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Südzucker uses sugar beet as a paper substitute

December 11, 2024 - Niels van der Boom

The world's largest sugar beet processor Südzucker Group is going to use sugar beets as a raw material for paper and cardboard. It's not the first to do so, Royal Cosun started in 2021, but the company has big ambitions to extract more value from beets.

Südzucker presented the so-called 'BeetKraft' in early December. A paper raw material for the packaging industry made from beet (pulp). It replaces paper pulp traditionally made from trees. This year, beet paper is expected to be produced on an industrial scale at their processing site in Offstein, Rhineland-Palatinate.

40% replacement
For the paper product, it collaborates with technology company Zelfo Technology. The production process of Beetkraft is patented and capable of replacing up to forty percent of traditional wood fiber in paper, packaging cardboard, or corrugated cardboard. According to them, the product should also be more stable and better suited for use in the food industry.

Südzucker hopes to extract more value from beets and beet pulp while also having a good story when it comes to sustainability. The beets are locally grown, and the CO2 savings resulting from this, along with the use of less wood, should give the packaging a lower environmental impact.

The company had their product tested by the German research institute PTS, specialized in paper and other fibers. With this, Beetkraft is now ready for commercial production.

Cosun on the market since 2021
As early as 2021, Cosun, with paper producer Crown Van Gelder, launched a type of beet paper. This so-called 'Crown Native' contains twenty percent beet pulp and mainly replaces industrial packaging. For example, the well-known one-kilo sugar packages from Van Gilse have been made from beet pulp since the introduction year. According to them, the footprint of beet paper is sixteen percent lower than traditional wood fiber.

This application fits within the Unlock 25 strategy presented in 2022, focusing on a broader use of beets. This includes plant-based protein, dietary fiber, and biobased raw materials such as paper. Expanding this strategy is still a top priority for the cooperative this year, as reported in their February 2024 annual report. "We stick to our course and focus on further acceleration," said CEO Hans Meeuwis.

Negative result
The Unlock 25 strategy, along with improved market conditions, helped increase the company's operating result from €196 to €525 million in 2023. However, by discontinuing 'an innovation in biobased', a negative result of €39 million was recorded at the bottom line. This shows that the path of biobased innovation is still largely pioneering.

Niels van der Boom

Niels van der Boom is a senior market specialist in potatoes and other soft commodities at DCA Market Intelligence.
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