In the current 2021-2022 financial year (September 1, 2021 – August 31, 2022), Ukraine produced 1,450,000 tons of sugar, or 130.5% of the production of the previous financial year. Sugar was produced by 33 factories.
According to the sugar supply and demand balance calculated by the Ministry of Agrarian Policy and Food of Ukraine, the transitional balance at the beginning of the 2021-2022 marketing year is estimated at 332,000 tons, which corresponds to the three-month demand of the domestic market (the optimal reserve is the two-month demand of the domestic market).
The sugar supply in the current marketing year amounts to 1.8 million tons, which is quite enough for:
– Provision of the domestic market, the volume of which is estimated at 1.210 million tons (based on the consumption of 28.9 kg/year per person);
– Creation of export potential in the amount of 120 thousand tons (of which 70 thousand tons of sugar and 50 thousand tons of sugar-containing products);
– Formation of significant reserves for the beginning of the 2022-2023 marketing year in the amount of 470 thousand tons, which corresponds to almost five months of domestic consumption.
As for exports, 73,000 tons of sugar, including sugar-containing products, were exported over ten months of the current marketing year.
According to operational information, in 2022 sugar beets were planted on the area of 180.4 thousand hectares.
With a forecast yield of 430-440 ton/ha, the gross harvest of sugar beets (under favorable weather conditions) is forecast at the level of 7,830 million tons, from which, with a sugar yield of 13.5-14%, about 1,080 million tons of sugar can be produced.
According to the “Ukrsugar” Association, the most powerful 23 sugar factories plan to produce sugar from September 1.
Taking into account the transitional balances as of September 1, sugar resources for the period of the next marketing year (September 1, 2022 – August 31, 2023) will fully meet the needs of the domestic market, which is forecast at 1 million 128 thousand tons, of which 1 million 68 thousand tons are for consumption by the population. The export potential in the 2022-2023 marketing year is estimated at 100,000 tons, of which 50,000 tons are sugar and 50,000 tons are sugar products. Transitional balances on September 1, 2023, according to forecast calculations, are expected in the amount of 370 thousand tons – corresponding to almost four months of domestic consumption.
Since there is a sugar surplus in Ukraine, there are no plans to set any export restrictions. (Ukrsugar/Business World Magazine)
