The reasons may be an increase in the cost of sugar beet production against the background of a decrease in acreage.
This year, sugar beet was sown 8.5% more than a year earlier. The total area was 1 million hectares.
At the same time, there is a high risk that beet growers will reduce their acreage next season. This is seriously feared in Soyuzrossahar.
The main reason is the decline in the profitability of growing this crop. The cost price has increased by 19% this year. This is due to the following factors:
Increase in fertilizer prices. This is largely due to the sharp rise in the price of natural gas, because ammonia — the most important component of fertilizers — is produced from it.
Rising fuel and logistics prices.
Low sugar content of beets of this crop due to unfavorable weather (less sugar per ton of beets).
Moreover, all factors, except for the last one, affect not only beets, but any crops.
Sugar beet yields also increased this year: + 6.6%.
But this is three times less than the growth in the cost of cultivation, and it turns out that the cultivation of this crop for producers has definitely become less profitable.
Against the background of all this, many enterprises for which sugar is a raw material are beginning to worry about a new round of prices.
Currently, producers are forced to purchase sugar at more than 45 rubles — the maximum retail price that was fixed by an agreement (already canceled) between producers and retail chains last year.
The Ministry of Agriculture, however, does not share such fears yet.
Analysts suggest that Russia this year will work out its own rate for domestic consumption (5.8 million tons of sugar).
The only thing that is in question is export. A year ago, the Russian Federation exported about 1.2 million tons of sugar, which is an increase of 76% compared to 2019. In the current season, exports may be less.
Will growers plant fewer beets in 2022?
This is still a question. General Director of Rusagro Group Maxim Basov said that the decision will be made next spring depending on the price level.
If they turn out to be low, then either the area planted or the fertilizer application rates will inevitably decrease.
In both cases, the yield of beets will decrease, which means that there will be less sugar produced from it, and the price will rise further, experts predict.
So it turns out that rising sugar prices today is the only thing that can save us from rising sugar prices next year.
