Opening the discussion, the Committee Chairman Hryhoriy Kalyetnik emphasized, in particular, that today there is a range of issues in this area that should be considered not only in the context of current problems, but also in a perspective vision.
Participants took into consideration that at the beginning of 1991 sugar beet industry in Ukraine contained 192 sugar mills, 5 sugar refineries, 135 seed farms, 4 seed plants, and over 8,000 collective farms that grew sugar beets. The number of employees working in the sugar beet sector was more than 1.5 million people. Ukraine took the leading place in the world for areas under sugar beet (1.6 million hectares), and for production of sugar from sugar beets - over 5 million tons annually, making up 10% of world beet sugar production.
It was reported also that a significant decline in sugar production occurred during the 1990 – 1997, from 6.791 million tons to 2.034 million tons per year. In the 90s, the number of sugar refineries reduced to 86. In 2012, 64 sugar refineries functioned in Ukraine.
However, according to participants, "the situation on the sugar market resembles a swing. During scarce years high demand for sugar encourages farmers to increase sugar beet acreage and it leads to overproduction. As a result, prices fall and sugar beet producers reduce crop.
The attendees believe that such state of affairs is the result of absence of a clear government policy on the sugar market.
Apart from this, the government has reduces minimal sugar prices (VAT not included) for the current marketing year (September 2012 – August 2013) from UAH 4925,14 to UAH 4083,33 per ton.
Summing up the results of discussion, participants stressed that state policy in support of sugar industry should aim at reducing sugar import into Ukraine through reconsideration of WTO quota, strict control over the quality of sugar substitutes, establishment of equal competitive conditions between domestic and Custom’s Union sugar producers, etc.
Participants believe that some urgent measures are to be taken to refine situation in the sphere, inter alia:
improve provisions of the current Law "On State Regulation of Sugar Manufacture and Sale";
implementation of the Law "On State Support of Agriculture of Ukraine" re purchase of sugar beet harvest 2012 by the Agrarian Fund of Ukraine;
negotiationh with the Customs Union member state re inclusion of white sugar to the free trade regime, etc