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Ukraine and Mercosur. Beet sugar under the wall. These data does notleaveillusions.

Ukraina i Mercosur. Burak cukrowy pod ścianą. Te dane nie pozostawiają złudzeń
  • Ukrainian flows of sugar have been directed to the EU since the opening market EU in 2022 year. However Ukraine trade should be directed to its previous traditional markets, such as Turkey, Middle East, Africa North and Asia Central, which have been lost to Russian sugar exports.
  • In years 1990-2021 the EU sugar sector reduced emissions CO2 in its factories by 59 percent. The industry is committed to achieve climate neutrality by 2050 year, in the interim expect 30 proc. by 2030 year. The Ukrainian sugar sector must be compliant with the same decarbonization goals.
  • 95 proc. Ukrainian production of sugar beets comes from agroholdings of a area of at least 10 000 ha conducting export activities. Same company Astarta operates on a area of 220 000 ha and in 2022 year. produced 1.8 million tons of sugar beets which stands 21 percent of domestic production!
  • Nearly 30 substances active agents for protection of plants approved for application on sugar beets in Ukraine are not at all allowed in the EU.

The last two years have been very good for cultivation of sugar beet. The plant was going on this production to plus, but the good pass is ending. The vision for the future is not optimistic and this very reason? Competition from the Ukraine, and also and in the future also probably with Mercosur countries, but in this case of sugar from sugarcane. Let’s

stop on Ukraine, however. Why does Poland, but also and European producers of beet have fears? They are justified, which is shown

by the following numbers.

What is the sugar content in this year's roots of beet

sugar? Distribution very large

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What is the content of sugar in this year’s roots of beet sugar? Distribution very large

Revision of DCFTA EU-Ukraine

– After a huge growth of Ukrainian sugar exports to EU in the years 2022-2024, in the result of Russian invasion and increased access to the EU.market EU through Autonomous Trade Measures (ATM) granted to Ukraine, it is necessary now to find a medium-term solution, which will be in force until Ukraine joins the EU. Solution this must consider the interests of both the EU, and the Ukrainian agricultural and crop sector. Revision of the Agreement on Deep and Comprehensive Free Trade Zone (DCFTA) should maintain a reasonable limit, which has already been agreed, to prevent further harm to the sensitive sector of sugar EU, and at the same time provide Ukraine with the opportunity to regain export channels in the long-term perspective – appeals the International Confederation of European Beet (CIBE).

They stress that the impact of import sugar from Ukraine on the EU market has been significant, both under supply, as and prices.

– Maintaining the current system TRQ remains justified. In the sugar market in EU there are serious distortions (where consumption is at the best time in stagnation), especially in member states EU bordering with Ukraine, which has a strong impact on both planters, as and processors – reports the organization of planters of beet sugar.

As adds, in comparison with the world market, short-term and spot sugar prices in the EU, which have significantly declined (-39 perc. since January 2024 year.), show increasing variability since autumn 2023 year. The difference in competitiveness resulting from structure and production rules is an existential threat to planters from the EU. In the event of further opening of our market to the Ukrainian sector of sugar, investments required in our sector, in particular to respect the transformation ecological, immediately will follow from our beet fields, sugar plants and rural areas, which means that more sugar plants will be closed in the EU.

– Ukrainian flows of sugar have been directed to EU since the opening

market EU in 2022 year. However Ukraine trade should be directed to its previous traditional markets, such as Turkey, Middle East, Africa North

and Asia Central, which have been lost to Russian sugar exports. Before Ukraine finally becomes a member state of the EU, it

should first recover access to its previous markets. Ukrainian producers must diversify their exports, revert old trade routes and reduce their dependence on the market EU – reminds KZPBC.

How much will limits in framework ATM on corn, poultry, eggs, corn, oats, honey and cash?

Read more

How much will limits increase in framework ATM on corn, poultry, eggs, corn, vegetables, honey and cash?

Planters want equal opportunities in production

that they want most. Equal competition on the same principles.

– Ukraine must adjust to the legislative EU. However differences in the standard of sugar production have deepened since the agreement on association in 2014 . with all new ambitious framework EU related to environmental transformation. Challenges, such as identifiability of agricultural products, higher sanitary and phytosanitary standards, and also adapted to decarbonization objectives, must be met – the planners believe.

This is not the end.

– Today we have to deal with trade, which passes all rules. There are those rules, which must be settled and observed…. first and foremost the rules of origin. Import of sugar should be reserved only for exporters with export certificates, transparency and identifiability. Frameworks binding contractual arrangements between producers and processors, similar to those in the EU, do not exist in Ukraine. The work of official diagnostic laboratories and inspections of imports must be adapted to the legislative EU. This is not only an issue of transposition to the legal EU, but also its enforcement. It is necessary to increase the number of phytosanitary inspectors and their administrative capabilities – reports CIBE.

It is their opinion, the regulatory framework for protection of plants and GMOs must be solidified.

– Integrated protection against pests is widely used by planters of sugar beet in the EU for decades (crop rotation, selection of varieties, cultivation seeds and monitoring crops, requirements for reporting on application of measures to protect plants etc.) These rules should also be implemented in a harmonized way across Ukraine. Managers of farmsAgricultural and farmers need training on requirements and standards for application of permitted measures to protect plants. An analysis of list pesticides and agrochemicals approved for application in Ukraine identifies almost 30 active substances approved for application in crop beets in Ukraine, but not to apply in the EU. In the years 1990-2021 the EU sugar sector reduced emissions CO2 in its factories by 59 percent. The industry is committed to achieve climate neutrality by 2050 year, in the interim expect 30 proc. by 2030 year. The Ukrainian sugar sector must adhere to the same decarbonization goals – CIBE appeals.

Ukrainian agroholdings and European farms

The sugar industry is also about differences on what looks agriculture in Ukraine, a how in Europe. In points CIBE gave the most important differences, which are not without impact on the branch.

As repeatedly, Ukrainian agriculture includes numerous large and integrated entities, called agroholdings, with extensive fields and mechanized agroholding practices, and also low cost production:

  • Ukrainian segment of sugar is integrated vertically and highly concentrated, a processor of sugar beets and sugar companies in Ukraine are owners or leasers of land for cultivation of sugar beets. Nearly all production of sugar beets comes from agroholdings.
  • 95 proc. Ukrainian production of sugar beets comes from agroholdings of a area of at least 10 000 ha conducting export activities. Same company Astarta operates on a area of 220 000 ha and in 2022 year. produced 1.8 million tons of sugar beets which stands 21 percent of domestic production!
  • 7 of 10 large agroholdings of over 200 000 ha do not have even seats in Ukraine.
  • In the case of exports to the EU the Ukrainian supplies the safety of food, but does not meet the same very high standards, as are in the EU.
  • Nearly 30 substances of active agents for protection of plants approved for application on sugar beets in Ukraine are not at all allowed in EU.

CIBE reminds also, that the EU has a more diverse agricultural landscape, with a mix of medium farms and smaller farms family farms:

  • About 100 000.Independent planters from 16 European countries grow beets sugar and deliver them to sugar plants.
  • The average

    areal of beets per planter/farm is about 15 ha.

  • About half of sugar in UE is

    produced bycooperatives,whoseownersandsuppliersareplanters/membersofcooperatives.

  • Nearly100proc.areacultivationofbeetsinEUismanagedbyindependentfarmers.SugarcompaniesinEUdo notmanagethecultivationofsuppliedbeets.
  • ThesectorintheEUis subjecttosevereregulationandplacesahighemphasisonsustainabledevelopment,takinginitiativestoreducetheimpactontheenvironmentandpromotediversity.TheEUsugarindustryisknownforproducinghighqualitysugar,withstrictstandardsforqualitycontrolandsteadilyreducingitscarbon footprint.

Source:KZPBC,CIBE

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Rootsofbeetssubmittedtofreezing.Whethertheyaresuitableforprocessing?

 

 

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