Russian sugar producers have found the way to decrease its prime cost by 15%. They are going to change import stuff sugar-beet and they will cultivate it on their own.

All producers will acquire own farms, experts make sure.
Company "Prodimex" gave information that last few years sugar producing of beet was increasing by roughly 25% per annum. 1,6 mln tons of sugar was produced in 2002, 1,9 mln in 2003 and 2,25 mln tons in 2004. Now "Prodimex" sells 700-850 thousand tons of sugar yearly and about half of it is produced of imported raw and half of beet. "We are going to increase sugar producing of beet up to 800 thousand tons and decrease production of raw down to 200 thousand", - said "Prodimex" director general Igor Khudokormov.

The company has rented 14000 hectare ground area in Zemechenck district of Penza region for beet growing.
"We are going to increase our area from 160000 hectares up to 200000 hectares by renting about 65-70 thousand hectares for long lease, presumably in Central region", - said Khudokormov. Head of "Prodimex" calculates sugar production prime cost will decrease from $420 per ton down to $360 per ton. Selling value of Belarusian sugar is $480. Other interests have the same opinion. Director general of "Rusagro" - sugar company - said his company is going to increase the production of sugar-beet by 20% and "Rusagro" increased sowing up to 17900 hectares in 2005.

It was always profitable to produce sugar of beet than of raw, Alexei Knyazev considers. "But before 2000 sugar producers were not occupied with farming, no one had beet. But when government introduced import duties for raw importation producers had no choice." - Knyazev noted. Now duty is $340 per ton.
sections: Economics