News
09.02.2010
Sugar industry takes investment of USD 100-150 million
Investment of USD 100-150 million is required for the creation of a competitive sugar industry in Ukraine in the long-term perspective, the press service of the Agrarian Chamber of Ukraine reported.
"Back in 2005 the Chamber proposed that the government hold concentration in this area for attraction of two or three strategic investors like international company British Sugar. Unfortunately, this has not been done so far," ACU President Dmytro Berezovskyi noted.
In his words, unsystematic reduction of capacities has cut the number of sugar refineries from 150 to 60, and the main problems of the branch have not been settled. The Chamber says the country has no state policy to encourage intensive cultivation of sugar beet and effective sugar production. "Under-production of sugar in Ukraine and the world over has boosted its prices 2.5 times on the Ukrainian market. Beside that, ill-considered policy on cane sugar import also played a negative role," Berezovskyi explained.
The Agrarian Chamber of Ukraine predicts that confectionery and bakery products, as well as other goods made with the use of sugar, may get 25-70% more expensive in February-April 2010.
The output of sugar made of the 2009 harvest beet totals 1.267 million tons, with Ukraine's domestic sugar consumption of 2 million tons.
UKRINFORM
