Ukraine set to export some 300,000 tons of sugar to UAE
2011-10-24 17:29:36
Volodymyr-Volynsky Sugar Factory, a member of Techno Center company, can start supplying sugar to the United Arab Emirates (UAE), member of the Techno Center Supervisory Board Yuriy Parashchak said, UKRINFORM reported citing Kommersant-Ukraine.
"Representatives of the Arab ALP Plus General Trading Co. LLC, who visited the plant, liked the quality of our sugar. Following the meeting we signed a memorandum of understanding, now we agree on a price," he said.
Today, the matter concerns test batches of 50-100 tons. But the Arab company is interested in larger deliveries.
Petro Borysiuk, deputy chairman of Ukrsugar Association, whose representatives participated in the negotiations, said that it is about 300,000 tons (nearly 15% of annual production).
Until recently, the supply of Ukrainian sugar to foreign markets was unprofitable because of cheap sugar cane. But starting this June, the cost of raw sugar has risen by almost 50%, to USD 598/ton (UAH 4,800/ton, USD 1 - UAH 7.98). And the cost of Ukrainian beet sugar today is UAH 3,500-4,000/ton (USD 440-500).
If the global environment changes, Volodymyr-Volynsky Sugar Factory will be able to guarantee the delivery, as it has raw sugar processing facilities.