News
08.09.2009
British Sugar’s owner expects higher sugar profits
The owner of British Sugar, Associated British Foods, says it expects profits from its sugar business to be "substantially ahead of last year" by the end of the current financial year.
A pre-close trading update today (7 September) said growth in the EU and Illovo (Africa's leading sugar producer) would more than offset losses in China.
"In the EU, our UK and Polish businesses delivered good results with solid operating performances, robust sales, the benefit of a strong euro and favourable energy costs," the statement said.
"The combination of our leading position in the UK with that of Azucarera Ebro in Iberia, together with access to the sugars of the Least Developed Countries provided by Illovo, gives us a strong presence in the EU market."
The news comes less than a week after British Sugar's Karl Carter handed growers an ultimatum that effectively forced them to grow sugar beet for £26/tonne, £1/t less than they were paid last year.
He said, if British Sugar was forced to pay a higher price - even just £1/t more - it could not afford to make the planned 800,000t of extra temporary tonnage available. "Growers will lose £8.7m and we'll make more money by not putting additional tonnage out."
In the trading statement, ABF also said its agricultural side of the business had performed "well above expectations". Frontier produced "exceptional results", having anticipated the correction in the value of the global grain markets and the increased demand for seeds, fertilisers and crop protection products, it said.
ABF's full year results to 12 September 2009 are scheduled to be announced on 3 November 2009.
