Ukrtsukor: Land reform to bring most sugar mills to a halt
2012-01-25 17:35:14
The National Association of Sugar Producers has predicted that if restrictions on the area of land that can be leased are retained during the land reform, more than 40 sugar mills will stop operating in Ukraine, the chairman of the association, Mykola Yarchuk, said at a press conference on Wednesday.
"If the situation develops like this, then, perhaps, two thirds of sugar mills, or more than 40 mills, will be closed," he said.
The expected restriction on the lease of agricultural land at 6,000 hectares in one district will not allow these enterprises to ensure the reliable supplies of sugar beets for sugar production.
Yarchuk noted that one enterprise with the average processing capacity of 5,000 tons per day needs the supply of sugar beets harvested from an area of 15,000-17,000 hectares located about 50 kilometers from it.
He also said that over the past ten years, a number of vertically integrated sugar companies in Ukraine had formed stable areas, located around sugar mills, for the cultivation of raw materials with their total area of 300,000 hectares, which is over 70% of the total area under sugar beets in Ukraine.