IKAR in Mass Media

Russia to meet more sugar demand from beet

06 октября 2006 года

MOSCOW, Oct 3 (Reuters) - A record beet crop will allow Russia to produce about 60 percent of the sugar it consumes this year, Agriculture Minister Alexei Gordeyev said on Tuesday, cutting import demand from the world's largest raw sugar buyer.

"More than 25 million tonnes of sugar beet will be harvested this year. From this, we will supply about 60 percent of demand for our own white sugar production," Gordeyev told reporters.

"Six years ago, 80 percent was imported and 20 percent was from our own production," the minister said.

An industry analyst said such a target was possible only in ideal harvest conditions, but Russia would produce more sugar from its own beet in 2006 than last year's 45 percent.

Russia expects record-high beet sugar output of about 3 million tonnes this year, up from 2.5 million last year, as farmers devote more land to the crop and large producers like Sucden, Rusagro and Prodimex invest in their refineries.

"We are not setting ourselves the task of being completely self-sufficient in sugar. Where to find the balance will depend on factors and criteria related to food security," Gordeyev said.

He added that Ukraine could also be a significant supplier of sugar to Russia if required.

Ukraine's government on Sept. 29 forecast 2006 beet sugar output would rise 6.6 percent to 2.03 million tonnes.

Yevgeny Ivanov, analyst with the Institute for Agricultural Market Studies (IKAR), estimated Russia's annual white sugar consumption at between 5.7 million and 5.8 million tonnes.

He said Gordeyev's forecast would require beet sugar output of about 3.3 million tonnes this year.

"Theoretically, anything may happen. If we have ideal weather conditions and every single beet is harvested, then we may have an extra 300,000 tonnes," Ivanov told Reuters.

"But in Russia, it just doesn't happen. I believe the actual harvest will be closer to our estimate of 3 million tonnes."

In 2005, Russia harvested 21.43 million tonnes of sugar beet. Refineries received 18.67 million tonnes and processed 18.01 million, producing 2.5 million tonnes of white sugar.

Source: Reuters | #sugar | Comments: 0 Views: 71

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