OREANDA-NEWS. October 12, 2009. In September 2009 sugar output rose by 60%, y/y or 115kt to 307kt. At the same time sugar producers harvested 3.4mnt of sugar beets (up 14%, y/y). Average sugar beet yield was 310 c/ha (down 12%, y/y).

We see the news to be neutral for such sugar producers as Astarta < AST PW BUY > and Ukrros < UROS UZ >, since it is not expected to decrease the price on the domestic sugar market. We explain the increase in the sugar output by a quite high sugar price on the market and the desire of the sugar producers to increase their sales. At the same time related to lower sugar beet acreage planted in 2009 (down 14%, y/y) and decreased sugar beet yield, we still expect sugar deficit of around 0.5mnt (25% of consumption) in 2009.