In the current price range, Ukrainian sugar is competitive with Brazilian sugar – opinion

In the current price range, Ukrainian sugar is competitive with Brazilian sugar, but to finally resolve this issue, it is necessary to optimize the logistics of the “big water”: to ensure that shipping container lines pass through the ports of Greater Odesa, Roman Ogorodov, CEO of Ukrprominvest-Agro, told Latifundist.com.

“And we will have to do this, because this season sugar will be produced in Ukraine with a large surplus, and we will have to export 50% of this sugar – up to 1 million tons. This is a key task for the industry,” he said.

Ogorodov noted that currently, sugar beet prices on the wholesale market are at the level of 24 thousand UAH including VAT, and “this fully satisfies market participants,” despite the fact that at the end of last season they were much higher – reaching 32 thousand UAH.

“Sugar production is still profitable. Moreover, even if sugar beet prices fall even further, this will not significantly affect the situation, because the processing industry has a cost margin. Yes, the margin may decrease several times. But, compared to other products, this is an acceptable story,” Ogorodov added.

Tags: Ukraine, Brazil, prices, sugar