Ukraine. Sugar beet harvested areas will be quarter reduced

20.02.2019

According to the forecasts of the Analytical Department of «Ukrsugar» Association, in the current marketing year sugar beet harvested area will amount to 220-230 thousand hectares, which is almost four times less than last year.

«Sugar beet sowing campaign will begin in one and half month and we have disappointing forecasts of the harvested areas. According to our data, in the current year, the ​​sugar beet harvested area, in the most optimistic circumstances, will amount to 220-230 thousand hectares, which will become the lowest level for the last 5 years. Thus, it will be reflected in sugar production and the number of working sugar refineries», — commented the deputy chairman of «Ukrsugar» Association Ruslana Butylo.

However, the situation may improve, as many farms and sugar refioneries have not yet decided whether they will work next season due to currency market fluctuations and producers' concerns about increasing production costs for both sugar beet and sugar. However, it's still too early to make sugar price forecast for next season, as according to «Green Pool» analysts, the global sugar market will swing into a deficit of 1,36 million tonnes in 2019/20 season allowing to dampen minor currency risks.

«It is clear that diversified companies that produce export quality sugar, will prefer to export when prices rise. Thus, contracts will help to minimize foreign exchange risks and improve the price situation in domestic market. That is why we are actively working with sugar beet producers, to ensure that all sugar refineries are supplied with raw materials, because according to the global deficit forecasts, it is unnecessary to significantly reduce the harvested areas. On February 27, the 3-rd International Congress «Sugar World 2019» will gather sugar beet producers and processors in order to analyze the situation on the global market in details», — concluded Ruslana Butylo.

Recall that in 2018/2019 MY, 42 sugar refineries produced 1,82 million tonnes of sugar and processed 13,6 million tonnes of sugar beet.


 Ukrsugar

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