Sugar exports from Ukraine in 2018/19 dropped 27 pct
In 2018/2019 (September-August) Ukrainian producers exported 409.8 thou. t of sugar worth USD 144.3 mln, almost 27% less from the previous marketing year (564 thou. t), the National Association of Sugar Producers of Ukraine (Ukrsugar) reports. The geography of exports saw some changes.
"In 2018/19, we can see a slight change in the geography of our deliveries. Although Uzbekistan remains the leader in terms of imports, shipments to this country significantly decreased from 210 to 96 thou. t. Azerbaijan with 74 thou. tons of imports ranked third last season (43 thou. t), whereas in 2018/19 the country rose to the second place. Tajikistan holds the third position with 36 thou. t in 2018/19 vs. 16 thou. t in 2017/18 (9th position)," comments Ruslana Yanenko, Deputy Chairman of the Board of Ukrsugar.
The expert noted that the share of supplies to Uzbekistan in total exports had decreased from 37% in 2017/18 to 24% in 2018/19. The reasons for the reduction in shipments, in her view, is primarily the change in Uzbekistan tax policy and a large number of logistic problems occurring during the season.
"Israel and Libya hold 7 and 8 places in the rating of importers. Ukrainian sugar producers made efforts to diversify the export directions as much as possible," noted the Deputy Chairman of the Board of Ukrsugar.
The expert forecasts an increase in sugar prices on the London Stock Exchange the next season which is expected to affect the domestic market. The world deficit and reduction of sugar production in Ukraine will be another factor of price rise.
"Russia may become a serious competitor next season, as it expects sugar overproduction and, consequently, the struggle for Central Asian markets will be more intense," Ruslana Yanenko says.
As estimated by the analytical department of Ukrsugar, sugar export in 2019/2020 should reach 300 thou. t.
Sugar production season 2019/20 in Ukraine started in early September. As of October 2nd, 27 plants started beet sugar production season. Plants produced 251.9 thou. t of sugar.