Serving the CEE Market

Transcription

1 Serving the CEE Market KONRAD HALWAX MANAGING DIRECTOR Kingsman EU Sugar Seminar - Geneva 14 th - 15 th April 2016 AGRANA SUGAR 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 1

2 AGRANA SUGAR IN CEE Mr. Konrad Halwax Managing Director AGRANA Zucker GmbH Friedrich-Wilhelm-Raiffeisen-Platz Vienna, Austria konrad.halwax@agrana.com 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 2

3 ABOUT US AGRANA FACTS We refine agricultural raw materials, turning them into a range of different industrial products to supply local producers as well as large multinational companies active in the food processing industry, in particular We also serve the end-consumer market in the Sugar segment with country-specific brands such as Wiener Zucker in Austria Leading SUGAR SUPPLIER In Central, Eastern & South-Eastern Europe Major manufacturer of customer-specific STARCH PRODUCTS 8,700 employees 54 production sites 2.5 bn revenue World market leader in the production of FRUIT PREPARATIONS 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 3

4 54 PRODUCTION SITES WORLDWIDE INT. PRODUCTION MEETS INT. CUSTOMERS 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 4

5 54 PRODUCTION SITES WORLDWIDE INT. PRODUCTION MEETS INT. CUSTOMERS SUGAR 7 sugar beet plants 2 raw sugar refineries & Instantina plant STARCH 5 starch plants (incl. 2 bioethanol plants) FRUIT 25 fruit preparation plants and 14 fruit concentrate plants Czech Rep. Slovakia Austria Hungary* Romania Bosnia- Herzegovina Bulgaria Countries with plants Other markets Beet sugar plants Raw sugar refinery Distribution centre * Also with refining activities Countries with production sites Main markets Starch plants Bioethanol plants Countries with production sites Potential Growth Regions 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 5

6 SWEETENER BALANCE IN CEE COUNTRIES kto white sugar / HFCS 300 Quota Production Quota Consumption Czech Republic Slovakia Austria Croatia Hungary Slovenia Bulgaria Romania Source: LMC Report 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 6

7 HOW IS THE MARKET SERVED THE THREE LEG STRATEGY LOCAL BEET SUGAR RAW SUGAR REFINING WHITE SUGAR IMPORTS - Imports from Beet- Surplus-Areas - Imports via Free Trade Agreements - World Market Imports ha by around Farmers in the Region - Beside this AGRANA Starch is producing and distributing HFCS Products since decades 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 7

8 COMPLEXITY IN THE MARKETS IN CEE - High nationalistic approach on an individual country level - Problems with legal framework as well as fraud - VAT-Fraud plays a big role in the sugar-trading - Different interpretation of EU-Legislation - Logistical Constraints (Border Controls, Measurements by Financial Authorithies, Different interpretation of EU-Rules) - Beets: - Fluctuation in yields by weather extremes - Lower Yields for beets and competing products - Clients: - Diverse Structures - High share of Spot-Market 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 8

9 AGRANA ZUCKER DIVISION CAPEX in m AGRANA REACTION - Local processor for local clients - Longterm relationship with suppliers and clients - Cost reduction - Investments CAPEX AGRANA Zucker since 2010/11: Total of 191 Mio. EUR Current situation Future Fit Target situation / / / / /16 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 9

10 AGRANA SUSTAINABILTY SUSTAINABILTY HIGHLIGHTS Mont Blanc Up to 20% increase in sugar yield per hectare by 2017 Intercropping increases biodiversity Farm Sustainability Assessment carried out by sugar beet suppliers in 5 countries Chain of Custody certified sugar from raw sugar refining Delivery of 40 % of the sugar beet 100% Utilisation of raw materials in core- & byproducts Social-/ SMETAudits at all sites Repurposing of settling ponds at the Hohenau site as a staging area for water birds ISO certification of all Austrian production sites Savings of 95,000 tonnes CO 2 due to low temperature dryers (since ) 5% reduction in direct energy use & water used per tonne of product-output* by From 2015 the Kaposvár HU factory will operate largely autonomously in terms of energy supply Sustainability Reporting 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 10

11 AGRANA YOUR PARTNER IN CEE Flexible cooperation models on supplier and customer side Mutual cooperation approach = building sustainable relationship between client and supplier Balanced approach along Beet sugar White sugar trading Raw sugar refining World market / Other preferential markets / EU Market 6th Annual Kingsman EU Sugar Seminar, Geneva 14 th - 15 th April 2016 Konrad Halwax - MD AGRANA Sugar 11