Sugar in Ukraine will rise in price due to production cuts
Due to depletion of reserves and a drop in production, sugar prices in Ukraine will rise. The founder and majority shareholder of the holding, Viktor Ivanchik, announced this during a telephone conference for investors of the largest sugar producer in Ukraine - the agro-industrial holding "Astarsta", reports "Agribusiness today».
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“We expect that the rise in prices (for sugar - ed.) will primarily take place in Ukraine, since reserves are depleted, sugar production volumes this year will be significantly lower than last year. We estimate a year-on-year decrease of about 1 million tons of sugar. Production volume this year could be 1,1-1,2 million tons, I think, no more,” he said
According to the expert, in October-November (the period of mass sugar production), sugar prices will traditionally decrease. However, before the end of the year, due to increased demand from many consumers, sugar prices will resume. Therefore, “... we consider the average annual price and the price of the second half of the year (third and fourth quarters) at the level of 10-10,5 thousand UAH per ton,” he believes.
Victor Ivanchik added that this forecast is conservative, because in those years when sugar production volumes are reduced, the market, expecting a shortage, begins to actively buy it in order to maintain its investments.
According to the forecasts of the consulting agency "UkrAgroConsult", sugar production in Ukraine in the new season will decrease to 1,3 - 1,4 million tons.
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