Sugar production is growing in Russia

This year, the total production may reach up to 5.9 million tons. However, this number is still not enough.

Currently, the production of sugar from last year’s sugar beet harvest in Russia is being completed. In total, approximately 43.2 million tons of sugar beets were processed into sugar.

Now only 2 out of 65 sugar factories are working in the country, so we can say that in general the last season is closed.

As noted in Soyuzrossahar, the last season was marked by an increase in sugar production compared to the year before. The volume of sugar production increased by 450 thousand tons, which is an increase of 8% in annual terms.

What are the forecasts for the new season?


According to the Institute for Agricultural Market Studies, up to 6.35 million tons of sugar can be produced in the new season.

This is all the more relevant as Russia’s own sugar consumption is growing and currently stands at about 6.2 million tons per year.

Therefore, although the level of 5.9 million is not bad, given the growth, it still does not fully cover Russia’s needs for this product, not to mention the possibility of export.

Why are sugar prices rising?


A week ago, wholesale prices for sugar in Russia fluctuated between 50-51 thousand rubles per ton. This week — 52-53 thousand. There are several reasons for growth at once, one of them is the very trend towards increased consumption.


— Decrease in the projected level of production.

— High world prices for sugar, which inevitably drag the prices inside the country.

— The uncertainty of the ruble exchange rate, which makes it difficult for manufacturers to calculate profitability.

— Complicating and increasing the cost of delivering means of production from Western countries due to sanctions.

— Problems with the export of beet pulp, which previously actively went to Europe and brought in good revenue, but now has become a big question due to the same sanctions.

Another possible test for the industry is that the Russian government wants to ban the import of seeds of many crops, including sugar beets, from unfriendly countries. However, such rules are unlikely to come into effect before 2024.

Nevertheless, despite all the difficulties that the industry is currently facing, sugar producers are still looking for and finding ways to solve existing problems.

In addition, the Ministry of Agriculture plans to slightly increase the area under sugar beet this year: from 1.027 million hectares to 1.042 million hectares.

This allows us to expect that the new year’s harvest will be at least as good as the previous one.