# Suedzucker expects to raise its sugar prices again next year
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-23
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Europe's Largest Sugar Producer Set to Increase Prices
Meta Description: Suedzucker plans to increase sugar prices due to soaring energy costs and elevated input costs for sugar beet, impacting food staples and processed foods
URL: https://financedigest.com/suedzucker-expects-to-raise-its-sugar-prices-again-next-yearhtml

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By Maytaal Angel

LONDON (Reuters) -Europe’s largest sugar producer Suedzucker is set to bump up sugar prices again next year as energy costs remain high and input costs for items like sugar beet are also elevated, chief executive Niels Poerksen told Reuters.

The news of further price rises for a widely-used food staple like sugar comes as European policymakers scramble to try control inflation and curb a cost of living crisis.

In some areas, increased [costs are still putting pressure](https://www.financedigest.com/factbox-global-banks-take-axe-to-jobs-as-cost-pressures-mount.html "Factbox-Global banks take axe to jobs as cost pressures mount") on the margin. We will therefore have to implement further price increases [next](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year") year,” Poerksen said on the sidelines of an International Sugar Organisation seminar in London, referring to sugar prices and also to processed foods like pizza and ‘functional’ or health food ingredients like isomalt.

EU sugar prices on the spot market are already at record high levels – nearly three [times those seen a year](https://www.financedigest.com/why-the-new-year-is-the-best-time-to-start-your-dream-tech-business.html "Why the New Year is the best time to start your dream tech business") ago – following extreme weather and a surge in energy costs, forcing confectioners to consider production cuts.

Sugar production is among the most energy-intensive industries and is especially reliant in the European Union on gas, [prices of which have soared this year as key producer Russia](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") has sharply restricted supply.

Earlier this month, Suedzucker, which has a range of non-food interests including biofuels, said it [expected profits for the year](https://www.financedigest.com/philips-expects-to-reach-recall-settlements-this-year.html "Philips expects to reach recall settlements this year") to end-February 2023 would be nearly twice as high as a year ago as higher sugar prices would compensate for rising energy and raw materials costs.

Poerksen said sugar consumption had recovered to [pre-COVID levels](https://www.financedigest.com/foreign-tourism-to-portugal-surpasses-pre-covid-levels-in-july.html "Foreign tourism to Portugal surpasses pre-COVID levels in July") despite efforts to reduce use of the sweetener in foods on health grounds. He added there are many other uses for sugar, like ethanol.

In terms of supply, Poerksen doesn’t expect higher [prices for sugar-beet to result](https://www.financedigest.com/immediate-lift-of-oxford-property-prices-to-result-from-new-direct-high-speed-rail-connection-with-london.html "“Immediate lift” of Oxford property prices to result from new direct high speed rail connection with London") in much higher plantings next year because farmers are limited by crop rotation constraints.

The sugar beet area for this winter’s [crop is down by about 4% on the year](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year"), according to Suedzucker.

(Reporting by Maytaal Angel. Editing by Jane Merriman and Mark Potter)


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