AGRANA Annual Report 2009|10
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Sugar: Austria

Sugar: Austria

Sugar revenue in Austria eased by about 4% to € 348.1 million (prior year: € 364.2 million). This resulted from the combination of reduced quota sugar sales volume and declining prices. Even with volatility in sales quantities amid the economic crisis, AGRANA was able to hold sugar sales to the food industry constant over the full financial year. Sugar sales to food retailers saw a decrease. Through the positioning of AGRANA sugar under the “Wiener Zucker” brand as an Austrian high-quality product, the market shares were successfully defended at the prior-year level. From the middle of 2009, the rising world market price for sugar had a positive effect on exports of non-quota sugar. Thus out-of-quota sugar exports to non-EU countries were significantly expanded by targeting new markets (such as Israel, other Middle Eastern countries and Uzbekistan). With the addition of organic sugar to its product portfolio, AGRANA has entered a new market segment. The selling prices for co-products (molasses and dried beet pulp) decreased in parallel with grain prices.

The absence of the restructuring levy from the 2009|10 sugar marketing year onward and cost reductions in energy purchasing were positive factors, although lower processing throughput resulting from beet quality differences led to higher costs in production.

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Group Management Report : Sugar segment : Sugar: Austria
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