Ukrainian Sugar Producers Operate at a Loss
Wholesale sugar prices in Ukraine have fallen to 20 UAH/kg, below production cost, creating financial pressure for producers, said Ukrtsukor head Yana Kavushevska. Prices were 22.99 UAH/kg in August and 23.63 UAH/kg a year ago. Experts expect a recovery soon as domestic supply tightens, inventories drop, and exports rise.
This was stated by the head of the National Sugar Association “Ukrtsukor” Yana Kavushevska in a comment to “Komersant Ukrainian”.
Currently, the average wholesale price is 20 UAH/kg, which is below the cost price. For comparison: in August, it reached 22.99 UAH/kg, and a year ago – 23.63 UAH/kg.
“We very much hope that the price of sugar will rise, as it is currently below the cost price. Yes, in August, the average wholesale price was 22.99 UAH/kg, and now it is 20 UAH/kg… For comparison: a year ago in November – 23.63 UAH/kg… This puts the domestic sugar industry at risk, as it is impossible to sell goods for a long time at a price below the cost price,” emphasized Kavushevska.
Experts predict that price recovery is possible in the coming months. This may be influenced by a reduction in supply in the domestic market, seasonal inventory reductions, and increased export supplies.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Agro News
