Danisco Sugar to Continue Finnish Sugar Production

Meanwhile Danisco reported that sugar production exceeded 1 million tonnes, as record-high yields from sugar beet fields in several countries have resulted in a large sugar output as expected. Danisco's sugar production totalled 1,069,000 tonnes of sugar.

11/02/08 Sucros Oy and its owners Danisco Sugar A/S and Lännen Tehtaat Oyj have decided to continue sugar production in Säkylä sugar factory. Danisco said that this means that they can also in the future offer our customers and Finnish consumers sugar farmed and produced in Finland. Due to EU sugar reform, domestic beet sugar production has decreased 45 % from the level 2005 and is now 80.999 tons a year. This equates, however, nearly half of the consumption so domestic sugar has still an important role on a Finnish ‘dining table’.

Danisco said in a statement that they are very satisfied that sugar beet growers and MTK/SLC have shown strong commitment to continuing beet growing substantially enough for the coming seven-year IPA period. The extended reception time of growing contracts resulted in fulfilling this year’s sugar quota added with a small extra amount. All in all 1.073 growers are willing to grow beets during the coming contract period. The total area for beet will be ca. 14.400 ha.

Sugar beet growing will concentrate nearer Säkylä factory. During the next growing season the average distance of the farms from the factory will be ca. 90 km, whereas last year it was around 110 km. About 10 % of the  beets will be grown further than 160 km from the factory. The average beet growing area of a single farm will increase from 10 hectares up to 13 hectares.

Finnish government has in many connections highlighted the importance of continuing sugar production. Sucros, the beet growers, MTK/SLC and the Finnish government have a joint responsibility to ensure a long-term sustainable beet growing and sugar production in Finland. The decision Sucros has now made is based on all parties working in favour of continuing beet growing and beet sugar production.

Säkylä sugar factory was built in 1952. During the campaign it slices on average 7.500 tons of beet daily and produces 1.100 tons of sugar out of it. The factory is giving work to ca. 70 employees the year round and in the autumn it employs additionally 40 seasonal campaign workers. The domestic beet sugar production is indirectly giving work to hundreds of people. For example during the beet campaign around 350-400 truck drivers are getting their income from sugar related transportation.

Sucros Oy and its 100 % owned daughter company Finnsugar Ltd. is producing and marketing various granulated and liquid sugars, syrups and special products. The products are delivered to industrial customers in tank trucks or packed into bags and containers of different sizes. To the consumers we are offering a broad product portfolio of granulated and cube sugars, special products and syrups under the brand name Dansukker.

Meanwhile Danisco reported that sugar production exceeded 1 million tones, as record-high yields from sugar beet fields in several countries have resulted in a large sugar output as expected.

Danisco's sugar production in Denmark, Sweden, Finland, Germany and Lithuania totalled 1,069,000 tonnes of sugar in the campaign just ended. This exceeds Danisco’s total EU quota of 973,000 tonnes of sugar by close to 100,000 tonnes and is, hence, a satisfactory result, which is in line with expectations.

Executive Vice President Thomas B. Olsen elaborates on the result: ’Favourable weather conditions gave us the best possible start to the growing season and have contributed to a record-high sugar yield in several of our production countries. However, growing conditions were not optimal during the summer and autumn, which is the reason for the local variations in yields.’
’The higher yield levels overall also reflect the extensive efficiency improvements made within beet growing in our region in the past few years. In consequence, the average yield level for the 20% growers generating the highest yields is now around 11-12 tonnes of sugar per hectare in most of our production countries. Beet growing is now concentrated with farmers who focus strongly on this crop to the effect that sugar beet has become a key, stable crop in Northern Europe. This puts the sugar industry in a strong position going forward.’

’We are very pleased that following the restructuring measures launched in response to the EU sugar reform, our production is well on track.’