Press-release |
|
Moscow, February 26, 2009 - The VII-th International Regional Conference "CIS and Central Asia sugar market" successfully took place at the Radisson SAS Slavyanskaya Hotel. The conference was organized by Russian Union of Sugar Producers (Soyuzrossakhar) jointly with the Institute for Agricultural Market Studies (IKAR) and the Directorate of Moscow International Sugar Forum. Sponsors of the conference: LLC Syngent", LLC Anteks +, CJSC BEFL, LLC Olam International. The sponsor of cocktail party: LLC SKAT Group of Companies. The official media support was provided by the Sugar magazine, Reuters, and Interfax agencies. The conference was attended by 163 delegates from 12 countries, including Russian Federation, Ukraine, Belarus, Moldova, Kazakhstan, UK, Germany, France, the Netherlands, Belgium, Switzerland and the United Arab Emirates. Among the participants were representatives of ministries and official bodies, directors, chief engineers and technologists from CIS and Russia sugar refineries, the leaders and top managers of business companies, as well as representatives of sugar market infrastructure from around the world. Speakers, topics and main points · Kiril Kolonchin, Director of the Food, Processing and Products Quality Department of the Ministry of Agriculture of Russian Federation The Russian sugar industry requires $ 1.5-1.7 billion to eliminate the processing capacity deficit. Taking into account the modernization of existing refineries, this figure could double. The department's target program "Development of Russian sugar beet subcomplex in 2010-2012", which the Ministry of Agriculture of Russia began to develop, will contribute to attraction these funds. · Nikolai Yarchuk, Chairman of the Board NASU "Ukrsakhar" (Ukraine) Sugar market of the Ukraine and WTO: Realities and Prospects There were marked the most serious problems of the sugar industry of the Ukraine, including the following: supply increase from Belarus, the WTO 263.9-tmt quota on raw sugar, lowering of import duties on sugar from 300 EUR / mt up to 50%, unprofitableness of the industry and accordingly, continued downsizing of sown area under sugar beet. · Michael Krishtapovich, Chairman, OJSC "Gorodeysk sugar refinery" (Belarus) Sugar Market of Belarus Republic Activity of four Belarusian refineries is aimed at realization Sugar Industry Development Programme in 2005-2010. Raising the level of sugar beet by the progressive technologies of cultivation and growth of sugar production in 2008. Reduction of sown areas and reducing the processing of raw sugar in 2008. Compliance with the agreement between the Russian Union of Sugar Producers and the Belarusian State Concern of Food Industry "Belgospischeprom" concerning the amount and conditions of sugar supplies in 2007-2008 and subsequent years. · Alexander Koss, Chairman of Council of Moldavian Union of Sugar Producers Status of Moldavian Sugar Market Successful experience of Moldova on the extension of the special customs duties "safe-guard" and other measures of sugar market protection. Sugar beet yields and sugar production increase from 2008 Outlet increase for Moldavian sugar in Russia and other CIS countries, and the growth of EU quota. The crisis seriously worsened the problems that may lead to a sugar beet crop reduction. · Andrey Kushnirenko, Head of Economic Department of Executive Committee of CIS countries Sugar Markets of CIS Countries: Is Coordination Achievable? The formation of common CIS sugar market is put off for several years and it will be possible after 2012, as the idea of its immediate creating is out of date now. The project of creating a common sugar market in Russia was discussed in 2007-2008 at the initiative of the Ukraine, and then the discussion stopped, because in May 2008 the Ukraine joined the World Trade Organization (WTO). Total sugar consumption in CIS countries is estimated at 11 mmt per year, about 5 mmt of them goes to beet sugar, and 6 mmt - sugar, produced from import raw sugar. So, the CIS countries (Russia, the Ukraine and Belarus) have to decide whether they will create a common sugar market, based on support for their sugar beet complexes, take protective measures against imports, or they will form the market, based on import sugar. The years 2009 and 2012 will become the starting point, which will allow to indicate what the course of sugar market development in the CIS will be. · Andrey Bodin, Chairman of the Board of NCU "Soyuzrossakhar" Sugar Market of Russia in Terms of Financial Crisis Next season sugar production could be reduced by 500 tmt due to the crisis. According to optimistic estimates, the production of beet sugar in 2009/2010 season could total 3.3 mmt. But almost every day new information concerning reduction comes. 10 of 79 Russian sugar producers and processors could stop their activities due to financing difficulties. Share of sugar refineries, which operate their own raw materials base, is constantly increasing. Sugar in the country is available now, it stocks will be enough till the end of May. The sharp increase of sugar wholesale prices at the beginning of January 2009 (according to some sources- 25%) can be accounted for the low base effect last year and dollar exchange rate. Partially Russia covers it sugar requirements by import of raw sugar, that's why the market price depends on the exchange rate. · Alexey Krivoshapko, CEO of "Prosperity Capital" Companies financing under modern conditions Russian potential of food consumption growth, including packaged products. World crisis makes serious amendments to the reduction of all economic indicators. Producers' financing problems with working capital and the inevitable bankruptcy give strong players a chance. Short-term oil and agricultural products price forecasts are still unreasonable, but with the increase of money supply in the USA the commodity prices will start rising again. · Alexander Davis, Senior trader of "Cargill International" (Switzerland) The situation on the world sugar market - implications for the CIS Countries The reduction of world production mainly due to India and the EU was below the consumption level in 2008/09. Recovery of the freight market in December and February after the collapse in 2008 Russia will sharply reduce the import of raw sugar due to the credit crisis, growth of self-reliance and stocks reduction. Increase of tolling business is expected in the CIS, as well as high volatility of the CIS markets and consumption reduction in Russia and the Ukraine. · Sergey Danov, Head of the Department of Development of Futures and Options Market, "RTS - Stock Exchange". Experience and Problems of Sugar Futures Market of the Russian Federation RTS - the largest forward market ground of the Eastern Europe. Stages of development, advantages and plans for the sugar contract development on the RTS. You don't have to work at the sugar market every day, but the gun should be charged, and wait in the wings. · Vitaliy Rosset, General director of LLC "SKAT-Forward" Development of the Sugar Transportation Market in CIS Countries in the Current Conditions The importance of timely planning, execution of documents, return, washing, drying of grain vans. The closure of the two-year conflict between administration and working staff at the Tuapse port. · Evgeniy Ivanov, Chief Expert of Sugar Market, Institute for Agricultural Market Studies (IKAR) CIS: Main Trends of Sugar Logistics Market in 2003-2009 The CIS countries remain the world's largest recipients of raw sugar, in spite of Russian and Belarusian course towards speedy development of domestic sugar beet complex. Even in these conditions the tolling business potential in the Krasnodar region is not developed satisfactory. Existing logistics versions of the raw sugar import to / via Russia are not satisfactory. There is a high potential demand for the development of existing and creation of new major raw sugar import terminal in the south of Russia aimed at ensuring the shortest transport way and the integrated customs and freight forwarding services. · Vladimir Novoselov, Managing Director of CJSC "BEFL" Trends of Russian Agricultural Lands Development in the Changed Financial Conditions Agricultural land - the main sugar producers' resource. The Organizers would like to thank again sponsors, mass media and all the participants for their beneficial input to the overall success of the Conference. |
