If the forecasts come true, Russia will produce more than 10% more sugar this year than last year. Will the country thus play a greater role in the global sugar trade?
According to the Institute for Agricultural Market Studies (IKAR), Russia's sugar yield this season (2021-2022) could reach 5,8 million tons. A significant increase compared to last year's 5,25 million tons. It must be noted that the yield in 2020 was significantly lower due to a disappointing beet yield. The south of Russia in particular had to deal with drought problems in the summer. The record production of 2019 – estimated at 7,2 million tons of sugar – was therefore far from achieved.
Area growth of 9%
Russia is by far the largest producer of sugar beets in the world in terms of area. Followed by the United States, France and Germany. The yield per hectare in Russia has increased considerably in recent years, but is still relatively low. IKAR reports to Agroinvesti that Russian growers have sown 9% more sugar beets this year. That would mean that the area would grow to over 1 million hectares. Last year the area shrank according to IKAR with 19% up to 927.000 hectares.
With the current sugar beet area, Russia is back at the level of six years ago. In recent years there has been a decline in area due to overproduction of sugar. The inventories built up with overproduction were large enough to close the gap between production and domestic consumption.
Russians want to export more
With sugar production expected to increase by more than 10%, Russia will undoubtedly work on its ambition to export more. Russia's sugar exports are now relatively small and limited to traditional markets accessible by rail and road. These are countries such as Armenia, Belarus, Georgia, Kyrgyzstan and Kazakhstan, Afghanistan, Mongolia and North Korea. Central Asia is seen by the Russians as a potential growth market.
Russia's sugar exports are still very limited, but that could change. The country has made significant progress in recent years in terms of productivity. The sugar industry has managed to increase sugar beet yields almost fivefold since 1997. IKAR expects this development to continue and that Russia will produce more sugar every year, provided that the growing season does not hinder sugar beet production.