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

In Austria, the beet yield was 68.2 tonnes per hectare (62.0 tonnes per hectare) for AGRANA,considerably higher than for the previous year, whereas sugar content was somewhat lower, at16.5% (16.8%). 3.0 million tonnes (2.8 million tonnes) of beet were yielded from 44,500 hectares(44,700 hectares) of land, from which 456,000 tonnes (423,400 tonnes) of sugar were processed. Beetprocessing lasted 83 days (77 days). The seven factories belonging to AGRANA International locatedin the central and eastern European countries processed 309,000 tonnes (279,800 tonnes) of sugarfrom 2.3 million tonnes (2.1 million tonnes) of beet, grown on 54,000 hectares (57,500 hectares) ofland. Including raw sugar refining of 144,000 tonnes (132,000 tonnes), sugar production reached453,000 tonnes (412,000 tonnes).Due to good weather conditions and progress in planting technology, the beet harvest in the areaunder cultivation in Poland for the 6 (3) factories of Südzucker International was some 20% higherthan for the previous year, at 44.3 tonnes per hectare (36.8 tonnes per hectare). As in the previousyear, the sugar yield was relatively low, at 15.7% (15.9%), due to the wet autumn weather. Followingthe acquisition of the Przeworsk sugar factory and the change in companies included in theconsolidation, the area under cultivation increased to 27,100 hectares (8,100 hectares). 164,000tonnes (41,500 tonnes) of sugar were produced from 1.2 million tonnes (0.3 million tonnes) of beet.In Moldova the beet harvest could be increased to 28.4 tonnes per hectare (21.7 tonnes per hectare),due to sufficient rainfall in summer. Lack of technical equipment and pesticides led to anunsatisfactory beet quality. 0.5 million tonnes (0.6 million tonnes) of beet with a sugar content of13.9% (15.0%) were harvested from 17,900 hectares (29,000 hectares). 51,000 tonnes (64,900 tonnes)of sugar were processed in a campaign lasting 58 days (58 days).The harvest expectations for 2003 are less favorable, mainly due to the impact of the long droughtperiod during the summer, in particular in Germany.Sugar sales volumesThe EU companies in the Südzucker Group reached last year’s levels of sugar sales in the EU, at2.6 million tonnes. At 1.2 million tonnes (1.5 million tonnes) of sugar, exports were down due tolower quantities available.At 1,605,700 tonnes (1,836,600 tonnes) of sugar, total sales volumes of Südzucker AG and SüdzuckerGmbH (merged into Südzucker AG effective March 1, 2003) in the fiscal year 2002/03 were lower thanfor the previous year, due to the considerable decline in volumes available for export as a result of theharvest. Sugar sales volumes for Südzucker AG in the EU increased by 2.4% to 1,245,000 tonnes(1,216,100 tonnes). Exports to other countries declined to 360,700 tonnes (620,500 tonnes) due to thelower volumes available for export. General consumer reticence (trade associations speak of one ofthe worst years ever for the sector) further increased price competition in the food retailing industry.With its range of branded articles, Südzucker is directly affected by this trend, but is also indirectlyaffected via sales volumes to its industrial customers. Volume declines at customers in the brandedgoods area and higher sales volumes to customers producing own-name articles provide evidence ofa changing market. This development was particularly noticeable in the drinks industry, Südzucker’slargest sugar customer.Total sales volumes at Raffinerie Tirlemontoise rose by 4% due to higher sugar production in the2002/03 campaign. Sales volumes in the EU declined slightly, whereby gains in the end-consumermarket could not fully compensate for declines in the industrial area. Ti´Light, the low-calorieproduct, sales of which are still growing rapidly, was supplemented by Ti´Flora and Ti´Calcium, bothhealth-related products. Candico, a subsidiary, could further extend its market position in theretailing and industrial sectors.Sugar sales volumes at Saint Louis Sucre were 1,121,600 tonnes (1,144,000 tonnes) in the fiscal year2002/03 (beet and cane sugar); its position in the EU could again be defended. Whereas the Frenchand German markets are supplied from northern France, Saint Louis Sucre has a refinery inMarseilles in a good geographic position to supply Italy and Spain. The company’s market position30