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Dakor to produce 110 ths mt of sugar in 2008

Dakor to produce 110 ths mt of sugar in 2008

7 October 2008

According to Dakor (DAKOR: BUY) CEO Miroslav Polio, the company targets keeping 2008 sugar production at its 2007 level of 110 ths mt. Polio said that Dakor plans to reach 100% self-sufficiency in sugar beets in the 2008/09 season. The company also plans to launch grain silos in Rivne and Lviv regions, with respective storage capacities of 50 and 35 ths mt by 2011. Olha Pankiv: The management’s decision not to use third-party beets in production implies 10-20% lower sugar sales in 2009 than we initially expected, to be compensated by higher profitability margins due to the lower cost of internally produced beets. Silo construction is unexpected news, and, in our view, will trigger a raise in the margins of the company’s agricultural business.

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