Danisco concentrates its activities within sugar beet seed by phasing out its involvement in oil and protein crops. Effective 10 May 2004, Danisco Seed sells off its winter oilseed rape and nematode-resistant white mustard business to the international plant breeding and seed group Svalöf Weibull.

The decision is based on the challenges faced by Danisco Seed´s main business area, sugar beet seed. The EU Commission is set to implement changes to the sugar regime as from 2006. Danisco Seed therefore intends to concentrate its efforts on sugar beet seed and strengthen the development, production and sale in order to offset the presumed consequences of the changes. The net book value of the sale will be approx. DKK 65 million in the financial year 2004/05.

Danisco Seed has experienced a positive development of the winter oilseed rape segment in the last couple of years. In the long term, however, Danisco Seed would have been forced to make considerable investments in hybrid breeding, modern breeding technology and perhaps acquisitions. Investments of this kind fall outside of Danisco´s core business areas.

‘The best way to handle our interests is by selling off the activities to a dedicated plant breeding and seed group like Svalöf Weibull, who will make sure to carry on the results achieved in this area,’ says Bjarne Skov Jensen, President, Danisco Seed.

Danisco employs around 40 people in and outside Denmark within the combined business area of oil and protein crops. Danisco Seed´s general manager for winter oilseed rape and mustard, Dr. Werner Horn (46), Königslutter am Elm, Germany, will be moving to Svalöf Weibull. As the activities are being phased out over the summer of 2004, the employees in the oilseed rape segment will to the greatest extent possible be transferred to other jobs.

The sales price is not disclosed.

Danisco Seed
Danisco A/S is an international food company with activities within food ingredients, sweeteners and sugar.

Danisco Sugar is one of the largest and most efficient sugar producers in Europe. Danisco Seed (DS) is a business unit in Danisco Sugar with annual sales of around DKK 350 million (2003/04).

The business includes development, production and sale of sugar beet seed, fodder beet seed, winter oilseed rape, protein peas, vining peas, white mustard and sunflowers – with main emphasis on sugar beet seed. Sales in oil crops are approximately approx. DKK 40 million. Danisco Seed has 209 employees, of whom 149 are in Denmark and the others in Danisco Seed´s subsidiaries in several European countries.

SW Group
Svalöf Weibull (SW) is an international plant breeding and seed group.

The group’s core activity consists of developing new varieties and producing seed for customers in areas of cold temperate climate, with main emphasis on cereals, oilseeds and forages.

SW has its own operation in ten countries and varieties from SW are represented in about 40 countries. The Group has about 675 employees and net sales about EURO 125 million.

About Danisco
Danisco develops and produces food ingredients, sweeteners and sugar. The Group employs approx. 8,000 people in some 40 countries and reported net sales of DKK 16.6 billion in 2002/03. Danisco´s broad product portfolio includes emulsifiers, stabilisers, flavours and sweeteners such as xylitol and fructose. The majority of these ingredients are produced from natural raw materials and contribute, for instance, to improving the texture in bread, ice cream, yoghurt and other products. Danisco is also one of the largest and most efficient sugar producers in Europe.