Business news from Ukraine

UKRAINE PRODUCES 4,920 TONNES OF SUGAR

As of September 3, sugar production in Ukraine amounted to 4,920 tonnes, a total of 49,600 tonnes of sugar beet were processed.
According to a report on the website of the National Association of Sugar Producers Ukrtsukor, on the indicated date two sugar factories were opened – Selysche sugar refinery (Selysche, Cherkasy region, part of the agricultural holding Panda) and Haisyn sugar refinery (Vinnytsia region, Ukrprominvest-Agro).
As of September 6, the website of the Ministry of Agrarian Policy and Food does not have data on harvest of sugar beets by Ukrainian farmers.
As reported, the current season of sugar beet processing started in the country on August 21.
The Ministry of Economy expects sugar production in Ukraine in the 2021/2022 marketing year (MY, September-August) at 1.4 million tonnes, which is 30% more than in the last MY. The total supply of this product in the current season will amount to 1.74 million tonnes due to the growth of its production in the current MY and its significant residues (0.42 million tonnes) transferred from the last MY, which will be sufficient to meet the domestic demand, which is approximately 1.25 million tonnes.

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SUGAR PRODUCTION IN UKRAINE WILL GROW BY 30%

Sugar production in Ukraine in the 2021/2022 marketing year (MY, September-August) is expected to reach 1.4 million tonnes, which is 30% more than in the previous MY, the total sugar supply in the country will be sufficient to meet domestic demand, according to the Ministry of Economy.
According to a report on the agency’s website, taking into account the growth in sugar production in the current MY and its significant residues (420,000 tonnes), which are transferred from the last MY, the total sugar supply this season will amount to 1.74 million tonnes. The Ministry of Economy specified that these volumes will be quite enough to meet domestic demand, which is approximately 1.25 million tonnes.
“At present, the sugar industry of Ukraine allows producing up to 2 million tonnes of beet sugar per year, which fully meets the country’s internal needs,” the ministry explains.
The Ministry of Economy recalled that in the 2020/2021 MY sugar production in Ukraine decreased by a quarter compared to 2019/2020 MY, to 1.1 million tonnes due to unfavorable weather conditions.
In the current MY, 33 enterprises of the industry intend to produce sugar, which corresponds to the data for 2020, the report says.
“There is a gradual decrease in sugar consumption by Ukrainians. If in 2008 the average Ukrainian consumed about 41 kg of sugar and sugar-containing products during the year, then in 2020 – 28.5 kg. Such a decrease is also associated with a change in food culture and a decrease in sugar consumption in related industries,” the Ministry of Economy summed up, citing data from the State Statistics Service.

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LARGEST SUGAR PRODUCER IN UKRAINE ASTARTA CUTS SALES BY 25%

Astarta, the largest sugar producer in Ukraine, over January-June and April-June 2021 reduced sugar sales compared to the same periods in 2020 by 25%, to 55,460 tonnes and 113,600 tonnes, respectively, while over the first half and the second quarter, the products sold by it went up by 66%, to UAH 17,280 per tonne and UAH 16,690 per tonne, respectively.
According to the company’s report on the Warsaw Stock Exchange on Friday evening, sales of corn by the agricultural holding in the second quarter of 2021 fell by 21% compared to the second quarter of 2020, to 78,650 tonnes, while the price increased by 9%, to UAH 4,950 per tonne. In the first half of this year, its sales decreased by 55%, to 151,290 tonnes with a rise in price of corn by 17%, UAH 5,270 per tonne.
In addition, in the second quarter of 2021, Astarta sold 34% less soybean meal than in the second quarter of 2020 – some 23,750 tonnes (with a rise in price of 45%, to UAH 14,570 per tonne); 49% less soybean oil – 4,210 tonnes (its price has doubled to UAH 37,840 per tonne); 5% more milk – 23,650 tonnes (it has risen in price by 20%, to UAH 11,600 per tonne); and also twice as much wheat – 2,240 tonnes (it has risen in price by a quarter, to UAH 6,550 per tonne). During the specified period, the company has increased sales of sunflower seeds 4-fold, to 135 tonnes, with their rise in price 2.7 times, to UAH 19,180 per tonne.
According to the results of the first half of 2021, Astarta sold 23% less soybean meal than in the first half of 2020 – some 63,520 tonnes (with a rise in price of 59% to UAH 14,960 per tonne); 13% less soybean oil – 16,840 tonnes (with a rise in price by 76%, to UAH 31,580 per tonne); 4% more milk – 47,850 tonnes (it has risen in price by 17%, to UAH 11,680 per tonne); and also 37% more wheat – 6,070 tonnes (it has risen in price by 56%, to UAH 7,410 per tonne). During this period, the company increased sales of sunflower seeds 37 times, to 3,720 tonnes, with their price doubling to UAH 11,590 per tonne.
Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes eight sugar factories, agricultural enterprises with a land bank of 243,000 hectares and dairy farms with 25,000 animals, seven elevators, a biogas complex and a soybean processing plant in Poltava region (Globino Processing Plant LLC).

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LARGEST UKRAINIAN SUGAR PRODUCER WILL LAUNCH PRODUCTION OF SUGAR SYRUP

Agroholding Astarta, the largest sugar producer in Ukraine, in July will invest UAH 500,000 in the installation of a technological line for the production of inverted sugar syrup at Novoorzhytske sugar plant (Novoorzhytske, Poltava region), the release of the first batch of products is planned for August 2021, the company’s press service said.
“The main consumers of inverted syrup will be Ukrainian beekeepers. This product can be used to feed bees, since it allows you to preserve the offspring of bee colonies and increase their productivity. Our product will allow beekeepers to increase the efficiency of their apiaries, introduce modern technologies in this process and maintain a leading position in honey production in the world,” curator of the project Ivan Chepak said.
According to the company, inverted sugar syrup is also in demand in confectionery industry, and if the pilot project is successfully implemented, Astarta will expand its production and expand sales markets. Developing this project, the company is increasing the volume of products with a higher degree of processing, forming the added value of its products, the report explains.
As reported, Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It includes five sugar factories, agricultural enterprises with a land bank of 220,000 hectares and dairy farms with 22,000 animals, seven elevators, a biogas complex and a soybean processing plant in Poltava region (Globino Processing Plant LLC).

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UKRAINIAN SUGAR PRODUCERS ASK NOT TO PERMIT DUTY-FREE IMPORT OF SUGAR

The National Association of Sugar Producers of Ukraine Ukrtsukor appealed to Minister of Economy Oleksiy Liubchenko with a request not to support the initiative of the Cabinet of Ministers to permit duty-free import of 120,000 tonnes of sugar until October 1, 2021. According to an appeal to the minister, published on the association’s website, the Ukrainian sugar industry is able to fully meet the needs of the domestic market, since as of June 1, sugar stocks in the warehouses of manufacturing plants amount to 300,000 tonnes, excluding stocks of agricultural producers, retail chains and the population. At the same time, according to Ukrtsukor, the average monthly sugar consumption in Ukraine is 80,000 tonnes.
“In addition, at the beginning of 2021, some 40,000 tonnes of white sugar were imported. Also in May 2021, Ukraine imported 60,000 tonnes of raw sugar from Brazil for industrial processing at two sugar factories into white sugar, and another 27,000 tonnes of raw sugar are already on the way to Ukraine and will be delivered by the end of June,” the association said in the appeal to the minister.
The above supplies, according to Ukrtsukor, will meet the domestic demand for sugar by the new season.
The association noted that in 2021 in Ukraine, the area under sugar beet crops increased compared to last year, which, together with favorable weather conditions, makes it possible to expect a sufficient yield of sugar beet. In turn, this will contribute to the full supply of the domestic market with sugar in the 2021/2022 marketing year (MY), as well as a possible decrease in sugar prices at the end of August 2021 with the beginning of the sugar making season.
As reported, the Cabinet of Ministers in June proposed to permit duty-free imports of 120,000 tonnes of sugar until October 1, 2021 in order to stabilize the situation in the market for this product.

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UKRAINIAN CABINET WANTS TO ALLOW DUTY-FREE IMPORT OF SUGAR

The Cabinet of Ministers of Ukraine has proposed to the Verkhovna Rada to make the import of 120,000 tonnes of sugar duty-free until October 1, 2021 to stabilize the situation on the market for this product.
The government approved the corresponding draft law at a meeting on June 2.
The draft law proposes to the Verkhovna Rada to supplement Section XXI “Final and Transitional Provisions” of the Customs Code of Ukraine with Clause 4.4, providing for appropriate changes in the taxation of sugar imported into the customs territory of Ukraine.
According to an explanatory note to the document, Ukraine in the 2020/2021 marketing year produced about 1.1 million tonnes of sugar with the demand of the domestic market of at least 1.3 million tonnes due to unfavorable weather and climatic conditions and a reduction in the cultivated areas of sugar beets. The limited supply of sugar on the market caused a sharp rise in prices for this product, while the growth of its imports restrains the depreciation of the hryvnia exchange rate.
The document specifies that the import quota of 120,000 tonnes will be distributed among importers in the order of priority of filing applications with the customs authority.
As reported, the Ministry of Economy in April 2021 announced the impossibility of stabilizing prices on the Ukrainian sugar market using market mechanisms due to a decrease in domestic sugar production. The agency proposed a temporary zeroing of the import duty on the import of 120,000 tonnes of white sugar until October 1, 2021, which will reduce the rush demand for it in the domestic market and ensure the competitive production of sugar-containing products.
According to the ministry, the duty on the import of sugar into Ukraine is currently 50% of its customs value.

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