You assumed your position at Südzucker AG at the beginning of the COVID-19 pandemic. What were the main challenges then for the company and the sugar industry in general?
After I took up my role as CEO on March 1st, 2020, the first obstacle I faced on account of COVID-19 restrictions was losing the ability to both meet members of the organization and familiarize myself with the inner workings of the company in person.
As food producers, we are part of the critical infrastructure. So, the general challenge for us was figuring out how to keep our factories running while protecting our employees from COVID-19 in the best possible way, in order to maintain a level of supply that met the steady demand for sugar. We addressed this issue by installing alternative production processes and factory protocol that enabled us to safely continue making sugar at a rate that met the end consumer’s needs. If you look at market dynamics, we had a period at the beginning of the pandemic in which the demand for sugar increased as people stocked food before it levelled out again with slight fluctuations thereafter.
Südzucker is synonymous with sugar, what is your footprint when it comes to sugar beet production, and what other segments are you active in?
I would note that Südzucker AG produces a variety of food products in addition to sugar, including frozen and chilled products like pizza, functional food ingredients, ethanol, starch, fruit preparations and juice concentrates, or portion packs, among several others. In terms of the sugar - we produce exclusively in Europe, using sugar beet. I think it is important for the market to understand that sugar cane and sugar beet are two different crops that are refined to yield the same product. The sugar we produce in Europe is from sugar beets only. The sugar imported to Europe, because the market is not self-sufficient, is produced from cane.
How do you perceive current EU regulations around sugar? Do you consider that they help or impede your competitiveness vis-à-vis other markets in India or Brazil?
Our company is committed to meeting the targets laid out by legislative packages, like the Green Deal and the “Farm to Fork” policy, which are aimed at reducing the CO2 footprint, developing sustainable modes of production, and reducing the climate impact. We also maintain close relationships with our farmers and make sure to inform ourselves of where they are based, how they are producing our sugar, and what means of delivery they are using to transport our products to our factories. This applies not only to sugar beet cultivation, by the way, but to all agricultural raw materials we use in the Südzucker Group, such as wheat, chicory or fava beans. So, overall, I would say that the social and environmental benefits promoted by EU regulations have set a competitive production model for other countries in the world.
Beyond food and ingredients, sugar can be used to produce bioplastics and biochemicals – to what extent are you capitalizing on this ability to reach sustainability goals?
Sugar and its possible applications are just one of many aspects of our sustainability targets. As a Group, we have set ourselves the goal of both a 50% reduction of our Scope 1 and 2 CO2 footprint and a 30% reduction of our Scope 3 CO2 footprint by 2030. So we want to become more sustainable across the entire value chain.
As far as the future of nutrition and the shift away from livestock products is concerned, we are on the right track with our already established focus on plant-based raw materials. By that I do not just mean our current products, such as functional food ingredients or fruit preparations; but also our activities in the area of meat and fish alternatives from raw materials such as fava beans, which we are currently establishing.
To return to the initial question: today, fossil-based raw materials are still predominantly used in the production of plastics and chemicals. If production is to become more sustainable, it will be essential in the medium term to switch to biobased raw materials.
This is precisely where we come in. In the future, we want to supply the biobased raw materials and intermediates - made from sugar beet or renewable ethanol, for example - that are needed for the climate-friendly production of plastics or chemicals. For this purpose, we are currently investing in a plant for the production of sustainable ethyl acetate, for example. There is definitely still a lot of potential here.
What are your objectives for Südzucker in the next few years?
Our business strategy is to further develop our existing business areas and in line with our strategy claim “Get the Power of Plants” to further develop plant based solutions for the growing global demands for functional ingredients, animal feed, fuel, and other essential products. We aim to stay close to farmers and keep reaching higher and higher when it comes to sustainable practices, now more than ever.
