Danisco hits sugar targets

By Catherine Boal

- Last updated on GMT

Related tags: Denmark, Sugar, European union, Danisco

Danish sugar producer Danisco announced yesterday it had met its
2006/07 output forecast - processing 1.01m tonnes of sugar from the
group's factories throughout Europe.

Danisco processed nearly 7m tonnes of sugar beet to produce a total output slightly in excess of the group's EU quota.

The ingredients manufacturer attributed the bumper harvest to favourable weather in Northern Europe during the winter months but cautioned that production in Sweden and Lithuania was affected by last year's very warm and dry summer while heavy rainfall in Sweden also damaged crops.

The new EU sugar reform came into force in July last year, posing a challenge for growers and producers alike but, by internal restructuring of the company's operations and closure of plants in Denmark, Finland and Sweden, Danisco believe it has avoided the worst of the changeover.

Danisco's executive vice president Mogens Granborg said: "We have reason to be satisfied with this year's output and successful campaign.

"Parallel with the campaign we have implemented extensive restructuring measures in our sugar unit which is now adjusted to the conditions provided under the new EU sugar market; however, in spite of this, our efficiency has remained high."

The company said it would focus the business further by ceasing sugar production at three of its ten sites.

Factories in Denmark proved the most efficient during last year's sugar campaign - producing 475,000 tonnes - while the company's site in Lithuania brought in 92,000 tonnes.

Related topics: Commodities, Cocoa & Sugar

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