Ukraine vs Russia. Competition on sugar market

27.09.2016

According to forecasts of Russian experts, in 2016/17 will be the first time that Russia can have excess in sugar stocks and likely will lead to sharp export increase, informs UkrAgroConsult. According to preliminary forecasts, export may be 100-200 KMT (in 2015/16 exports were 6 KMT).

Main rival to Russian sugar will be sugar of Ukrainian production.  Competition will strengthen on CIS markets and in the first course in the Central Asia. According to UkrAgroConsult in January-June 2016 Ukraine exported to CIS market about 33 KMT (40% to Central Asia), in January-December 2015 about 83 KMT (57% to Central Asia).

According to UkrAgroConsult, presently Ukrainian sugar wins due to lower price. But further, when there will be excess on domestic market, price of Russian sugar will be more competitive.

Considering the fact that transit through Russian territory is banned, Ukrainian exporters will have a hard task to save these markets.

 

UkrAgroConsult

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