Danisco Sugar expects an overall production considerably above the quotas specified by the EU, the Danish ingredients company reports this week. However, the final allocation of this year's quotas will not be made until the European Commission has assessed the need for quota reductions based on the 2002/03 sugar export conditions stipulated by the WTO.
This year's quota reduction in the EU is expected in the range of 3-5 per cent on a par with the production in 2000/01.
The previously announced full-year earnings forecast (EBITA) of around DKK 1.1-1.2 billion (€0.15m) for Danisco Sugar remains unchanged following the result of this year's first field sample.
Generally, the sugar beets were sown about two weeks earlier than normal owing to favourable weather conditions. Due to the good weather conditions, the stand is larger than normal and, generally, the beet growth has been optimum since germination, the company reports.
Provided the favourable weather conditions continue during the rest of the growing period, Danisco Sugar foresees that there is the potential for a total sugar production in 2002 considerably above the current quotas for Denmark, Sweden, Germany, Finland and Lithuania of 1,158,500 tonnes in total.
As with last year, a total of two samples will be made this year. The results of this year's second sample will be announced at the beginning of September.