Speech by A. Bodin, the Chairman of the Board of Soyuzrossahar, at the sugar conference, Mar 17, 2017

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RUSSIA

Speech by A. Bodin, the Chairman of the Board of Soyuzrossahar, at the sugar conference (theses):

By the end of 2016, surpluses of 1.5 million tons were accumulated in Ukraine, Belarus and Russia. In Turkmenistan, the sugar beet yield increased 2 times due to the arrival of Shchelkogo-Agrokhim, which supplied seeds and technology. They are building a new sugar plant and can close sugar imports. Ukraine showed that it is possible to export sugar by delivering 400 thousand tons to foreign countries. Though, they traded at least 40 dollars cheaper than Russia. The price of beet was almost twice cheaper than in Russia and Belarus. Ukrainian sugar has entrenched in the world market. Armenia started to buy sugar from the south of Russia.

Belarus has produced almost 600 thousand tons. For the first time, Russian sugar began to arrive in Belarus. Kazakhstan has sharply reduced the consumption of Belarus-made sugar, with the largest volume supplied from Russia last year. The preferential regime of white sugar was ceased in Kyrgyzstan. Production increased three-fold and they are going to launch the second processing plant.

Russia. Nobody expected production of 6.1 million tons giving a surplus of more than 500 thousand tons. The task is to export the commodity to the countries of Central Asia and through the Black Sea. Companies are testing the logistics of new export sales markets.

The production capacity is expected to increase by 18% in Russia in 2017. In CIS countries, sugar beet crops are expected to grow by 6%. The increase in sugar production can be estimated at +1%, but everything will depend on the weather. Imports of raw materials to the CIS countries may be halved. Forecast of Russian exports - 400 thousand tons, Ukrainian - 1 million tons, Belarus - 350 thousand tons.

Soyuzrossahar is discussing with the Ministry of Agriculture and the Federal Antimonopoly Service the implementation of interventions in the sugar market.

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"Agrosila" in 2017 will increase the sugar beet crop by 33%, due to the increase in the production capacity of OJSC Zainsky Sugar. The DC capacity of the plant is 7,600 tons of beets today, and in 2017 the processing capacity will be 8,000 tons per day, gross beet harvest is planned at 1.2 million tons.

UKRAINE

According to Gosstat, the average price for white sugar from producers was – UAH 12,213.03 per ton in February 2017 (RUR 26,355.35/ton at the current rate of the Central Bank of Russia). In January, the average price was UAH 11564.96 / MT (RUR 24956.83/MT).

AZERBAIJAN

In January 2017 Azerbaijan has imported 27 010.7 tons of raw sugar and sugar (an increase of 35.3% compared to January 2016) reported the State Statistics Committee. Export in January have made 2,275.9 tons of sugar.

KAZAKHSTAN

According to the analysis of the data of the FCS of Kazakhstan, the import of sugar raw material (HS code 170112) from the countries of the EAEC was 208.9 tons in the first month of the year (January 2017), imports of white sugar (HS code 170199) - 10.3 thousand tons, almost all the volume was supplied by Russia .

Export and import of Kazakhstan with the countries of the EAEC, for 1 month of 2017, by country