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Inside Sugar

Less acreage, but more sugar in Russia

3 September 2020 - Jeannet Pennings

The sugar beet acreage in Russia has shrunk considerably this year. Sugar production is also estimated to be significantly lower. However, the reserves that the country has built up in recent years can more than fill that gap.

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Russian sugar beet growers have sown less than a million hectares of beets this year for the first time in years. According to the Institute for Agricultural Market Studies (IKAR), the area will amount to 2020 hectares in 927.000. That would be a shrinkage of 19%. The area has shrunk in all growing regions. This seems to rule out a record harvest, as some analysts in the country predict. Even with a good yield.

Quadrupled
Despite the shrinkage, Russia is still by far the largest producer of sugar beet in the world in terms of acreage. Followed by the United States, France and Germany. The yield per hectare, on the other hand, is a lot lower, but the Russians have also made progress in this area in recent years. The country mainly succeeds in achieving a higher average sugar yield from sugar beets. This is what productivity will be like in 20 years quadrupled. And the yield of more than 6 tons per hectare (in 2018 and 2019) is expected to rise further to 7 to 8 tons per hectare in the coming years.

In 2019, sugar production in Russia was estimated at a record 7,2 million tons. That was an increase of 18% compared to the previous year. This was based on a slight increase in area of ​​2% and favorable growing conditions. This year the opposite seems to be the case. The start of the growing season was good, but drought in the summer has slowed growth. The south of Russia in particular is struggling with drought problems.

Delay and lower yield
Despite the delay, beets were fully harvested in most regions at the end of August and the first contours were outlined. In general, there is talk of a lower yield and, especially in the southern regions, lower quality. This is reported by the Russian Agroinvestor. However, according to IKAR expert Evgeny Ivanov, it says nothing about the sugar content. These are determined by many different factors, also in later (storage) stages.

According to Ivanov, it is better to focus on the final sugar production. This is estimated at between 5,6 and 6 million tons this year. An estimate that may be adjusted downwards. It means a significant reduction in sugar production, which was more than 7 million tons last year. However, the sugar reserves that Russia and Belarus have to contend with would more than compensate for this. “Even if Russia produces only 5,1 million tons of sugar this year, there is more than enough sugar for everyone,” Ivanov said.

More exports needed
Consumption in Russia is estimated at 6 million tons of sugar. The country has succeeded in its ambition to be self-sufficient in recent years. A large stock has been built up for 5 years now, which is partly the reason for the current area shrinkage. More exports, another ambition of the Russian government, would be the solution for the country's sugar sector. The Russians see Central Asia as a promising market. For the time being, however, they have to make do mainly with the traditional sales markets that are accessible by rail and road. These are countries such as Armenia, Belarus, Georgia, Kyrgyzstan and Kazakhstan, Afghanistan, Mongolia and North Korea.

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