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Beet price and distribution on shares announced

5 February 2009

The Board of Royal Cosun has set the price for quota beet from the 2008 campaign at € 39.44 per tonne. The beet price was announced during the meeting of the cooperative's members' council in Nijkerk. A distribution will also be made on old shares of € 0.25 per tonne of quota beet. 
 
The beet price of € 39.44 per tonne excluding VAT is payable in respect of both quota beet and surplus beet with average extractability and average sugar content. The average price paid per tonne of quota beet from the 2007 campaign had been € 41.31 and that per tonne of surplus beet € 21.17.
 
The quota beet price for 2008 is about € 2 lower than that for the previous year on account of changes in the EU market organisation for sugar. The surplus beet price, by contrast, is more than € 18 higher than that from the 2007 campaign owing to the Board's one-off decision to pay the same price for surplus beet as for quota beet. Cosun's sugar activities turned in good results thanks in part to the successful integration of CSM Suiker and Suiker Unie. For growers, the average yield per hectare of  € 2,902 was markedly higher than in 2007 (€ 2,524).
 
A further distribution of € 0.25 per tonne (2007: € 6.00) will be paid in respect of beet delivered on old shares. Weak demand, sharp fluctuations in the cost of energy, raw materials and processing aids and pressure on margins led to a sharp fall in the results of non-sugar activities, on which the distribution on shares is based.
 

The table below shows the harvest and sugar production figures for 2008 in comparison with 2007 (between brackets):
 

 

Total beet production 5,200,000 (5,300,000) tonnes
Beet sugar content (%) 17.2 (17.4)
Extractability (index) 91.2 (91.1)
Total sugar production 861,000 (886,000) tonnes

 


Cosun will publish its results for the past financial year on 17 March.