food colouring the light-coloured one. Carefully roll them to- appealing dark colour. Another dark sugar, but unlike Sweet- Hundreds and thousands gether from the long end and roll them in the Family brown sugar not obtained from sugar beet, is Sweet- Sticks hundreds and thousands. Leave the dough in the fridge for 15 minutes before cutting it up. Family cane sugar. Produced from sugar cane, this sugar keeps Cut the dough into discs, about 0.5 cm across, its golden-brown hue because it is unrefined. � nt and, if desired, place a stick in the middle. 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 Hano- ver on 2 and 3 October, Nordzucker joined Agravis and Deutsches Milch Kon- tor in demonstrating the variety of vocational training options available in the three companies in the agricultural and food industry. Stephan Weil, the Min- Harvest festival ister-President of Lower Saxony, was also able to see for himself in which regions the three companies have premises. � ed. 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 Exchange came onto the market 60 years ago. You aren’t familiar Visit from MEP Burkhard Balz with it? You must be!? The “Süßer Heinrich” is a glass On 17 October, MEP, Member of the European Parliament, sugar shaker with a metal lid Burkhard Balz visited company headquarters in Braunschweig. that has a little tube in the Christian Kionka, Head of Communications & Public Affairs, middle. An angled opening told the CDU politician about the challenges facing Germany’s in the tube ensures that the sugar industry as a result of the latest reform of the EU’s same quantity of sugar is dis- agriculture policy. Ralf Brunkow, Head of Corporate Finance, pensed into your coffee or discussed issues of relevance to Nordzucker arising from the tea with each shake. In other EU’s financial market policy with the MEP, who is a qualified words, a practical and hy- banker and lawyer and a native of Stadthagen. At the end gienic invention. The sugar of the meeting, Burkhard Balz returned to Brussels with shaker owes its name to its the call to prevent unfair competition, not just within the inventor, Heinrich Kurz from the German state of Hesse. It was EU, but on the international stage as well. � ed. his clever idea that put the “Süßer Heinrich” on tables in dining rooms and cafés in 1954, where it has remained ever since. � 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 Nor- dzucker, hosted major celebrations. Visitors to the farm included Frauke Heili- genstadt, 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 In late September, five associations from Nordstemmen were presented with a cheque for EUR 2,000 by Ines Büthe in her capacity as Chair- man of the association “Unterstützungskasse der Zuckerfabrik Nord- stemmen 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 Apple festival plant, their wives and surviving children in cases of need such as pov- erty, illness and death. As this form of social security benefit has now Friends Jam. Let’s share! 2014 been transferred to other systems within Nordzucker, the association had lost its purpose and decided to donate its remaining assets once In autumn, Nordzucker took part in the so-called Friends Jam, more to other associations in the local area that were still active. a welfare project in Lithuania that is all about apples, sugar and Donations were presented to the following associations: DLRG- large families. This project, set up last year by our subsidiary Nordic Ortsgruppe, Förderverein der Marienbergschule, GemeindeJugendRing, Sugar Kėdainiai in collaboration with Lithuania’s association for Motorsportclub/ADAC and the KOMM Nachbarschaftszentrum. � ed. 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.

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 Považský Cukor and SweetFamily Schneider visits Uelzen plant crowned Superbrands in Slovakia

The Finance Minister for Lower Saxony, Peter-Jürgen Our two brands Považský Cukor and SweetFamily have been awarded Schneider, and Nordzucker’s Chief Financial Officer, the title of Superbrands in Slovakia, which they can now hold for Dr Michael Noth, met at the Uelzen plant on 20 Novem- a year. “We’re proud that our customers and consumers trust us ber to discuss current developments on the sugar market and are aware of the responsibility and sense of obligation we feel and the mounting challenges which are emerging for the towards them,” said Ľubomír Fischer, Head of Marketing. company as a result. Dr Michael Noth thanked the Finance The Superbrands accolade is given to brands that have gained Minister for his interest in Nordzucker and outlined in his a reputation for outstanding quality within their business sectors talk the tense situation on the sugar market, which is cur- and provide benefits that consumers expect and appreciate. The rently characterised by considerable pressure on volumes, Brand Council, which is made up of experts from media, marketing in part as a result of imports, which in turn is leading to and communications as well as representatives from industry, evaluate significantly reduced income at Nordzucker. Finance Min- a shortlist garnered from a wide range of brands in Slovakia, with ister Schneider emphasised the importance of the agricul- only the highest-ranked ones being named Superbrands. The annual ture and food industry, particularly for the Federal State of “Superbrands Yearbook” offers insights into the success enjoyed by Lower Saxony. The Minister was then especially interested each brand by showcasing their history and their products and in the Uelzen site. “Industrial sites are very important to highlighting their biggest and most important achievements. us, as they provide employment and add value to agricul- Superbrands is an international programme that was founded tural regions,” he said. � ed. 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 per- son at height and extinguishing a burning wheel loader ignited by a cable fire. Some 115 firefighters were on the scene for this drill. life conditions.” With this exercise, the plant is also answering its Erich Strelau, who is responsible for fire protection at the plant, had own questions and those from customers regarding safety and devised it together with Günther Becker, head of the Hohenhameln hazard prevention. “The drill is also about testing out and improv- fire service. “In an emergency, we believe it’s crucial for the fire service ing the lines of communication between managers and the emer- to know the site like the back of their hand,” said Erich Strelau, gency services that are deployed. Building on general feedback explaining the purpose of the drill. “It was something new for us to following the drill, we then want to work with the fire service to test this out during the campaign. For us, it was particularly impor- help make our approach to damage prevention even more efficient,” tant to largely keep the drill a secret, enabling us to test how Erich Strelau said. His initial conclusion in the evening was very quickly the firefighters would arrive on the scene under near real- 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 rec- ommended. 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 life- style. 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 Award has invested in two new energy-efficient facilities in its Örtofta plant. The new facilities will cut the sugar plant’s Klein Wanzleben plant receives energy consumption by around 150,000 MWh per year, cor- responding to around 30 per cent of the energy required by “SchuleWirtschaft” prize the plant during the campaign. This reduction in energy consumption would be enough to heat around 7,500 single-family Nordzucker was awarded the “SchuleWirtschaft” [School Economy] homes for a year. At the same time, carbon dioxide emissions prize in Berlin on 18 November 2014. The Nordzucker plant in are being reduced by around 32,000 tonnes per year. These Klein Wanzleben won third prize among medium-sized companies solutions are the result of investments worth 215 million Swedish in the German-wide competition. The prize is sponsored by the Crowns, making them the largest of their kind seen in Sweden’s German Federal Ministry for Economic Affairs and Energy and rec- sugar industry for twelve years. ognises companies which are especially committed to providing careers advice and easing the transition between school and the Environmental award for sustainable energy-saving solutions world of work. Not unlike Nordzucker’s Klein Wanzleben plant, As well as the 2014 “E-Prize”, the Örtofta plant also won the which has been running flagship projects such as “girls in industry” environmental award that is presented by Eslöv local authority and “work experience days for prospective trainees” for many and the south Swedish newspaper Skånska Dagbladet. The years now. A total of 89 companies applied for nine prizes across award was in recognition of a long-standing and ambitious three categories. � ed. 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.

Akzente December 2014 33 | 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

34 | CLICKED ON |

A look online at Nordzucker and SweetFamily … themed area guides packed full of tips

SweetFamily website with a new look suitable occasion, allowing you to get a Anyone who searches www.sweet-family.de quick and easy overview. And to make for delicious recipes and inspiration or in- sure you can quickly find what you’re formation on Nordzucker’s SweetFamily looking for, the search function on the products will undoubtedly already have new SweetFamily website has been im- come across the brand’s redesigned site. proved and made more prominent. Over Since September, www.sweet-family.de time, the system learns from your input. has presented a fresher and more up-to- It can even spot typos after a while and date face to its visitors. At the heart of will make various suggestions for the user the new design are pictures of recipes to choose from. designed to entice people to try them out. Here’s all you need to know about Themed areas provide extra guidance our new site. In the themed area guides section, the site offers step-by-step instructions and tips Focus on recipes and tricks for making dough, for instance. … now also optimised for mobile access To provide inspiration for bakers, for in- From selecting the right kitchen utensils stance, new delicious recipes take centre through to the ingredients list and the indi- stage. The recipes tab, for example, con- vidual recipe steps complete with pictures, tains several seasonal recipes, each with a here you can learn many new things, in- large photo. One click takes you from the cluding what you have to do to make your picture to the recipe itself. Recipes can be cake mixture extra fluffy. The clear pictures sorted by category, preparation time or and short texts are easy to follow.

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, [email protected]; 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.

Akzente December 2014 35 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: You can find more tips and 1. For the dough, pour the beetroot juice minutes until light brown. To make the coa- delicious recipes under: in a pan and boil off to leave about 2 ting, mix up one teaspoon of beetroot juice tablespoons. Place the rest of the dough with the egg white in a bowl. Add Sweet- www.sweet-family.de ingredients in a bowl and mix together Family coarse sugar (Hagelzucker) and stir well by kneading. Cut off about one third together until the colour of the mixture is of the dough and knead together with two uniform. teaspoons of beetroot juice. Wrap up both 3. Squeeze the cherry jam through a sieve pieces of dough in aluminium foil and leave into a bowl. Add SweetFamily fine sugar, in a refrigerator for at least 6 hours. Preheat and bring to the boil once. Once the the oven to 160 °C fan-assisted, and cover biscuits have cooled down, drip the warm two baking trays with baking paper. jam onto the biscuits, and dust with the 2. Knead the two pieces of dough until they coloured coarse sugar. are smooth, and shape each into a roll (30 cm long). Intertwine the two rolls, dust Preparation time: with flour, and roll out into a sheet about approx. 45 minutes (not including 3 mm thick. Cut out your favourite biscuit baking time and the 6 hours shapes, place them on the baking tray, and resting time in the fridge) bake in the preheated oven for approx. 9