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Ukraine’s sugar output might decline 23% yoy in 2012
Ukrtsukor, Ukraine’s association of sugar producers, forecasted Ukraine will produce 1.8 mmt of beet sugar this year, down 23% yoy (via Interfax). According to the head of the association, the harvested area of sugar beets is likely to decline 17% yoy to 450 ths ha, 7% less than the sowed area.
Alexander Paraschiy: Ukraine consumes 1.8-2.0 mmt of sugar annually, and last year’s production of 2.33 mmt created a large supply overhang that led to a 40% decrease in sugar prices in the last 12 months. If the agency’s forecast comes true, the domestic sugar market will be close to balanced at the end of this year, prompting a recovery in sugar prices. This outlook is encouraging for the main Ukrainian sugar and beet producers, Astarta (AST PW), Mriya (MAYA GR) and Kernel (KER PW), though we are still looking for updates on their sugar sowing conditions.
Источник: Конкорд Капитал
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