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History |
[spanish] |
Origins of the Spanish beet sugar industry
The Spanish beet sugar industry began around the end of the 19th century when beet began to overtake cane growing as the principal raw material in sugar production. This change in growing trends across Europe meant that extensive planting of beet sugar, together with the decline of Spanish colonial dominance in Cuba and the Philippines was decisive in paving the way for the industry on Spanish soil. The first beet sugar seeds to arrive in Spain were imported from Germany and Poland.
The birth of the first beet sugar factories in Spain
In 1882, the first beet sugar factories were built in Spain:
- Ingenio de San Juan: Located in the town of Vega de Granada, the
factory was founded by Juan López-Rubio y Pérez. With
a milling capacity of 50 tons of sugar beet per day, the factory was
of moderate size when compared with its European counterparts. The construction
availed of the absolute latest technology available at the time and
the entire project cost an estimated 250,000 pesetas.
- Santa Isabel: this factory is located in the town of Alcolea, in the
region of Córdoba, and was founded by the Count of Torres-Cabrera.
The factory had a sugar beet milling capacity of 20 tons per day.
-Here is a breakdown of the daily wages at the factory for some of the workers to give you an idea of what a worker at the Azucarera Santa Isabel would have been earning back in en 1882:
| Daily wages. Azucarera Santa Isabel (1882) | |
| Labourer |
1,75 ptas. |
| Mills and Turbines Foreman | 2,00 ptas. |
| Diffusion and Evaporation Foreman | 2,50 ptas. |
| Production Controller | 5,00 ptas. |
| Mechanical Fitter | 10,00 ptas. |
| Cooker's mate | 10,00 ptas. |
| Cooker | 17,50 ptas. |
Growth of the sugar industry in Spain
From 1889 to 1920 the industry witnessed a period of great growth. The number of factories operating rose to 65 following the expansion of sugar beet planting in many Spanish regions. Even when one factory closed, another would spring up to take its place and the proliferation of sugar beet factories made it necessary to introduce mechanisms to regulate the sector:
- In 1890 the first ever agreement of its kind was signed between beet
growers and producers. This deal introduced measures to promote and
regulate the sector in order to set limitations in terms of competitive
practises.
- In 1903, the Sociedad General Azucarera de España (Spanish General Sugar Company) was founded in an effort to put an end to the chaotic situation of the sugar industry as a consequence of the excessive number of factories scattered around the peninsula.
- In 1907 the sector is subject to regulation for the first time.
The initial dominance of production in western Andalucía and especially in the fertile valleys around Granada was short lived and would soon give way to areas such as the Ebro Basin, and to a more modest degree, in the area around the Duero Basin. Production began to take hold in the mountainous area in the North-North East, but had a very short life, while activity in eastern Andalucía temporarily ceased.
From 1921 to 1940, a period when overproduction and a sharp fall in prices made it necessary to introduce legal measures to regulate the sector and in 1925, a law was passed ensuring the provision of a Joint Arbitration Committee which fixed a minimum annual production of 350,000 tons. The committee was also bestowed the powers governing setting up, extending or transferring factories to other areas of the sugar producing sector.
From 1941 to 1960 there was no significant change in the number of sugar companies operating in Spain and the area around the river Duero became the most important sugar producing region in the country:
Favorable evolution of the Spanish sugar sector:
From 1961 to 1980 the Spanish sugar industry consolidated its activities
- During this period, factories are extended and improvements made and
in 1966, the combined sugar industry producers formed the Research Association
for Improved Sugar Beet Production (Asociación de Investigación
para la Mejora del Cultivo de la Remolacha, AIMCRA as per the Spanish
acronym).
- The association introduced a groundbreaking system for determining
the price to be paid for sugar beet depending on the saccharose content
in order to stimulate agricultural production. This system is still
in operation today.
Production in the Ebro and fertile valley regions around Granada slowly collapsed and the Duero region, then the most important beet producing region in Spain, began to boom along with eastern Andalucía.
The Spanish Sugar Industry - Adapting to the European Uniona
The 1980's was a significant period for the industry given that it had
to adapt to Spain's membership in the European Union. This fact required
a complete overhaul of the sector in order to meet European standards
in terms of productivity and quality. As a result of this drive, several
factories closed while other plants were extended and provided with state
of the art technology. Consequently, the result was an increase in productivity
and quality.
Since 1990, the Spanish sugar industry has continued to invest increasingly
greater effort in restructuring procedures and standardization to bring
the sector in line with European standards:
- The sector has developed a joint policy in conjunction with agricultural co-operatives and organizations to maintain profitability for growers while increasing production, output and quality. In 1992, the sector implemented a strategic plan to modernize sugar beet growing operations and introduce technological improvements: Plan 92, later called the Updated Plan.
- In consequence, investment in research projects has been significantly bolstered. These projects are undertaken at centres such as INIA, the Madrid Politechnic University and the Valladolid University.
History of Azucarera Ebro
1903: the Company is born
Azucarera Ebro Agrícolas is the result of a merger between three companies:
 |
 |
 |
|
| S.G.A.E. | C.I.A. | EBRO | |
| Company registration date | July 1st 1903 | August 16th 1911 | December 9th 1911 |
| Stockholder's Equityl | 143.000.000 Pts | 9.000.000 Pts | 4.000.000 Pts |
| Shares | 286.000 | 36.000 | 8.000 |
| Share par value | 500 Pesetas | 250 Pesetas | 500 Pesetas |
| First registered company address | Montalbán, 6 Madrid | Pº Industria, 12 Barcelona | Zaragoza |
Sociedad General Azucarera de España came into being in July, 1903 as a consequence of the necessity to regulate the excessive number of sugar factories in existence in Spain. In September, 1906 the registered business address was changed to Calle de Alarcón, nº 5 (the street has since been renamed and today is called Ruíz de Alarcón).
Compañía de Industrias Agrícolas, S.A., founded
in 1911, from the merger of Azucarera del Jalón, set up in 1904
and the root company Compañía de Industrias Agrícolas,
set up in 1910. In 1918 the business address moved to Calle Fusina nº
9, in Barcelona. Between 1936 and 1939, the headquarters were transferred
to San Sebastián. In 1947 the Head Offices were established in
Calle Balmes nº 103 in Barcelona.
The Ebro company was founded in 1911 under the name of Compañía
Anónima Azucarera del Ebro. In 1921, the offices were transferred
to Pamplona. In March, 1929 the comapny changed its name to Ebro Compañía
de Azúcares y Alcoholes, S.A., after buying out the Compañía
de Alcoholes (founded in 1910 in Bilbao) in December 1928. That same year,
the company moved its business address and established its headquarters
in Madrid. In 1935 the company bought property in Calle Villanueva, nº
4. In 1951, the company transferred its business to San Sebastián.
Ebro takes over the company Sociedad Industrial Castellana, in 1968.
Trend in number of sugar producing companies and sugar production
| Year | S.G.A.E. | C.I.A. | EBRO | |||
| Sugar producers |
t Sugar | Sugar producers |
t Sugar | Sugar producers |
t Sugar | |
| 1919/20 | 14 | 32.272 | 4 | 16.259 | 2 | 6.505 |
| 1939/40 | 13 | 18.453 | 6 | 18.586 | 6 | 22.611 |
| 1959/60 | 14 | 139.365 | 8 | 107.022 | 9 | 143.877 |
| 1979/80 | 9 | 195.150 | 6 | 183.068 | 11 | 215.050 |
| 1989/90 | 5 | 220.006 | 5 | 190.174 | 9 | 336.051 |
These three companies had other industrial interests, some of which are
still active today:
Distilleries: SGAE in the past owned three distilleries; CIA had five, one of which remains active today in La Rinconada and Ebro owned six distilleries.
Animal feed plants: CIA owned six factories in the past but is no longer involved in this area.
Bread-making Yeast factories: SGAE used to operate three factories, CIA had one and Ebro owned three. Currently, none of the companies have any factories in operation.
Organic Acid production: CIA was once involved in the production of glutamic acid and Ebro had a plant producing citric acid. Currently, neither of the plants remains operational.
The track record of the three companies in partnership agreements
Since 1920, the three companies that today comprise Azucarera Ebro Agrícolas
have been involved in many partnership agreements with other companies:
1920: SGA & CIA form the company COMPAÑÍA
AZUCARERA PENINSULAR.
1930: SGA & CIA form the company SOCIEDAD
AZUCARERA IBÉRICA, S.A
1931: SGA & CIA form the company AZUCARERA
DE LA BAÑEZA, S.A.
1953: SGA, CIA & EBRO form the company AZUCARERAS
CASTELLANAS , S.A
1967: SGA, CIA & EBRO form the company AZUCARERA
DEL GUADIANA, SA
1971: SGA & EBRO buy out "Hijos de Carlos Eugui, S.A."
(AZUCARERA DE CIUDAD REAL, SA en 1970)
1972: SGA, CIA & EBRO form the company AZUCARERA
DEL CARPIO, S.A.
1986: SGA & CIA form the company COMPAÑÍA
GENERAL DE LEVADURA.
1990: The first merger is undertaken. The company known as Ebro Agrícolas
Compañía de Alimentación S.A. is set up.
In 1990, Ebro Compañía de Azúcares y Alimentación, S.A., and Compañía de Industrias Agrícolas, S.A., which had previously taken over several other companies, merge to form the comapny Ebro Agrícolas Compañía de Alimentación, S.A.
The primary business activity of this new company is that of traditional business lines (sugar, alcohol, animal feedstuffs, molasses and pulp) although the organisation diversified its activities to include other agro-foodstuffs products, such as rice, spices and infusions, tinned fish and duck products, mushrooms, truffles, asparagus, chestnuts, etc, which paved the way for its European expansion campaign.
| Ebro Agrícolas Compañía de Alimentación, S.A. | |
| Date founded |
December 29th 1990
|
| Shareholder's Equity |
4.485.000.000 ptas.
|
| Number of shares |
44.850.000
|
| Share par value |
100 pesetas
|
| Registered business address |
Balmes, 103 - Barcelona
|
Modernization Strategy
In line with the restructuring strategy taking place at the time within the Spanish sugar producing industry and which would eventually bring the industry in line with average sugar production quotas per factory of their European competitors, Ebro Agrícolas, Compañía de Alimentación, S.A. undertook a major restructuring project. The aim of the project was to reduce the number of factories in operation and invest in increasing the capacity and technological modernization of other plants as well as development of a system for enhancing quality and standardization in processing procedures. In the last financial year, the company, Ebro Agrícolas, Compañía de Alimentación, S.A. owned 10 sugar processing plants.
With similar objectives, SGAE set in motion a plan to close certain factories, invest in modernising existing facilities and enhancing quality standards.
1998: Second merger takes place forming the company Azucarera Ebro
Agrícolas, S.A.
In 1998, the sector witnessed one of its most significant milestones,
and certainly one of the most noteworthy events to date for the Spanish
agro feedstuffs industry: Ebro Agrícolas, Cía de Alimentación
and Sociedad General Azucarera de España joined forces to form
Azucarera Ebro Agrícolas, S.A., and constituting a powerful agri-foodstuffs
group, equipped to compete within the European sugar and rice processing
markets and a steadfast guarantee for the interests of Spanish agricultural
workers and industry workforce, and in short, for the Spanish economy
also.
| Azucarera Ebro Agrícolas | |
| Date founded |
May 11th 1998
|
| Shareholder's Equity |
6.631.407.200 ptas.
|
| Number of shares |
66.314.072
|
| Share par value |
100 pesetas
|
| Registered business address |
Balmes, 103 - Barcelona
|
Operations and installations in May, 1998
- 14 sugar production plants
- 4 distilleries
- 5 animal feedstuffs factories
- 2 laboratories
En su primera campaña, Azucarera Ebro Agrícolas obtuvo una producción de 898.537 toneladas de azúcar.
2001: Third merger process takes places, forming the company Ebro Puleva,
S.A.
On February 7, 2001 a merger agreement was signed between Azucarera Ebro
Agrícolas, S.A. and Puleva, S.A, giving rise to the new company,
Ebro Puleva, S.A. The agreement produces the leading Spanish food group
and the company is one of the largest 25 companies in Europe.
On March 28, 2001 a subsidiarisation deal covering all business lines in sugar, alcohol, animal feedstuffs and by-products under the company known as Azucarera Ebro, S.L. Sociedad Unipersonal, entirely owned by the parent company, Ebro Puleva, S.A.
| Azucarera Ebro, S.L. Sociedad Unipersonal | |
| Date founded |
March 28th 2001
|
| Shareholder's Equity |
60. 000.000 euros
|
| Number of shares |
1.000.000
|
| Share par value |
60 euros
|
| Registered business address |
Avda. de Manoteras, 46
28050-Madrid |
2009: The British Sugar Group acquires Azucarera Ebro
On 1st May 2009 British Sugar Group, the second largest sugar producer in the world, which belongs to ABF (Associated British Foods), successfully completed the purchase of Azucarera Ebro.
Book about Sugar industry in Spain (in spanish)
