Ukrainian Sugar Plants Reach Contract on Nearly Entire Sugar Beet Harvest

The Ukrainian Ministry of Agriculture said Friday that Ukrainian sugar producers have reached supply agreements for the processing of about 16.5 mln mt of sugar beets from the new harvest – or almost the entire forecasted harvest. Olha Pankiv: The number announced by the ministry implies production of 1.7-1.8 mln mt of sugar in 2007/08 season. We estimate that the projected 35% yoy decrease in sugar production, although less than initially expected, will bring sugar inventories down from 0.7 mln mt to 0.3 mln mt in 2007/08 season, and put upward pressure on sugar prices.