Despite a significant reduction in the area under sugar beet (from 311 thousand hectares to 280 thousand hectares), and, accordingly, a decline in sugar production, the market is waiting for another surplus season. Such a forecast in an interview with “APK-Inform” was expressed by Ruslana Butylo, Head of the Analytical Department of the National Association of Sugar Producers “Ukrsugar”.
According to the expectations of the association, Ukrainian plants in the new 2018/19 MY will produce 1.9 million tons of sugar, which is 11.2% less than last season.
But this will be quite enough to meet the needs of the domestic market and even fulfill export contracts, the analyst says.
As of September 26, 31 plants started the sugar refining season, in total, 42 are planning production, 4 less than in the previous season.
“These are market conditions now, that not everyone considers it profitable to launch capacities,” explains Butylo, “Last year, sugar prices dropped significantly. In addition, the projected global shortage of 10 million tons also comes out. This all affects the cost of sugar all over the world.”
Export deliveries of the Ukrainian sweet product are expected at last year’s level, 500-600 thousand tons. The main markets for it are Uzbekistan, Turkey and Azerbaijan.
But, given the excess sugar in the world, they will still have to fight for these markets, according to Uksugar.