Raisio: EU Decision Impaired the Potential For Profitable Vegetable Oil Crushing in Finland

3 Sep 2013 --- The EU decision will ban the use of the most common plant protection product used in oil seed cultivation starting on 1 December 2013. As a result of the decision, the estimated oilseed cultivated area continues to decline significantly in Finland, which has led to co-operation negotiations in Raisio’s oil milling industry.

Raisio's oil milling industry adjustment carried out last winter and investments in production efficiency and flexibility will not be sufficient to secure profitable business in the new situation. The EU’s decision to ban the use of neonicotinoids will further weaken the availability of Finnish seed and the crushing of imported seed is not economically feasible.

On 2 September 2013, Raisio started co-operation negotiations on financial and production-related grounds for the re-evaluation of the factory capacities and possible closure of operations. The negotiations concern 15 employees.

During the current crop season, oilseed plants have been grown on some 50,000 hectares in Finland while three years ago, the area under oilseed cultivation was nearly 160,000 hectares. The 2013 oilseed harvest is estimated to reach 80,000 tonnes, which does not allow profitable oil milling industry in Finland.

Raisio plc is an international specialist in plant-based nutrition. Raisio’s operations are divided into two divisions: Brands and Raisioagro. The Group’s key market areas are Finland, Great Britain, the Czech Republic, Russia, Ukraine, Poland, Estonia and Sweden. Raisio plc’s shares are listed on NASDAQ OMX Helsinki Ltd. In 2012, the Group's net sales totalled EUR 584 million and EBIT was EUR 35 million. The Group employs some 1,900 people. Raisio’s best-known brands are Benecol, Honey Monster, Elovena, Fox’s, Dormen, Juicee Gummee, Poppets, Nordic and Benemilk.