Partly Cloudy

Partly Cloudy

max temp: 17°C

min temp: 12°C

Search

Bury St Edmunds: British Sugar owner ABF reports ‘very good progress’ for new season’s beet crop

10:15 10 July 2014

The British Sugar factory in Bury St Edmunds.

The British Sugar factory in Bury St Edmunds.

Associated British Foods (ABF) said today that revenues across its sugar business were 20% lower during the third quarter of its financial year.

But the group, which owns the British Sugar beet processing business in the UK which includes a sugar factory in Bury St Edmunds and the associated Silver Spoon brand, said the beet crop for the 2014-15 season was making “very good progress”.

The update came as part of a interim management statement in which ABF said group-wide revenues for the 16 weeks to June 21 were up 3% on a constant currency basis, with its Primark budget fashion chain leading the way with growth of 22%.

The decline in sugar revenues was driven by substantially lower sugar prices, weaker European Union sales volumes and lower sugar production in north China.

ABF said the trend reflected the end of EU sugar quotas in 2017, although the speed of adjustment had been faster than expected.

“The UK sugar campaign in 2013-14 benefited from the mild winter as the company produced 1.32million tonnes of sugar compared with 1.15m tonnes the previous year, with beet yield per hectare 12% ahead. Record operating performances were achieved at all plants,” it added.

“The new crop for the 2014-15 season has made very good progress. The beet price payable to growers for this crop was agreed in summer 2013, at a substantial increase over the price for this year, and at a cost of some £30m.

“Discussions are under way with the National Farmers Union to agree future beet prices beyond the 2014-15 season that will ensure a sustainable UK beet sugar industry reflective of the new commercial environment for EU sugar.”

In grocery, revenues were 5% lower compared with last year at constant exchange rates, with the majority of the decline caused by lost contracts and lower UK sugar pricing at Silver Spoon.

This was offset by market share growth for Kingsmill bread in the face of challenging trading conditions, while Twinings Ovaltine continued its recent record of profit and sales momentum.

ABF said the latest growth at Primark brought its growth for the first 40 weeks of the financial year to 17% and reflected the impact of warmer weather compared with a year ago in March and April and continued strong trading over the following two months.

Selling space increased by 1m sq ft on a year earlier to take the Primark estate to 275 stores covering 10m sq ft in locations across Europe.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Rush hour motorists travelling towards Ipswich on the A12 faced delays this morning due an overturned car.

Kesgrave High School could become a multi-academy trust (MAT) with primary schools in east Ipswich and Suffolk if plans by the board of governors are approved.

Using top-grade farmland for more than 560 homes would provide an “illogical extension” to a Suffolk resort and ruin its only area of countryside, a planning inquiry was told yesterday.

A restaurateur has praised the ‘honourable’ parents of an Ipswich thief involved in a ‘dine and dash’ after they paid the £147 bill their daughter and her fellow diner left behind.

England manager Sam Allardyce has left the position after just one match in charge.

Universities across Suffolk and Essex have been recognised in the latest Times and Sunday Times Good University Guide – with the University of Suffolk celebrating its entry for the first time.

A man in his early 60s died after being involved in a go-kart collision at a popular racetrack while celebrating his brother’s birthday.

Councillors in Kesgrave are set to tackle problem areas for broadband speeds in the town, and need residents’ input on slow zones.

The Robert Ransome pub in Ipswich is being put up for sale, it can be revealed.

A dining pair who ran off without paying for a meal at the Unruly Pig in Bromeswell have been sentenced at Ipswich Magistrates’ Court.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

MyDate24 MyPhotos24