Südzucker International Finance B. V. Südzucker AG ... - Xetra

under cultivation in Poland for the 6 (3) factories ofSüdzucker International was some 20 % higher thanfor the previous year, at 44.3 tonnes per hectare(36.8 tonnes per hectare). As in the previous year, thesugar yield was relatively low, at 15.7 % (15.9 %), dueto the wet autumn weather. Following the acquisitionof the Przeworsk sugar factory and the change incompanies included in the consolidation, the areaunder cultivation increased to 27,100 hectares(8,100 hectares). 164,000 tonnes (41,500 tonnes) ofsugar were produced from 1.2 million tonnes(0.3 million tonnes) of beet and the averagecampaign lasted 61 days (46 days).In Moldova the beet harvest could be increased to28.4 tonnes per hectare (21.7 tonnes per hectare),due to sufficient rainfall in summer. Lack of technicalequipment and pesticides led to an unsatisfactorybeet quality. 0.5 million tonnes (0.6 million tonnes) ofbeet with a sugar content of 13.9 % (15.0 %) wereharvested from 17,900 hectares (29,000 hectares).51,000 tonnes (64,900 tonnes) of sugar wereprocessed in a campaign lasting 58 days (58 days).Group beet processingin million tonnes2000/012001/022002/0322.325.029.7Sugar sales volumesThe EU companies in the Südzucker Group reachedlast year's levels of sugar sales in the EU, at 2.6 milliontonnes. At 1.2 million tonnes (1.5 million tonnes) ofsugar, exports were down due to lower quantitiesavailable.At 1,605,700 tonnes (1,836,600 tonnes) of sugar, totalsales volumes of Südzucker AG and Südzucker GmbHin 2002/03 were lower than for the previous year,due to the considerable decline in volumes availablefor export as a result of the harvest.Sugar sales volumes for Südzucker AG and SüdzuckerGmbH in the EU increased by 2.4 % to 1,245,000tonnes (1,216,100 tonnes). Deliveries to the sugarprocessing industry continued to grow. However, inparallel with market trends, sales volumes to foodretailers were slightly down. Whereas sales volumesto discounters showed a slight plus, sales volumesto other trade customers decreased slightly. However,it was possible to almost reach previous year's levelsoverall. Exports to other countries declined to360,700 tonnes (620,500 tonnes) due to the lowervolumes available for export.General consumer reticence (trade associations speakof one of the worst years ever for the sector) furtherfanned the flames of price competition already ragingin the food retailing industry. The deep discountersclearly profited most, and took additional marketshare from traditional full-range retail shops. Withits range of branded articles, Südzucker is directlyaffected by this trend, but is also indirectly affectedvia sales volumes to its industrial customers. Volumedeclines at customers in the branded goods areaand higher sales volumes to customers producingown-name articles provide evidence of a changingmarket.This development was particularly noticeable in thedrinks industry, our largest sugar customer. In thepast, increased demand for drinks in cans and PETbottles had led to a high proportion of sales usingnon-returnable packaging. Due to a compulsorycharge for these items introduced at the beginningof 2003, this share was sharply down and returnablecontainers gained ground. Production of returnablecontainers was expanded as a result of this changein the law, whereby some producers of non-returnablepackaging had to introduce short-time work.Südzucker demonstrated its closeness to the marketby being prepared for these events timely, and thuscould expand its market share in this turbulent yearfor the industry.F-63