SPPK: Closure of Sugar Refinery Will Worsen Slovakia's Agri-food Trade Deficit

Bratislava, 10 February (TASR) - The closure of the Povazsky cukor sugar factory in Trencianska Tepla (Trencin region) will increase Slovakia's trade deficit, with the country losing self-sufficiency in sugar, Slovak Agriculture and Food Chamber (SPPK) head Andrej Gajdos told a press conference on Tuesday. "Around 120 growers supplied sugar beet to this defunct sugar plant, farming an area of about 8,200 hectares. This means that Slovakia's foreign trade deficit will worsen. From January to October last year, it stood at some €2.4 billion and, unfortunately, saw a €38-million increase when compared with the previous period. Now we can say with certainty that it's again risen by several tens of millions of euros," said Gajdos, adding that sugar was one of the few commodities in which Slovakia had been self-sufficient. Also attending the press conference, Sugar Beet Growers Association chair Robert Kovacs said that his organisation will seek compensation from Povazsky cukor. "Yesterday, on 9 February, I signed a letter outlining the ideas for compensating us," he added. In addition, sugar beet growers will be left with single-purpose machinery that can be used only for sugar beet. Kovacs hinted that the sugar plant owner could help them to sell it abroad, for instance in Poland, Germany, Sweden or Denmark. Part of the area of cultivation could be transferred closer to the last remaining sugar refinery in Slovakia, Slovenske cukrovary in Sered (Nitra region). "I think that the impact on Slovakia's foreign trade will be up to €50 million. Maybe not this year, when sugar prices are somewhat lower, but in one or two years, it will definitely be €50 million," added Kovacs. "Slovenske cukrovary will try to save part of the growing area that Povazsky cukor is leaving," said the company's managing director Adrian Sedivy, adding that the firm is ready to take measures to increase the processing capacity in Sered. "At present, we're holding talks with 36 agricultural companies accounting for an area of some 2,300 to 2,500 hectares of sugar beet," he added. Last Thursday (5 February), majority shareholder Nordzucker Group announced that Povazsky cukor would cease sugar production and sugar beet processing. The company will continue to operate, expanding its activities as a commercial and logistics centre supplying the domestic and other markets in south-eastern Europe. jrg/df