Footprint

economic footprint

In the sustainability realm, for AGRANA as an energy-intensive industrial company, the ecological aspect of its business operations has been a focus for many years. In the 2015|16 financial year the Group's contributions to the economy in terms of value-added and employment were studied more closely for the first time.

Based on the business data for 2017|18, when AGRANA's Fruit, Starch and Sugar segments generated revenue of about € 2.6 billion in 26 countries with approximately 9,400 employees worldwide, the Economica Institute of Economic Research calculated the gross value-added impacts and employment effects emanating from AGRANA's activities.

AT A Glance

JOBS

Internationally, AGRANA safeguards around 40,000 jobs. 8,721 of which are in Austria.

GROSS VALUE ADDED

Internationally, nearly € 1.7 billion. Over 40% (€ 734.4 million) is generated in Austria.

Segments

48% of the total gross value added is generated in the Fruit segment.

Investment

As a result of its investment activity, the AGRANA Group globally generates a further € 290,7 million of total gross value added and secures 8,296 jobs.

Gross Value Added

Gross Value Added

AGRANA Group

The AGRANA Group is a global player of international relevance. Gross value added of € 644.1 million was generated in the 2017|18 financial year as a direct result of the Group’s business operations.

The total gross value added of the AGRANA Group, comprising the direct, indirect and induced effects, amounts to nearly € 1.7 billion.

This is equivalent to around 0.5 % of Austria’s GDP. Totalling € 831.8 million, the largest single contribution (48%) is made by the Fruit segment, followed by the segments Starch, with € 514.3 million (30%), and Sugar, with € 376.5 million (22%).

The largest economic ‘lever’, expressed as the multiplier, is also found in the Fruit segment: a multiplier of 2.8.

AGRANA In Austria

AGRANA plays a particularly significant role in Austria. A country-level analysis reveals that AGRANA directly and indirectly generates value added of € 743.4 million throughout Austria.

More than 40% of total value added is therefore generated in Austria. Every 434th euro generated in Austria is attributable to AGRANA . The largest effects are achieved here by the segments Starch (€ 403.9 million), followed by Sugar (€ 175.7 million) and Fruit (€ 163.8 million). Also notable are the multipliers in the Sugar (2.14) and Starch (2.06) segments. Every euro generated in these segments triggers more than one additional euro of value added in other sectors of the economy.

 

INVESTMENT EFFECTS

INVESTMENT EFFECTS

Besides the effects attributable to business operations, the investment activities of the AGRANA Group also generate additional gross value added.

Globally, the total investment volume of nearly € 141 million in the 2017|18 financial year triggered a total gross value added effect of more than € 290.7 million. The employment effect generated as a result amounts to a total of 8,296 jobs. Viewed by segment, the € 49 million invested in the Fruit segment accounted for the largest total economic contribution, namely € 118.9 million. In the Sugar segment, investments totalling € 32 million triggered a total economic value added effect of € 60.3 million. The € 59.4 million invested in the Starch segment resulted in € 111.5 million of value added. Expressed in jobs, this is equivalent to 6,407 jobs in the Fruit, 960 jobs in the Starch segments and 929 jobs in the Sugar segment, respectively.

 

 

The results of the study bear out the international significance of the AGRANA Group, demonstrating a macroeconomically relevant direct effect of 0.0007% and a total impact of 0.002% of global gross domestic product (GDP).  The direct gross value-added effect of the AGRANA Group's ongoing operations (as distinct from investment effects, discussed below) in the 2014|15 financial year was € 510.6 million. The total gross value-added contribution of the AGRANA Group, which consists of direct, indirect and induced effects, was almost € 1.5 billion. This is approximately equivalent to the value-added generated by all Austrian pharmaceutical manufacturing, or all legal advice provided in Austria. Put another way, the amount of almost € 1.5 billion represents about 0.5% of Austrian GDP. At € 860.2 million or 58% of the Group's gross value-added, the largest contribution was made by the Fruit segment, followed by Starch at € 333.1 million and Sugar at € 292.0 million. Likewise, the greatest macroeconomic leverage expressed in a multiplier is exerted by the Fruit segment: Its multiplier of 3.03 means that for every euro of gross value-added generated in the Fruit segment of the AGRANA Group, two additional euros of value-added were created in other companies worldwide. In terms of geographic distribution, the EU-28 countries accounted for 77.1% of gross value-added, ahead of North America at 8.2% and the rest of Europe at 5.7%. 

Each job at AGRANA created up to five more worldwide

All told, the ongoing operations of the AGRANA Group in 2014|15 were the basis for close to 40,000 jobs around the world: Tied to the 8,708 direct jobs in the AGRANA Group were about 31,000 other positions worldwide, including 29,103 in agriculture as a highly employment-intensive industry. This resulted in the above-average employment multipliers (which are therefore not comparable with other industries) of 5.81 in the Starch segment, 5.52 in the Sugar segment and 3.95 in the Fruit segment.

Somewhat more than one-half of the aggregate effect of 39,678 jobs was attributable to the Fruit segment, with 21,827 jobs or 55% of the total, while Sugar was responsible for 12,834 positions (32.3%) and Starch, for 5,017 jobs (12.6%). Of these jobs, 65.9% were in the 28 EU member countries – the European Union's relatively higher 77.1% share of gross value-added reflected the higher productivity in the EU. In terms of employment effects, Asia followed at 2,248 or 5.7% of jobs, and North America was third at 2,024 positions or 5.1%.   

Investment by AGRANA added a further 4,622 jobs

Besides the impacts of ongoing operations, AGRANA's capital expenditures gave rise to one-time additional, gross value-added effects. Globally, the total capital expenditures of the prior, 2014|15 financial year of about € 91 million resulted in a total value-added effect of approximately € 171.5 million. The associated employment impact amounted to a total of 4,622 person-years. The largest portion of these investment effects occurred in the EU, with gross value-added of € 124.3 million (72.5 % of the global total) and with 2,260 supported jobs in the EU economy (48.9 %).  

AGRANA's economic footprint

 

Gross Employment Effects

Gross Employment Effects

AGRANA Group

AGRANA Group

AGRANA directly accounted for 8,730 jobs in the 2017|18 financial year. Given its links to upstream activities and due to income-related effects, AGRANA safeguards around 31,000 further jobs.

More than half of the total effect of the total of 39,506 jobs, namely 21,651 jobs, are attributable to the Fruit segment, followed by the Sugar segment, with 11,345 jobs, and the Starch segment, with 6,510 jobs, respectively. Due to the many labour-intensive upstream activities, for example in the agricultural sector, the employment multipliers of the AGRANA Group are exceptionally high, falling within a range of 4.53 in the Fruit segment to 6.62 in the Starch segment. This means that every job at AGRANA creates up to a further five jobs worldwide.

 

AGRANA in Austria

In Austria alone, the 2,251 direct jobs at AGRANA account for a total effect of 8,781 jobs. As a result, every 500th job in Austria is directly or indirectly dependent on AGRANA.

Definition

Definitions

Gross value added (GVA)

As an index number for the macroeconomic total calculation, this is defined as the total value of the goods and services generated in the production process (gross production value) less the value of the goods and services consumed, processed or transformed in the production process (advance services). Otherwise expressed, the gross value added represents the amount that is available to remunerate the production factors of labour (wages and salaries) and capital (profit, interest on borrowed capital and deductions).

Direct effects

Include the value of gross value added or employment that is generated directly in the enterprise in question or which creates jobs.

Indirect effects

Come into existence through the advance services drawn upon by the enterprise in question in other sectors (e.g. the manufacture of machinery, fertilisers, etc. for agricultural products).

Induced effects

The jobs created and/or secured by the direct or indirect effect generate income that is then spent again by the employees (above all for consumption purposes). This stimulates end-consumer demand in the relevant sectors (especially in the retail sector).

Multipliers

represent the extent to which the total effects exceed the original direct effect. A multiplier is calculated as the sum of the total value added divided by the direct economic value added generated by AGRANA.