Ukrros Reduces Sugar Output
OREANDA-NEWS. December 28, 2009. Sugar Union Ukrros reduced sugar output by 35%, y/y to 130kt in 2009, which is by around 10% lower than the planned amount. The Company run 3 sugar plants out of 7, which manufactured 961kt of sugar beets (down 4% from the plan). At the same time Ukrros imported 16kt of raw cane sugar, which accounts for 54% of the Company quota in 2009.
Millennium Capital explains the decrease in Ukrros sugar output by the change of the Company output targets in 2009 and the shortage of its working capital in 2009. Namely, the Company decided to increase its crop output in 2009, which is less resource intensive, while reducing the area under sugar beets. Millennium Capital considers that with such a decision the Company decreased its potential profit, resulting from the constant sugar price growth.
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