The closure of a historic factory comes with bad news for Danish organic sugar production.
Økologisk NuIt has been described as catastrophic for the local community that the sugar factory in Nakskov is closing after 144 years, and this description also fits well with organic sugar production. Along with the announcement about the Nakskov factory, Nordic Sugar has also announced that the company will cease production of organic sugar based on sugar beets after the 2026 campaign. The company stated this in a brief message to Landbrugsavisen. The decision was made because, after nine years, it has not been possible to achieve a positive economic return or ensure the planned growth in production volume, which was a prerequisite for creating sustainable organic sugar production in Denmark, the message says. Since 2018, Danish—and later also Swedish—organic farmers have been able to grow sugar beets for Nordic Sugar, and the area has grown from about 500 hectares in the first years to nearly double that now. Affecting up to 150 employees Nordic Sugar, which is part of the German Nordzucker group, experienced a significant decline in revenue in the latest financial year, ending with a net profit of 84 million DKK compared to 565 million DKK the year before. Revenue was mainly affected by lower sales prices. However, the planned closure of sugar production in Nakskov does not change Nordzucker’s commitment to Denmark. Going forward, the company's sugar production in Denmark will be concentrated at the facility in Nykøbing, while the Nakskov plant will serve as a packaging center for sugar. The closure of production in Nakskov is expected to affect up to 150 employees. "Our focus now is on helping the affected employees in Nakskov prepare for the upcoming production campaign at the facility, while also supporting them when it becomes time to transition to other jobs elsewhere afterward. In the coming days and weeks, we will engage in constructive dialogue with the local municipality and employee representatives to find the best possible solutions for as many of our employees as possible," says Jannik Olejas, CEO of Nordic Sugar Denmark, in a press release.
It has been described as catastrophic for the local community that the sugar factory in Nakskov is closing after 144 years, and that description also fits well with organic sugar production.
At the same time as the announcement about the factory in Nakskov, Nordic Sugar has announced that the company will cease the production of organic sugar based on sugar beets after the 2026 campaign. The company states this in a brief notice to Landbrugsavisen.
The decision has been made because, after nine years, it has not been possible to generate a positive economic return or ensure the planned growth in production volume, which was a prerequisite for creating sustainable organic sugar production in Denmark, the announcement states.
Since 2018, Danish—and later also Swedish—organic farmers have been able to grow sugar beets for Nordic Sugar, and the area has grown from about 500 hectares in the initial years to almost double that now.
Affects up to 150 employees
Nordic Sugar, which is part of the German Nordzucker group, has experienced a significant decline in revenue in the latest financial year, ending with a net profit of 84 million DKK compared to 565 million DKK the year before. The revenue has been particularly affected by lower sales prices.
The planned shutdown of sugar production in Nakskov, however, does not change Nordzucker's commitment in Denmark. Going forward, the company's sugar production in Denmark will be concentrated at the facility in Nykøbing, while the Nakskov plant will serve as a packaging center for sugar.
The closure of production in Nakskov is expected to affect up to 150 employees.
"Our focus now is on helping the affected employees in Nakskov prepare for the upcoming production campaign at the facility, while also supporting them when the time comes to transition to other jobs elsewhere afterward. In the coming days and weeks, we will engage in constructive dialogue with the local municipality and employee representatives to find the best possible solutions for as many of our employees as possible," says Jannik Olejas, CEO of Nordic Sugar Denmark, in a press release.