Cygnet upgrading sugar plant to cut gas use amid tighter EU quotas

During the 2024 season, the Andrushkivka sugar plant, part of the Cygnet group, produced 32,500 tons of sugar, all of which met the highest quality standard — Category I under Ukrainian DSTU specifications. The update was shared by Andriy Shovdra, CEO of Sygnet Center, during the "AgroTour: Processing on the Move" initiative by Latifundist.com and Raiffeisen Bank.

According to Shovdra, it is difficult to forecast output for the 2025 season, but it is expected to be lower than last year. This is due to internal factors like reduced sugar beet acreage, as well as external ones, including market conditions, weather, and resource costs and availability.

“Gas prices and availability are decisive. We’ve looked into alternatives like LPG and fuel oil, but natural gas remains our primary fuel for now. However, shortages and high prices will push up production costs. This means higher prices for consumers and lower profitability for producers,” said Shovdra.

To address this, the company is working to reduce gas usage, aiming to bring it down to 25 cubic meters per ton of sugar beet. The plant is gradually modernizing its equipment and improving processes to operate more efficiently.

Cygnet sells sugar both domestically and internationally. Last season, 70% of its output was exported to EU countries. Due to current restrictions and quota limits, the company is now exploring new global markets. Since the start of the 2025 season, Cygnet has shipped sugar to the Balkans and other destinations.