Ukrainian sugar industry has an untapped potential

04.03.2019

Such an opinion was expressed by the participants of «Sugar World 2019», the 3-rd International Congress for Sugar Beet Producers and Processors, organized by the National Association of Sugar Producers of Ukraine, which took place on February, 27 and gathered about 450 sugar beet growers and sugar producers, international experts and representatives of commercial companies.

Andriy Dykun, the Chairman of «Ukrsugar» Association, opened the event, noting that despite crisis, sugar industry continues its development:

«Today sugar industry occurs in a difficult situation, however, there have been even much more difficult times. Despite the lack of governmental support and unfavorable market conditions, many companies managed to increase their capacities and switche to other fuels. We have been developing and showing our significance and, according to our estimates, sugar industry occupies the second place in Ukrainian agricultural sector in terms of paid taxes».

Ukraine has enough potential to build its business in the international market — this opinion was expressed by the participants of the panel discussion «Further development of the global sugar market and the role of Ukrainian producer in it». Thus, Vlad Ghicioc, the trader of «Alvean», noted that in recent years Ukraine has established effective and competitive production, but it is still worth working on the quality of products and the range of packaging, because buyers need a choice.

«Despite the projected global deficit in 2019/2020 MY, Ukrainian sugar production will decrease to 1,4-1,6 million tonnes, and the harvested area will decrease by 11% — to 250 thousand hectares», — commented the head of Sucden analytical department Marina Sidak.

She said, high grain prices could lead to a higher, than expected, reduction in sugar beet areas in 2019/2020 MY, however, export will remain at the last year's level as there will be an increase in transitional sugar reserves due to accumulated unrealized export potential.

And although harvested areas decreasing, beet yields are constantly increasing, which indicates that Ukrainian agrarians are working on the quality raw materials production.

«Ukrainian sugar industry has good prospects for development, because the country is well known for its fertile soils. In addition, you have a favorable climate, enough moisture, there are all conditions for development», — explained the chief product manager of SESVANDERHAVE Stefan Hilis, opening «Sugar beet growing technologies» section.

Oleksiy Myronov, the marketer of «TAK» state enterprise, supported him, noting that Ukraine has always been a sugar country, and the reduction in harvested areas and production does not mean that the industry is falling.  

«We support this Congress for the first time and we are very impressed with the organization level, because we have managed to realize all the plans», — explained Oleksiy Myronov.


Ukrsugar

Readers choice: TOP-5 articles of the month by UkrAgroConsult