Inside: Arable Pro

Russia is the newcomer on the sugar market

29 August 2017 - Niels van der Boom - 1 reaction

During the 2016-2017 financial year, the Russian sugar industry was able to export a significant volume of sugar for the first time. Market research agency IKAR calculates this. In addition to the sugar itself, more molasses and beet pulp has also been sold to other countries.

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From August 2016 to July 2017, the Russian sugar industry exported 350.000 tons of sugar. This concerns 5% of the total sugar production in the country. In previous years, only a negligible amount of sugar was exported to other countries. This is what the Russian research institute for agricultural markets IKAR writes.

350

thousand

tons of sugar Russia exported in 2016-2017

Also more molasses and pulp
Molasses exports increased by 42% in the same period, to 590.000 tons. 32% more beet pulp was also exported. This concerns a volume of 1,2 million tons. These products were also widely exported in previous years. About 90% of all molasses produced is exported and 33% of all pulp is in granulated form.

Harvest has started
The sugar beet harvest has now started in Russia. As of August 24, 58.800 hectares had been harvested, according to the Ministry of Agriculture. Good for 5% of the total area. This year it amounts to 1,198 million hectares. The harvest is slightly ahead of that of 2016.

Largest producer worldwide
A large harvest in 2016 ensured that Russia now occupies the position of the largest sugar beet producer in the world. Last year the beet harvest amounted to 50 million tons, good for 6 million tons of sugar. When Agriculture Minister Alexander Tkachev announced the news, he predicted sugar exports of 200.000 tons. That expectation has been far exceeded. The large harvest ensured that Russia produced more sugar for the first time than it uses annually.

Kazakhstan and Tajikistan are the largest customers

Tough Competition
Kazakhstan and Tajikistan are the largest buyers of Russian sugar. These countries are followed by Azerbaijan, Afghanistan and Turkmenistan.

Due to stiff competition on the world market, especially from the European Union, Belarus and Brazil, Russia does not expect to increase its export volume beyond 600.000 tons. Sugar yields in the country have quadrupled in 20 years, to an average of 5,3 tons of sugar per hectare. A sugar yield of 3 to 5 tons per hectare is expected for the next 7 to 8 years.

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