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RUSSIA
The most profitable crops for horticulture in Saratov region are sunflower (return on share - 60-80%) and sugar beet (80%), according to the regional Ministry of Agriculture.
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President of Tatarstan Rustam Minnikhanov is planning a 10% increase in the collection of sugar beet, to reach up to 2.5 million tons in 2017. Last year a harvest of 2.3 million tons of sugar beet was collected in Tatarstan.
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Moscow Arbitration Court has satisfied the claim of the Belgorod State Corporation "Rusagro" to include the debt of RUR 13.08 billion in the third phase of the registry requirements of payments due by "R-Holding" (a subsidiary structure of agricultural holdings "Razgulyay") previously declared a bankrupt.
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In the period February 7 to 13, 2017, consumer prices for sugar decreased by 0.9%; from the beginning of the year (vs. end of December 2016) – by 4.2%, according to Rosstat.
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According to price monitoring by Sugar.ru for the period February 09-16, 2017, the US dollar value has dropped by 4.6% (on Feb 09 RUR 59.51/$; on Feb 16 RUR 56.77/$). Ruble Moscow wholesale price of sugar fell by 1.30 RUR/kg (-3.86%), Krasnodar wholesale price dropped by 1.20 RUR/kg (-3,73%). US Dollar Moscow wholesale price of sugar increased by US$ 0.005/kg (+ 0.88%), Krasnodar wholesale price added US$ 0.005/kg (+ 0.92%).
The negative trend in sugar prices, which has developed at the end of last week, has continued this week dropping prices by another ruble. Officially declared price of 31 RUR/kg (basis Krasnodar), is at least RUR 0.5 less informally. The fall of the dollar closes opportunities for "commodity exports" of Russian sugar to factories in the Trans Caucasus and Central Asia. Compared to last year, the dynamics of export of Belarusian sugar is significantly lower this year. Thus, in February 2016 Belarus has supplied 33 500 tons of white sugar to Russia by rail; as of today (when half of February 2017 is over) - only 7 000 tons. Exports of sugar, on the contrary, shows an increase – 15 000 MT exported in February 01-16, 2017 (in January 2017 - 21 thousand tons). The negative export-import balance of Russia is pleasing, but still cannot solve all the problems of sugar excess.
Regions consistently report about plans to increase sugar beet production in the new marketing year of 2017/18, and, given good yields, it may cause a general fall in prices for beet sugar below production cost, which is currently estimated at 28-32 RUR/kg. In such case a new problem of reducing the cost of sugar will emerge in front of Russian sugar companies, which are developing utterly extensively at large. The obvious areas for such cost reduction are: high-quality seeds and agricultural technologies, desugarization of molasses and energy-saving technologies. Along with adjustment of sugar quality to an internationally accepted standard of 45 ICUMSA (just look at the Ukrainian experience and the volume of their exports), it will help companies to survive in the competition.
KAZAKHSTAN
Sugar beet acreage in the Almaty region of Kazakhstan will increase by 2.7 thousand hectares In 2017 will make up to 9 000 ha, according to the regional akimat. It is planned to collect over 300 thousand tons of sugar beet and produce 30 thousand MT of domestic sugar. In addition, the launch of Aksu sugar factory is planned for the coming season.
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КОММЕНТАРИИ