Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

These were processed in the Warburg
factory of Südzucker under contract.
The operating results rose to Euro 81
(63) million. This distinct rise over the
previous year’s figures is the result of an
altogether unproblematic campaign, the
high sugar content, and the lower quota
sugar declassification. Despite the larger
quantity, C-sugar proceeds by contrast
remained below the previous year’s level,
which is attributed to the marked drop in
world market prices.
Sales
World Sugar Market
Market analysts expect sugar production
to amount to some 146 (149) million
metric tons raw sugar value worldwide
for the sugar production year 2003/2004
(1 October to 30 September). The share
of the EU sugar industry in this decline is
about two million metric tons. Consumption
is estimated to be about 143 (136)
million metric tons.
Against the background of the
decreasing US dollar, the world market
prices continued their downward trend in
2003. At Euro 158 per metric ton of
white sugar, October 2003 saw the lowest
level since 1990. By mid-December
2003, quotations rose slightly to Euro
168 per metric ton. Although the US
dollar continued to be weak, prices started
to recover at the end of January 2004,
and they reached a level of Euro 190 per
metric ton by mid-March.
European Union
The 15 (17) million metric tons of sugar
produced in the EU in the 2003 campaign
remain some two million metric
tons of sugar below the previous year’s
production figure. This drop is attributed
to the sugar yield, which because of the
summer drought was clearly lower than
in the previous year and only reached an
average 8.8 (9.2) metric tons of sugar
per hectare. Another factor is the restriction
in beet cultivation in the EU, reducing
the cultivated area by 6.8 percent to
1.7 (1.8) million hectares. Only Denmark
and Ireland report production figures
above the previous year’s levels. Sugar
yields were between 11.8 metric tons of
sugar per hectare in France and 4.6 metric
tons of sugar per hectare in Finland.
To comply with WTO requirements,
the EU Commission has decided to subsequently
reduce the quota sugar production
for 2003/2004 by approximately
206,700 (827,000) metric tons (declassification).
For Nordzucker this meant that
about 19,000 (74,000) metric tons of
quota sugar had to be converted into
C sugar.
Nordzucker AG
As a result of the integration of Union-
Zucker, Nordzucker AG has considerably
increased the sales of crystal sugar in the
EU. In spite of increasingly competitive
trading conditions, sales in 2003
remained at the previous year’s level. In
view of the substantial declassification in
the 2002 campaign, far higher amounts
of C sugar had to be marketed on the
world market in the year under review.
Nordzucker 2003/2004 17