A new sugar production season starts this month, when factories start processing newly harvested beets.
According to the forecasts of the Research Center “Institute of Agrarian Economics”, this year’s harvest will amount to 7.5-7.8 million tons of sugar beet, which is equivalent to the production of 1.1 million tons of sugar with an internal annual demand of 1.06 million tons. It is reported by “ProAgro Group” with reference to Mind.ua.
The National Association “Ukrtsukor” states that 23 enterprises have reached the beginning of the current sugar season, which is 10 plants less than last year and is a historical minimum.
In contrast to the bakery industry, where some enterprises dropped out due to the annexation, most beet processing capacities are located far from the areas of active hostilities (except for a few enterprises in Kharkiv and Chernihiv regions) and decided to participate in the season based on economic, not military reasons.
The main problem common to the entire food industry is the price of energy. For sugar producers it is the most serious because of the energy intensity of production. According to the estimates of Oleksandr Nikishin, deputy director of the Hnidava Sugar Plant, if the company used 100% of gas, more than half of the sugar produced (400 out of 700 tons) would have to be used to compensate for the cost of energy.
The high sugar content of beets can help the players – it will reduce gas consumption per unit of production.
