Südzucker expects significantly lower sugar production from its 2026 beet campaign after drought, crop disease and reduced planting weakened harvest prospects in key European growing regions.

The German food ingredients group set out the warning in its half-year report on 8 October. Persistent heat and very low rainfall since June hit southern Germany and France particularly hard. August rain brought only partial relief.

Fewer beet hectares and lower expected yields will leave processing plants operating below capacity, adding costs to the campaign. Südzucker did not provide a production tonnage forecast in the announcement.

The warning matters beyond the sugar aisle. Sugar is an input for confectionery, bakery and drinks manufacturers, including businesses supplying supermarket own-brand ranges. Lower output can complicate procurement planning, although this update does not establish that customers face shortages or higher contract prices.

As one of Germany’s major food manufacturing groups, Südzucker supplies ingredients across several categories. Its German operating business runs seven sugar plants. The group’s sugar segment processed 24.8 million tonnes of beet and produced 3.8 million tonnes of sugar in 2025/26.

Production capacity and available crop are separate issues. A factory network cannot make up for fewer usable beet deliveries simply by running harder. For manufacturers planning the next buying cycle, the practical questions are contracted volumes, delivery windows and alternative approved sources.

The half-year figures also show why weaker crops should not be confused with an immediate improvement in sugar profitability. Sugar-segment revenue fell to €1.269 billion from €1.389 billion as prices and volumes declined. Its operating EBITDA remained negative at €24 million, despite lower manufacturing costs narrowing the loss.

Across the group, operating EBITDA rose to €303 million from €189 million. Better performance elsewhere therefore masks continuing pressure in sugar rather than removing it.

Südzucker had already revised its full-year guidance on 28 September. That earlier announcement put revenue expectations at €8.3 billion to €8.7 billion and operating EBITDA at €540 million to €680 million; those ranges are not a new upgrade today.

The next test is how the campaign develops as beet reaches the factories. Actual yields, sugar content and processing utilisation will determine how far the crop damage translates into lower output and higher unit costs.

Editor’s note: Based on Südzucker’s German-language half-year announcement dated 8 October 2026, its company profile and its 28 September guidance update. GTN added analysis of ingredient sourcing and factory utilisation.