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Russian Agriculture Sugar Beet Crop 2020 will be Decreased, Gross Harvest is Projected at the level of 2014 !!!
A sharp decline in processing volumes leads to an increase in the cost of sugar
The sugar beet harvest this year is at an extremely low level – in addition to a reduction in sowing, in almost all regions there is a serious drop in yield. As a result, the sugar beet processing season this year will be unusually short, said a leading expert at the Institute for Agricultural Market Studies ( IKAR) Evgeny Ivanov. “The gross harvest will be at the level of the distant 2014 (then, according to Rosstat, dug up about 33.5 million tons), and the capacity of the factories has grown significantly since that time. Recycling this year started one to three weeks later than the previous season. The sugar yield is also low, “he told Agroinvestor“.
In the Krasnodar Territory, on September 24, factories procured 3.9 million tons of sugar beet in test weight, taking into account supplies from the Stavropol Territory and the Rostov Region against 5.4 million tons a year earlier. Processed 3.7 million tons, of which 492 thousand tons of sugar were produced, whereas a year ago there were 5 million tons and 743 thousand tons, respectively. The daily production of sugar is 12.2 thousand tons – almost 3 thousand tons less than a year ago, Ivanov cites data.
In the Rostov region, by September 23, harvesting began in three out of eight beet-growing regions. The yield is 223 c / ha against 349 c / ha in 2019, the gross yield in weight in the field has decreased from 258 thousand tons to 36.5 thousand tons. In the Belgorod region, the average harvest per hectare has decreased from 436 c / ha to 323 c …
The best in terms of productivity are Dankovsky and Stanovlyansky districts of Lipetsk region, where the indicator reached 495 c / ha and 468 c / ha, respectively. Quite good level in Tatarstan – 421 c / ha. In the country as a whole, according to the Ministry of Agriculture, as of September 25, sugar beets were harvested from 316 thousand hectares, or 34% of crops, 11.3 million tons were dug up – 6.4 million tons less than on the same date in 2019. The average yield fell by 80 c / ha to 356.6 c / ha.
In the farms of the Syukden group»Beet harvesting is going well without any problems. However, the yield is lower than last year in all zones, but most of all it decreased in the Krasnodar Territory – by more than 50%, says the company’s financial director Gleb Tikhomirov. ” Syukden»Has already started processing beets. Plants in the Center and the Volga region are expected to complete it in December, enterprises in the South – in October. The company will release 30% less sugar than last season, Tikhomirov estimates.
In the Pokrovsky concern, beet harvesting is nearing completion, and since the beginning of the season, the yield has been gradually decreasing. “Digestion after the last two weeks of rains has dropped, and the infection with rot has worsened – the culling rate for this indicator reaches 15-16%,” says Mikhail Pak, head of the sugar business of Pokrovsky. The concern plans to finish the processing season this year by the end of October. Pak believes that all factories in the Krasnodar Territory will be shut down by November.
Soyuzrossahar reports that the facts of registration and activation of the activities of companies offering to buy sugar under names that are consonant and / or similar to the names of already existing market operators have again been recorded on the domestic market. This was encountered, in particular, by Prodimex and Dominant. However, fraudulent companies have existed as long as the market exists, Ivanov notes. They register legal entities with the names of well-known companies, even create websites, are active in Internet promotion. Ivanov believes that sugar producers are partly to blame for this. For example, some industry players still do not have their own sites, and as a result, scammers have an excellent field for activity.
“It should be borne in mind that a sharp decline in processing volumes leads to an increase in the cost of sugar. In this situation, the main beneficiaries of the increase in sugar prices will be the beet suppliers, ”Tikhomirov continues. According to him, sugar prices rose to 38 thousand rubles / ton, which will have a positive effect on the suppliers of beets, the purchase price from which is tied to the market price of sugar. Although sugar prices have stopped rising with the launch of factories in the Center, since the harvest is expected to be at a record low, prices will remain high, he said. True, it is not excluded that in the near future prices will be adjusted downward, but in the current season several more rounds of sugar price growth are expected.
This year, not only sugar beet but also sunflower, the prices of which have also increased significantly, have failed, Pak notes. “Given the fact that it is much easier to grow than beets, it is possible that in 2021 many farmers will prefer it and further reduce the area under beets,” he says. “And then, if in the next season the yield of agricultural crops is low, we risk getting a sugar deficit. Now we are rescued by carry-over stocks, which balance the market, and in the new season these stocks will no longer be there ”.
Formerly ICAR lowered the forecast for sugar production this season from 5.6-6 million tons to 5-5.4 million tons.This is less than domestic consumption, which is estimated at 6 million tons.However, taking into account the reserves remaining from previous seasons, the sugar deficit in the country not expected in the near future.
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