KTG Agrar SE continues to benefit from trend towards organic and regional products

Posted: February 24, 2015 at 8:47 am


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The mega trend towards organic food continuesunabated. "More and more people choose organic products and also attachgrowing importance to their origins. Because organic does not necessarilymean regional," said Siegfried Hofreiter, CEO of KTG Agrar SE SE (ISIN:DE000A0DN1J4) after the BioFach 2015 fair. "BioFach has shown that our'from field to plate' strategy is hitting a nerve. Our unique sellingproposition of being able to offer products from the field to thesupermarket shelf from a single source will now be highlighted morestrongly also in the organic segment." At the world's leading organic foodfair, Bio-Zentrale Naturprodukte, a KTG subsidiary, presented its currentproduct range including the new "Hofliebe" product line. The latter offersa diverse range of products from soy oil to grains and flakes to muesligrown organically by KTG and bearing a clear seal of origin. "This uniquecombination of organic cultivation and regionality is what we callorganic+". Thanks to the high demand for GM-free soy, KTG Agrar also signedframework agreements worth EUR 12 million at the BioFach fair.On the occasion of the trade fair, Bund kologische Lebensmittelwirtschaft(BLW - association of organic food producers) again reported strong marketgrowth for 2014, when sales of organic food and drinks totalled EUR 7.91billion, 4.8% more than in 2013. According to BLW, the sales potential inEurope's largest organic market (approx. 30% market share) is far frombeing exploited in full. The limited regional supply is putting a damper ongrowth. At 2.7%, Germany's organically cultivated land again grew lessstrongly than the market as a whole. Being one of Germany's organicpioneers, KTG relies heavily on organic cultivation and can produce largequantities of organic food from the field of the plate.The scarce supply of GM-free organic soy was one of the most discussedtopics at this year's BioFach fair. Thanks to their high protein content,soybeans are popular not only as type of fodder but also as a foodstuff forhuman consumption - e.g. as a substitute for cow's milk and meat. Asconsumers reject genetically modified (GM) soy, the large producingcountries outside Europe do not qualify as suppliers. This benefits KTG,which has built up a unique market position as a producer of GM-free soyover the past years and will harvest soybeans on more than 8,000 hectaresin east Germany, Lithuania and Romania in 2015. A major portion of thesoybean harvest is processed into 100% GM-free soy oil by KTG Agrar's ownoil mill in Anklam. Going forward, the company intends to extend its valuechain in the soy segment.The above shows that the framework conditions for KTG Agrar, an organicfood pioneer and leading producer in the heart of Europe, remain excellent.For over 20 years, KTG Agrar has specialised in organic and GM-freeconventional farming. Increasingly often, the company processes its producesuch as grain, maize, soybeans, potatoes and vegetables internally. Toachieve this, KTG Agrar has invested in the extension of the value chainsince 2011 under the "from field to plate" strategy. Today, the companyprocesses 50% of its organic harvest internally. One third of the remaining50% has been sold at good prices.The positive start to the season was also highlighted by the company'ssuccessful participation in FRUIT LOGISTICA and the promising presentationof the "Die Landwirte" brand at this industry event. KTG Agrar is confidentthat it will be able to continue its growth in the food sector, withexports expected to make a bigger contribution going forward. "Havingsupplied the first products to China in 2014, we see great potential in thecountry for the coming years," said Reinhard Meiner, CEO of KTG Foods SE."Healthy nutrition is playing an increasingly important role for the fastgrowing middle class. BioFach has also shown that interest is high-qualityGerman food is growing strongly in China." 2014 saw KTG Foods almost doubleits sales revenues to EUR 100 million. This dynamic growth is to becontinued in 2015.About KTG Agrar SEWith cultivable land of approx. 45,000 hectares, KTG Agrar SE (ISIN:DE000A0DN1J4) is one of the leading producers of agricultural commoditiesin Europe. As an integrated supplier, the company produces agriculturalcommodities and renewable energy and food. The Hamburg-based company's corearea of expertise is the organic and traditional cultivation of marketproducts such as cereals, potatoes, soy and rapeseed. For organic marketproducts KTG Agrar is the European market leader. The company mainlyproduces in Germany but has also operated production in the EU member stateof Lithuania since 2005. As a result of the takeover of FrenzelTiefkhlkost and Biozentrale Naturprodukte, KTG has expanded the valuechain by the production of food since 2011. In the year 2013, KTG achieveda total output of EUR 205.3 million and EBIT of EUR 23.9 million. SinceNovember 2007 the company is listed on the Frankfurt Stock Exchange and had775 employees at year end 2013. Further information can be found atwww.ktg-agrar.deContactInvestor Relations / PressFabian LorenzIR.on AG Phone: +49 221 914097 - 6E-mail: fabian.lorenz@ir-on.com---------------------------------23.02.2015 Dissemination of a Corporate News, transmitted by DGAP - aservice of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at http://www.dgap-medientreff.de and http://www.dgap.de---------------------------------Language: English Company: KTG Agrar SE Ferdinandstr. 12 20095 Hamburg Germany Phone: +49 (0)40-303 76-47 Fax: +49 (0)40-303 76-799 E-mail: presse@ktg-agrar.de Internet: http://www.ktg-agrar.de ISIN: DE000A0DN1J4, DE000A1H3VN9, DE000A1ELQU9, DE000A11QGQ1, WKN: A0DN1J , A1H3VN, A1ELQU, A11QGQ Indices: HASPAX Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich (m:access), Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News-Service --------------------------------- 326005 23.02.2015

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KTG Agrar SE continues to benefit from trend towards organic and regional products

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February 24th, 2015 at 8:47 am

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