Ukraine could cut sugar production by 26%

Sugar production in Ukraine in the new season could fall by 23-29%, to 1.3-1.4 million tonnes, and the number of sugar refineries from 42 operating this season to 343-35, the Ukrtsukor national association of sugar producers has said.

“We are already seeing a reduction in the acreage of sugar beet this year and, of course, it will have its own “imprint” this autumn, when significantly fewer sugar refineries are launched compared with the 2018/2019 season. According to our estimates, it will be 34-35 enterprises, while in the current season 42 refineries worked,” Deputy Chairperson of the association Ruslana Butylo said.

According to her, given the reduction in acreage and the number of operating refineries, caused by the global sugar surplus, a significant reduction in sugar production and price hikes are predicted.

“The global surplus of recent years has not had the best effect on the state of sugar production in Ukraine. Excess sugar “pressed” on prices and lowered them more and more, far beyond the break-even point of production, diluting all financial reserves of producers, both in the world and in Ukraine. At the moment, it is rather difficult to predict the yield and sugar content of beets, the sowing of which is almost completed. However, we can assume that sugar will be 23-29% less this autumn – 1.3-1.4 million tonnes. This is the lowest amount of production since 2013,” Butylo said.

Open4business.com.ua