Required Report - public distribution

**Date:** 4/6/2005

**GAIN Report Number:** UP5007

UP5007

**Ukraine**

**Sugar**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)W. Garth Thorburn II, Agricultural Attaché

U.S. Embassy

**Prepared by:**

Dmitri Prikhodko, Agricultural Specialist

**Report Highlights:**

After an insignificant increase in sugar beet production in MY 2004/2005
due to favorable weather, domestic sugar production is forecasted to
continue its downward trend for MY 2005/2006. Lower production will
result in increased sugar imports when compared with revised estimates
of the current marketing year. Sugar exports, however, are forecasted to
decrease as a result of tighter import and processing control procedures
aimed at protecting the domestic market.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Kiev \[UP1\]

\[UP\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Sugar Beet Production 3](#sugar-beet-production)

[Areas Planted and Rate of Return on Investment in Grain, Sugar Beet and
Sunflowerseed Production in Ukraine in 1990-2004
3](#areas-planted-and-rate-of-return-on-investment-in-grain-sugar-beet-and-sunflower-seed-production-in-ukraine-from-1990-2004)

[Sugar Beets PSD Table 3](#sugar-beets-psd-table)

[Sugar Production 4](#sugar-production)

[Centrifugal Sugar PSD Table 4](#centrifugal-sugar-psd-table)

[Consumption 5](#consumption)

[Other Disappearance 5](#other-disappearance)

[Imports 5](#imports)

[Exports 5](#exports)

[Stocks 6](#stocks)

[Trade Policy 6](#trade-policy)

[Suggested Import Tariff Reductions and Possible Impact.
6](#suggested-import-tariff-reductions-and-possible-impact.)

[Statistical Tables 7](#statistical-tables)

[Households consumption of sugar and products containing sugar in
Ukraine in 2002 and 2003
7](#household-consumption-of-sugar-and-products-containing-sugar-in-ukraine-in-2002-and-2003-kg-per-100-households)

[Imports of Raw Cane Sugar Into Ukraine
7](#imports-of-raw-cane-sugar-into-ukraine-1000-mt)

[Monthly Raw Cane Sugar Imports into Ukraine
7](#monthly-raw-cane-sugar-imports-into-ukraine-1000-mt)

[Imports of refined sugar into Ukraine
8](#imports-of-refined-sugar-into-ukraine-1000-mt)

[Exports of refined Sugar From Ukraine
8](#exports-of-refined-sugar-from-ukraine-1000-mt)

[Monthly Sugar Exports from Ukraine
8](#monthly-sugar-exports-from-ukraine)

[Exports of Other Types of Sugar from Ukraine
9](#exports-of-other-types-of-sugar-from-ukraine-1000-mt)

[Centrifugal Sugar Price Table 9](#centrifugal-sugar-price-table)

# Executive Summary

Ukrainian farmers, who respond well to crop profitability in making
planting decisions, will likely continue to reduce the area planted with
sugar beets in 2005. Lower forecasted sugar beet production in MY
2005/2006 when compared with the estimate for the current marketing year
will result in reduced beet sugar output. Government of Ukraine's (GOU)
ineffective price fixing policies designed to increase domestic sugar
beet production will likely result in imports of 0.5 million tons of raw
cane sugar, a slight increase from the new MY 2004/2005 import estimate.
Tight control procedures, the ban on tolling imports and processing will
prevent trade in raw cane sugar from reaching the record level achieved
in MY 2002/2003 and will be reflected in diminishing exports of refined
sugar to Former Soviet Union (FSU) countries in MY 2005/2006.

# Sugar Beet Production

Sugar beet production in 2005 is forecast to decrease from the revised
2004 level due to lower than expected area and yields. Despite GOU
intentions to increase the minimum purchase price for sugar beets from
UAH 165 per ton (\$31/MT) in MY 2004/2005 to UAH 170 (\$32/MT)in MY
2005/2006 and the desire to plant 800,000 hectares with sugar beets this
year, farmers will likely reduce crop acreage when compared with 2004.
Sugar beet profitability remains well below that of sunflower seed and
grains (see the table below).

## Areas Planted and Rate of Return on Investment in Grain, Sugar Beet and Sunflower Seed Production in Ukraine from 1990-2004

  ------------------------- ---------- ---------- ---------- ---------- ---------- ------------ ----------------
  ** **                     **1990**   **1995**   **2000**   **2001**   **2002**   **2003\***   ***2004\*\****

  Area planted with grains  14,583     14,152     13,646     15,586     15,448     12,495       *15,517*
  and pulses, 1,000                                                                             
  hectares                                                                                      

  **Rate of return for      **275%**   **86%**    **65%**    **43%**    **19%**    **46%**      ***23%***
  Grains, %**                                                                                   

  Area planted with         1,636      2,020      2,943      2,502      2,834      4,001        *3,459*
  sunflowerseed, 1,000                                                                          
  hectares                                                                                      

  **Rate of return for      **237%**   **171%**   **52%**    **69%**    **78%**    **64%**      ***46%***
  Sunseed, %**                                                                                  

  Area planted with sugar   1,607      1,475      856        970        897        773          *754*
  beets, 1,000 hectares                                                                         

  **Rate of return for      **30%**    **31%**    **6%**     **2%**     **-9%**    **6%**       ***-1%***
  Sugar beets, %**                                                                              
  ------------------------- ---------- ---------- ---------- ---------- ---------- ------------ ----------------

*Data source: State Statistics Committee of Ukraine.*

*\*final data, \*\*-preliminary estimate*

FAS Kiev also expects slightly lower sugar beet yields in 2005, compared
to 2004 due to expected normal weather conditions. Sugar beet yields in
2004 were the highest in ten years and were facilitated by favorable
weather, and to a lesser extent by improved seed quality and plant
protection.

## 

## Sugar Beets PSD Table

  -------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------
  **PSD Table**  **Ukraine**                                                           

  **Sugar                                                                             
  Beets**                                                                             

                 2004          Revised    2005       Estimate                         UOM

                 USDA Official Post       USDA       Post       USDA       Post        
                 \[Old\]       Estimate   Official   Estimate   Official   Estimate   
                               \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]    

  **Market Year                09/2003               09/2004               09/2005    MM/YYYY
  Begin**                                                                             

  Area Planted   0             773        0          754        0          740        (1000 HA)

  Area Harvested 0             665        0          700        0          680        (1000 HA)

  Production     0             13391      0          16500      0          15500      (1000 MT)

  TOTAL SUPPLY   0             13391      0          16500      0          15500      (1000 MT)

  Utilization    0             13391      0          16500      0          15500      (1000 MT)
  for Sugar                                                                           

  Utilization    0             0          0          0          0          0          (1000 MT)
  for Alcohol                                                                         

  TOTAL          0             13391      0          16500      0          15500      (1000 MT)
  UTILIZATION                                                                         
  -------------- ------------- ---------- ---------- ---------- ---------- ---------- ---------

**MY 2004/2005**. Losses in the area planted due to unfavorable weather
and other economic reasons (low yields, fuel and machinery shortages,
etc.) are typical in Ukraine and range between 15-20% per year. In 2004,
farmers abandoned only 7% of the area planted as unusually warm weather
allowed sugar beet harvesting to continue until the end of November --
two weeks beyond the average harvesting time.

For more information on sugar beet production in 2004, please refer to
November 2004 Sugar Update (GAIN Report Number UP4019 dated:
10/27/2004).

# Sugar Production

The forecast for **MY 2005/2006** beet sugar production reflects lower
than expected sugar beet production compared with the current marketing
year. Once a prosperous industry, Ukraine's sugar processing plants have
rapidly lost their ability to attract investment. Approximately 10
processing plants out of 140 that exist in Ukraine changed owners last
marketing year. It is anticipated that the number of sugar beet
processing plants will continue to shrink and will fall below 120 in MY
2005/2006 as profitability in beet sugar production continues to be
close to negative. A preliminary assessment by the National Association
of Sugar Producers of Ukraine indicated that the rate of return for beet
sugar production during the 2004/2005 processing season was minus 4%.
Ukraine's sugar beet processing industry will likely continue to be
constrained by conflicting interests of sugar beet and raw cane sugar
refineries.

**MY 2004/2005.** FAS Kiev updated the previous sugar production
estimate for MY 2004/2005 to reflect higher sugar beet production and
processing. According to the Ukrainian Sugar Producers Association, the
processing season was nearly complete by mid December 2004. 120
factories processed beets in MY 2004/2005, compared with 121 in MY
2003/2004 and 126 in MY 2002/2003. Approximately 20 factories were idle
in MY 2004/2005.

For more information on sugar beet production in 2004, please refer to
the November 2004 Sugar Update (GAIN Report Number UP4019 dated
10/27/2004).

## Centrifugal Sugar PSD Table

+-------------------+-------+------+------+------+-----+------+-------+
| **PSD Table**     | *     |      |      |      |     |      |       |
|                   | *Ukra |      |      |      |     |      |       |
|                   | ine** |      |      |      |     |      |       |
+-------------------+-------+------+------+------+-----+------+-------+
| ** **             | **S   |      |      |      |     |      |       |
|                   | ugar, |      |      |      |     |      |       |
|                   | Cen   |      |      |      |     |      |       |
|                   | trifu |      |      |      |     |      |       |
|                   | gal** |      |      |      |     |      |       |
+-------------------+-------+------+------+------+-----+------+-------+
|                   | 2004  | Rev  | 2005 | Esti | 2   | Fore | UOM   |
|                   |       | ised |      | mate | 006 | cast |       |
+-------------------+-------+------+------+------+-----+------+-------+
|                   | USDA  | Post | USDA | Post | U   | Post |       |
|                   | Off   | Esti | Offi | Esti | SDA | Esti |       |
|                   | icial | mate | cial | mate | Of  | mate |       |
|                   | \[    | \[N  | \[O  | \[N  | fic | \[N  |       |
|                   | Old\] | ew\] | ld\] | ew\] | ial | ew\] |       |
|                   |       |      |      |      | \   |      |       |
|                   |       |      |      |      | [Ol |      |       |
|                   |       |      |      |      | d\] |      |       |
+-------------------+-------+------+------+------+-----+------+-------+
| ######            |       | 10/  |      | 10/  |     | 10/  | MM    |
| Market Year Begin |       | 2003 |      | 2004 |     | 2005 | /YYYY |
+-------------------+-------+------+------+------+-----+------+-------+
| Beginning Stocks  | 496   | 496  | 426  | 181  | 426 | 181  | (1000 |
|                   |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Beet Sugar        | 1580  | 1580 | 1400 | 1900 | 0   | 1750 | (1000 |
| Production        |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Cane Sugar        | 0     | 0    | 0    | 0    | 0   | 0    | (1000 |
| Production        |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| TOTAL Sugar       | 1580  | 1580 | 1400 | 1900 | 0   | 1750 | (1000 |
| Production        |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Raw Imports       | 900   | 495  | 1300 | 350  | 0   | 500  | (1000 |
|                   |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Refined Imp.(Raw  | 100   | 70   | 100  | 100  | 0   | 100  | (1000 |
| Val)              |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| TOTAL Imports     | 1000  | 565  | 1400 | 450  | 0   | 600  | (1000 |
|                   |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| TOTAL SUPPLY      | 3076  | 2641 | 3226 | 2531 | 426 | 2531 | (1000 |
|                   |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Raw Exports       | 0     | 0    | 0    | 0    | 0   | 0    | (1000 |
|                   |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Refined Exp.(Raw  | 400   | 310  | 500  | 200  | 0   | 150  | (1000 |
| Val)              |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| TOTAL EXPORTS     | 400   | 310  | 500  | 200  | 0   | 150  | (1000 |
|                   |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Human Dom.        | 2200  | 2100 | 2300 | 2150 | 0   | 2200 | (1000 |
| Consumption       |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Other             | 50    | 50   | 0    | 0    | 0   | 0    | (1000 |
| Disappearance     |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Total             | 2250  | 2150 | 2300 | 2150 | 0   | 2200 | (1000 |
| Disappearance     |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| Ending Stocks     | 426   | 181  | 426  | 181  | 0   | 181  | (1000 |
|                   |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+
| TOTAL             | 3076  | 2641 | 3226 | 2531 | 0   | 2531 | (1000 |
| DISTRIBUTION      |       |      |      |      |     |      | MT)   |
+-------------------+-------+------+------+------+-----+------+-------+

# Consumption

Sugar consumption will continue to increase in **MY 2005/2006** due to
higher anticipated sugar utilization by the food processing and
confectionary industries. This increased use will offset lower than
expected direct human consumption. Per capita consumption of sugar,
however, will remain well below 50 kilograms, the record level achieved
in early 1990s.

FAS Kiev provided consumption information for sugar and products
containing sugar in the Statistical Tables Section. Ukrainian consumers
mostly consume refined sugar and often do home canning which is very
popular. Consumption of sugar substitutes has been negligible so far.
According to calculations by the State Statistics Committee of Ukraine,
per capita sugar consumption in CY 2003 was 36.4 kilograms.

# Other Disappearance 

Other disappearance category was zeroed for MY 2004/2005 and MY
2005/2006 due to low imports of raw cane sugar and consequent low
re-exports of products containing sugar (HS 1702) compared with MY
2003/2004. Existing free trade agreements (FTA) among FSU countries
generally exclude sugar, but allow for some trade in sugar-based
products. Sugar syrup accounted for most of the "other disappearance"
exports. However, the Russian Federation restricted syrup imports from
Ukraine in MY 2003/2004. Information on exports of products containing
sugar is provided in the Statistical Tables Section. Currently, trade in
products containing sugar is mostly limited to caramel and other
confectionary products.

# Imports 

Raw cane sugar imports will likely increase in **MY 2005/2006** from the
revised level of the current marketing year as forecasted beet sugar
production will not be sufficient to meet domestic demand. The GOU has
not yet announced a sugar tariff-rate-quota (TRQs) for MY 2004/2005.
Usually, TRQs are announced in May when it is clear how much sugar
Ukraine will need before the end of a marketing year. FAS Kiev believes
that the government will announce and then auction off a 250,000-300,000
ton TRQ to allow for imports prior to September 1, 2005 (MY 2004/2005).

The import estimate for **MY 2004/2005** was revised downwards to
reflect higher domestic production and reduced exports. Ukraine's sugar
importers largely depend on export markets in the FSU. Increased
competition with Russian and Kazakh raw cane sugar refineries in FSU
markets, restrictions on sugar imports, refining and re-exports have
significantly reduced export market opportunities. In order to prevent
smuggling in sugar, the previous government banned imports of sugar and
sugar syrup under tolling contracts for the purpose of further refining.
Information on sugar imports is provided in the Statistical Tables
Section.

# Exports

Exports of refined sugar are expected to continue to decline in **MY
2005/2006** assuming no new changes to existing import regulations.
Ukraine will continue to supply sugar to FSU countries within the
existing free-trade agreements. However, it is expected that competition
from Russia and Kazakhstan who also supply refined cane sugar to
Kyrgystan, Uzbekistan, Turkmenistan, Azerbaijan and other FSU countries
will increase.

Sugar exports in **MY 2004/2005** are currently assessed lower due to
reduced imports of raw cane sugar for the purposes of refining and
re-export.

## Stocks

Due to the insignificant increase in domestic consumption forecasted for
MY 2005/2006, ending stocks are not expected to change from the revised
MY 2003/2004 and 2004/2005 levels. FAS Kiev reduced the carry over
estimate for MY 2003/2004 to reflect low imports in August-September
2004 (see monthly trade matrix). There is still no information available
on sugar stored by refineries, farmers, traders and the Government in
Ukraine; therefore, the stock level was derived as a residual from more
reliable estimates of production, consumption and trade.

## 

# Trade Policy

**While preparing the import forecast for MY 2005/2006, FAS Kiev assumes
the GOU will introduce a TRQ rather than reduce overall sugar import
tariffs**. With an ambitions goal of joining the World Trade
Organization by the end of CY 2005, the new Ukrainian Government
unexpectedly proposed to legislators a substantial reduction in tariffs.
The tariffs were previously used to protect the domestic food market,
including the sugar market and products containing sugar. According to
the draft legislation that is pending review by the Ukrainian
Parliament, all import duties are to be reduced, or at least be replaced
with *ad valorem* tariffs. Currently, the import duty on all commodities
under HS 1701 code is set at 50%, but it should be not less than EUR 300
per ton. If approved as suggested, the new 50% *ad valorem* import duty
would not protect domestic beet sugar producers from import competition.
According to Post's calculations, imported sugar would have a
\$42-\$65/MT price advantage compared to domestically produced product
after import duty and VAT payments (see the table below).

## Suggested Import Tariff Reductions and Possible Impact.

  ------------ ----------------- --------------- ------------ ------------- ------------- ------------- ----------------- --------------- ------------
  **HS Code**  **Description**   **Current       **Average    **Ad valorem  **Suggested   **Estimated   **Ukrainian       **Estimated     **Price
                                 Preferential    CIF price in equiv. of MY  Import Tariff reduction as  minimum sugar     imported sugar  difference
                                 Import Tariff,  MY           2003/2004     (ad valorem   compared with prices, US\$      price inclusive between
                                 % and           2003/2004,   price,%\***   only), %**    the current   equiv/MT.\*\***   of the          custom
                                 Applicable      \$/MT**                                  tariff, %**                     suggested       cleared
                                 Limitations**                                                                            import tariff,  imported
                                                                                                                          \$/MT\*\*\***   sugar and
                                                                                                                                          current
                                                                                                                                          minimum
                                                                                                                                          prices**

  **170111**   **Cane Sugar**    50% ,but not    \$212        184%          50%           -73%          \$447             \$382           -\$65
                                 less than EUR                                                                                            
                                 300 per ton                                                                                              

  **170112**   **Beet Sugar**    50% ,but not    \$225        173%          50%           -71%          \$447             \$405           -\$42
                                 less than EUR                                                                                            
                                 300 per ton                                                                                              
  ------------ ----------------- --------------- ------------ ------------- ------------- ------------- ----------------- --------------- ------------

*\* Post estimate based on EUR1.00/US\$1.30 exchange rate*

*\*\* By regulations, no legal entity in Ukraine is allowed to sell
product domestically below that price (VAT inclusive)*

*\*\*\* Assuming MY 2003/2004 import prices, increased by 50% ad valorem
import duty and then by 20% VAT*

Considering the fact that no funds are available in the Ukrainian budget
for direct subsidies to beet sugar producers, a vocal agricultural lobby
in Parliament and the high degree of political sensitivity, it is
unlikely that current import tariffs for sugar will be changed.
Therefore, no consideration was made in the PSD table for the proposed
tariff reductions.

# Statistical Tables

## Household Consumption of Sugar and Products Containing Sugar in Ukraine in 2002 and 2003, kg per 100 households

+-----------------------+------+-------+-------+-------+------+------+
| ####### Products      | **20 |       | **2   |       | **Ch | **Ch |
|                       | 02** |       | 003** |       | ange | ange |
|                       |      |       |       |       | in   | in   |
|                       |      |       |       |       | q    | pr   |
|                       |      |       |       |       | uant | ice, |
|                       |      |       |       |       | ity, | %**  |
|                       |      |       |       |       | %**  |      |
|                       |      |       |       |       |      |      |
|                       |      |       |       |       |      |      |
+-----------------------+------+-------+-------+-------+------+------+
|                       | **Q  | **    | *     | **    |      |      |
|                       | uant | Price | *Quan | Price |      |      |
|                       | ity, | UAH   | tity, | UAH   |      |      |
|                       | kg** | /kg** | kg**  | /kg** |      |      |
+-----------------------+------+-------+-------+-------+------+------+
| Sugar                 | 8    | 2.49  | 8,404 | 2.78  | -5%  | 12%  |
|                       | ,857 |       |       |       |      |      |
+-----------------------+------+-------+-------+-------+------+------+
| Other types of sugar  | 6    | 7.18  | 5     | 10.09 | -20% | 41%  |
| and sugar substitutes |      |       |       |       |      |      |
+-----------------------+------+-------+-------+-------+------+------+
| Jam                   | 46   | 5.01  | 41    | 4.74  | -11% | -5%  |
+-----------------------+------+-------+-------+-------+------+------+
| Natural Honey         | 272  | 9.16  | 190   | 12.66 | -30% | 38%  |
+-----------------------+------+-------+-------+-------+------+------+
| Artificial Honey      | 8    | 4.28  | 5     | 4.34  | -46% | 1%   |
+-----------------------+------+-------+-------+-------+------+------+
| Chocolate             | na   | na    | 92    | 22.51 |      |      |
+-----------------------+------+-------+-------+-------+------+------+
| Caramel               | 626  | 6.57  | 592   | 6.88  | -5%  | 5%   |
+-----------------------+------+-------+-------+-------+------+------+
| Marmalade ХАЛВА       | 99   | 6.23  | 135   | 6.13  | 36%  | -2%  |
+-----------------------+------+-------+-------+-------+------+------+
| Other Sweets          | 24   | 12.43 | 34    | 11.19 | 39%  | -10% |
+-----------------------+------+-------+-------+-------+------+------+
| Chocolate candies     | na   | na    | 388   | 13.18 |      |      |
+-----------------------+------+-------+-------+-------+------+------+
| Ice cream             | 185  | 9.22  | 360   | 9.43  | 95%  | 2%   |
+-----------------------+------+-------+-------+-------+------+------+

*Data source: State Statistics Committee of Ukraine's Sample Survey of
Households' Incomes and Expenditures.*

*Note: there were 17,975,774 households in Ukraine in 2002*

## Imports of Raw Cane Sugar into Ukraine, 1,000 MT 

  -------------------- ------------ ------------ ------------ ------------
  **Suppliers**        **Oct 02-Sep **Oct 03-Sep **Oct 03-Jan **Oct 04-Jan
                       03**         04**         04**         05**

  Brazil               1,007        269          124          21

  Cuba                 72           45           0            0

  Guatemala            36           39           0            0

  United States        13           22           10           0

  Belarus              30           21           21           0

  El Salvador          10           20           0            0

  Peru                 6            14           14           0

  Antigua              3            10           10           0

  Colombia             60           2            2            0

  Others not Listed    154          53           52           0

  **Total**            **1,392**    **495**      **233**      **21**
  -------------------- ------------ ------------ ------------ ------------

*Data source: State Customs Service of Ukraine* *(HS 170111)*

## Monthly Raw Cane Sugar Imports into Ukraine, 1,000 MT

  ------------ ----------- ------------ ----------- -------------- ------------
  **Month**    **1,000     **Month**    **1,000     **Month**      **1,000 MT**
               MT**                     MT**                       

  **Oct-02**   48          **Oct-03**   50          **Oct-04**     11

  **Nov-02**   56          **Nov-03**   56          **Nov-04**     10

  **Dec-02**   66          **Dec-03**   75          **Dec-04**     0

  **Jan-03**   66          **Jan-04**   52          **Jan-05**     0

  **Feb-03**   70          **Feb-04**   49                          

  **Mar-03**   70          **Mar-04**   27                          

  **Apr-03**   61          **Apr-04**   42                          

  **May-03**   54          **May-04**   19                          

  **Jun-03**   112         **Jun-04**   0                           

  **Jul-03**   252         **Jul-04**   114                         

  **Aug-03**   438         **Aug-04**   6                           

  **Sep-03**   98          **Sep-04**   5                           

  **MY 02/03** **1,392**   **MY 03/04** **495**     **MY04/05 -to  **21**
                                                    date**         
  ------------ ----------- ------------ ----------- -------------- ------------

*Data source: State Customs Service of Ukraine*

## Imports of refined sugar into Ukraine, 1,000 MT

  -------------------- ------------ ------------ ------------ ------------
  **Suppliers**        **Oct 02-Sep **Oct 03-Sep **Oct 03-Jan **Oct 04-Jan
                       03**         04**         04**         05**

  Lithuania            4            15           0            18

  Poland               23           13           6            0

  Georgia              31           12           10           0

  Russia               7            9            0            0

  Kazakhstan           5            5            1            0

  Estonia              0            2            2            0

  United States        0            0            0            8

  Germany              0            0            0            0

  Netherlands          0            0            0            0

  United Kingdom       2            0            0            0

  Others Not Listed    3            0            0            0

  **Total**            **75**       **57**       **19**       **26**
  -------------------- ------------ ------------ ------------ ------------

*Data source: State Customs Service of Ukraine (HS 170199)*

## 

## Exports of refined Sugar From Ukraine, 1,000 MT

  ------------------------ ----------- ----------- ----------- -----------
                           **Oct       **Oct       **Oct       **Oct
                           02-Sep 03** 03-Sep 04** 03-Jan 04** 04-Jan 05**

  Moldova                  97          99          40          14

  Turkey                   35          54          54          0

  Azerbaijan               118         52          26          0

  Georgia                  52          40          24          1

  Armenia                  0           11          2           0

  Kazakhstan               22          9           5           0

  Slovakia                 0           9           0           0

  Afghanistan              7           3           2           0

  Russia                   0           3           1           0

  Estonia                  0           2           2           0

  Others Not Listed        2           5           1           3

  **Total**                **334**     **287**     **157**     **18**
  ------------------------ ----------- ----------- ----------- -----------

*Data source: State Customs Service of Ukraine (HS 170199)*

## Monthly Sugar Exports from Ukraine 

  ------------ --------- ------------ --------- ---------------- -------------
  **Month**    **1,000   **Month**    **1,000   **Month**        **1,000 MT**
               MT**                   MT**                       

  **Oct-02**   27        **Oct-03**   46        **Oct-04**       0

  **Nov-02**   24        **Nov-03**   33        **Nov-04**       11

  **Dec-02**   10        **Dec-03**   65        **Dec-04**       5

  **Jan-03**   10        **Jan-04**   12        **Jan-05**       2

  **Feb-03**   10        **Feb-04**   5                           

  **Mar-03**   17        **Mar-04**   39                          

  **Apr-03**   18        **Apr-04**   25                          

  **May-03**   42        **May-04**   19                          

  **Jun-03**   36        **Jun-04**   14                          

  **Jul-03**   68        **Jul-04**   12                          

  **Aug-03**   44        **Aug-04**   15                          

  **Sep-03**   29        **Sep-04**   1                           

  **MY 02/03** **334**   **MY 03/04** **287**   **MY04/05 -to    **18**
                                                date**           
  ------------ --------- ------------ --------- ---------------- -------------

*Data source: State Customs Service of Ukraine (HS 1701)*

## Exports of Other Types of Sugar from Ukraine, 1,000 MT

+-------------------+-----------+-----------+-----------+-----------+
| ##                | **Oct     | **Oct     | **Oct     | **Oct     |
| #### Destinations | 02-Sep    | 03-Sep    | 03-Jan    | 04-Jan    |
|                   | 03**      | 04**      | 04**      | 05**      |
+-------------------+-----------+-----------+-----------+-----------+
| Russia            | 338       | 54        | 43        | 6         |
+-------------------+-----------+-----------+-----------+-----------+
| Belarus           | 23        | 22        | 6         | 3         |
+-------------------+-----------+-----------+-----------+-----------+
| Kazakhstan        | 8         | 8         | 3         | 3         |
+-------------------+-----------+-----------+-----------+-----------+
| Uzbekistan        | 0         | 0         | 0         | 0         |
+-------------------+-----------+-----------+-----------+-----------+
| Azerbaijan        | 0         | 0         | 0         | 0         |
+-------------------+-----------+-----------+-----------+-----------+
| Lithuania         | 0         | 0         | 0         | 0         |
+-------------------+-----------+-----------+-----------+-----------+
| Moldova           | 1         | 0         | 0         | 0         |
+-------------------+-----------+-----------+-----------+-----------+
| **Total**         | **370**   | **85**    | **53**    | **12**    |
+-------------------+-----------+-----------+-----------+-----------+

*Data source: State Customs Service of Ukraine (HS 1702)*

## Centrifugal Sugar Price Table 

+---------------+--------------------+-------------+-------------------+
| **Prices in** | ###### US\$        | **per uom** | **1 MT**          |
+---------------+--------------------+-------------+-------------------+
| **Year**      | **2003**           | **2004**    | **% Change**      |
+---------------+--------------------+-------------+-------------------+
| Jan           | 425.66             | 414.55      | -3%               |
+---------------+--------------------+-------------+-------------------+
| Feb           | 449.9              | 413.7       | -8%               |
+---------------+--------------------+-------------+-------------------+
| Mar           | 498.64             | 430.64      | -14%              |
+---------------+--------------------+-------------+-------------------+
| Apr           | 511.83             | 444.76      | -13%              |
+---------------+--------------------+-------------+-------------------+
| May           | 506.28             | 482.63      | -5%               |
+---------------+--------------------+-------------+-------------------+
| Jun           | 600.06             | 462.31      | -23%              |
+---------------+--------------------+-------------+-------------------+
| Jul           | 538.28             | 464.64      | -14%              |
+---------------+--------------------+-------------+-------------------+
| Aug           | 388.26             | 458.4       | 18%               |
+---------------+--------------------+-------------+-------------------+
| Sep           | 390.12             | 457.78      | 17%               |
+---------------+--------------------+-------------+-------------------+
| Oct           | 408.86             | 442.85      | 8%                |
+---------------+--------------------+-------------+-------------------+
| Nov           | 409.79             | 433.46      | 6%                |
+---------------+--------------------+-------------+-------------------+
| Dec           | 401.39             | 448.6       | 12%               |
+---------------+--------------------+-------------+-------------------+

*EXW Offer Price*

*Data source: APK-Inform
([www.apk-inform.com](http://www.apk-inform.com/))*