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Article: New sugar regime forces Austrian firm to rationalise.(Agrana Beteiligungs AG)
- Article from:
- Agra Europe
- Article date:
- January 27, 2006
CopyrightCOPYRIGHT 2006 Agra Europe Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The board of directors of Austrian sugar company AGRANA announced this week that it two of its eleven sugar processing factories are to close. Nevertheless, the company intends to maintain production at full EU quota level, although additional opportunities to produce for export will be lost because of the recent WTO agreement.
"Far reaching rationalisation and concentration measures are unavoidable" as a consequence of the reform of the EU sugar market regime and WTO developments, the company said. The fall in sugar prices and substantial payments to the restructuring fund will significantly increase the pressure on the industry.
The factory ...