IKAR in Mass Media

Russian sugar output, imports seen falling-analysts

30 июля 2009 года

MOSCOW, July 14 (Reuters) - Russian 2009/10 white sugar output from domestic beets is set to fall below 2.9 million tonnes from the record 3.5 million a year ago, the Institute for Agricultural Market Studies (IKAR) said in its monthly report.

"After nine years of stable growth, sugar beet output this season is expected to fall," the report, seen by Reuters on Tuesday, said.

It said last month most sugar beet plantings examined by IKAR in Russia were in good condition.

But in the Southern Federal District some plantings suffered damaged from hail, the report said.

Some fields in the southern Krasnodar region were hit by frosts and had to be 80 percent resown with sugar beets and 20 percent with other plants. Farmers used less fertiliser than a year ago, which may also cut yields, it said.

The sowing campaign has been delayed by 2.5-3 weeks this year and a shortage of rain in central Russia has delayed the development of sugar beets.

The start of the beet sugar refining season was also expected to be delayed by 1-4 weeks mainly in the regions along the Volga river, Urals and the Southern Federal District, where the most notable decline in yields was expected due to drought, IKAR said.A decline in the sugar beet output has been expected, as the area sown in Russia with sugar beets for this year's crop has shrunk 2.5 percent year-on-year to 798,000 hectares.

The country's sugar lobby, the Russian Sugar Producers' Union expects Russia to refine 3.1 million tonnes of white sugar from domestic beets this season.

IMPORTS FALL ON HIGH STOCKS, COSTS

IKAR expected Russia's raw sugar imports to fall to 250,000 tonnes in July from 411,360 in June and 503,698 tonnes in July 2008. Imports from August could fall even further due to high refining costs, it said.

"A decline in imports is compensated by high domestic stocks, which were 1.5 million tonnes by the end of June, without taking into account raw sugar stocks," it said.

It added that the seasonal demand for sugar from households to produce domestic jams and lemonade is lower this season, as rains and cold weather have pushed up berry prices. Russia, which was the world's top sugar buyer until it was overtaken by the European Union in 2008/09, refined more than half of the sugar it consumes from domestic beet in the last few years and most of the remainder from imported cane raws.

Russia consumed 5.7 million tonnes of white sugar in 2008.

The Russian Sugar Producers' Union said in March that Russian raw sugar imports this year could fall to 2 million tonnes from 2.29 million tonnes in 2008.

Source: Reuters | #sugar | Comments: 0 Views: 70

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