Volga Baikal AGRO NEWS Update on the Sugar Production in the 2021/22 season !!!
In the 2021/22 season sugar production can amount up to 5.8 million tons.
In the 2021/22 season the sugar production can reach 5.8 million tons, taking into account the processing of syrup and molasses and the fact that farmers will be able to harvest sugar beet from the entire area, which is 1 million hectares, and preserve the harvest with minimal losses until processing. This forecast was announced by the leading expert of the Institute of Agricultural Market Conjuncture (IKAR) Evgeny Ivanov at the XIII branch business conference “Agroinvestor” Russian Crop Production – 2021/22, which took place on September 24 in Moscow. Evgeny Ivanov noted that since 1997, the production of beet sugar in Russia has increased six times!
This volume is quite enough to meet the domestic market needs for sugar, and even for small exports. In addition, the productivity of sugar beet is increasing: over the past 25 years, the yield of sugar from 1 hectare of crops has increased five times. “Provided that a normal sugar beet harvest is obtained to meet domestic needs and a small export, it is enough to sow no more than 950 thousand hectares, sowing more than 1 million hectares can lead to overproduction and a collapse in domestic prices,” – E. Ivanov is sure.
This year, in the whole country, the area under sugar beet has grown by 9%, in the South – by 14%. The Central Black Earth region traditionally dominates in the regional structure of crops — about 60%. Recently, the share of areas in the South has increased from 20% to 24.4%, Altai – from 1.4% to 2.5%. The share of Volga-Ural decreased from 23% to 13%. Ivanov calls this decline objective, since the macroregion is not the most favorable for the production of sugar beet, and the trend to reduce the area is likely to continue. Beet yields this year, according to ICAR estimates, have increased by 7% on average across the country, and by 42% in the South (from an ultra-low level – 2020).
E. Ivanov also recalled that from 2016 to 2019, there was an overproduction of sugar in Russia, as a result of which it was possible to seriously increase exports. In the 2019/20 season, our country became the sixth sugar exporter in the world with a supply of 1.5 million tons of sugar.
The traditional markets for Russian sugar are the post-Soviet space, as well as some other markets where it is possible to export by road and rail: to China, Mongolia, Afghanistan, Iran, Serbia. Also in the 2019/20 season, for the first time in history, a large (85 thousand tons) delivery of Russian sugar by sea containers through three ports to the markets of twenty countries was carried out. E. Ivanov added that container shipping opens up wide opportunities for the supply of ready-made food to various parts of the world that cannot be covered by road and rail.
It is important to understand that the incredibly high exports of the season before last were provided by a serious dumping of our prices relative to world prices, Ivanov added. “In February 2020, the wholesale price at the factories was 37% lower than on the London Stock Exchange, which largely compensated for expensive logistics and sometimes inadequate quality of sugar and packaging,” – he stressed.