By results of the survey “Agri-food spectrum of Ukraine-2014" conducted by the agency AgriSurvey, the occupied Crimea does not in generally provide its own needs in sugar. The transition from Ukrainian to Russian sugar will cost extra over 160 mln UAH per year.

In 2013, Ukraine produced 1.26 mln t of sugar, which is 41.2% lower the indicator of 2012. Agency AgriSurvey states that top 15 largest enterprises have produced  890 ths t of sugar or 70.7% of the total production. Thus, the concentration of the sugar industry continues to grow, because in 2012, the top 15 enterprises produced only 41.7% of total sugar production.

"The consolidation of sugar production is primarily caused by the market conditions. As a result of overproduction in 2012, nearly half of enterprises left the market –  primarily those ones that were not a part of agroholdings and did not have their own production of sugar beet. Availability of own raw materials allows to work more efficiently at the time when excessive amounts of sugar production lead to the low realization price", - says Taras Gagalyuk, Director of the Agency AgriSurvey.

The same time, according to Taras Gagalyuk, the occupied Crimea may face the serious problems in sugar provision. Thus, while the overall consumption of sugar in the Crimea is at the level of 85 ths t per year, the region currently has no own capacity for sugar production. If the Crimea will take decision to replace Ukrainian sugar by Russian one (despite the fact that Russia is a net-importer of sugar), it primarily will have negative impact on consumers. In result of higher prices for sugar on the retail market in Russia, they can lose over 160 mln UAH annually.

 More detailed information about the survey "Agri-food spectrum of Ukraine-2014" can be found at the link.

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The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.