February 12, 2020 / 7:39 AM / 3 months ago

Rusagro says cost of sugar exports remains high on lack of port investment

DUBAI, Feb 12 (Reuters) - Russian farming conglomerate Rusagro said on Wednesday the cost of exporting Russian sugar remained high due to lack of investments in port logistics.

“Industry and other players are not investing in the logistics in ports mainly, so to export sugar we have to use the same logistics the country is using for wheat and other grains, and in this case it is a situation where demand for export is growing but supply for service is the same,” Rusagro Sugar’s CEO Nikolay Zhirnov told an industry conference in Dubai.

Russia’s sugar output is expected to reach a record high of 7 million tonnes in 2019, the country’s agriculture ministry said in October.

On Wednesday, Zhirnov put output for the 2019 season in the same range.

Total exports would range around 1.1 million tonnes, mostly to the CIS region.

This year is the fourth year Russia has a production surplus in sugar. Zhirnov said the higher crop was helped by increasingly warm weather.

“It is very warm weather this year in Russia, for example this year was only new year without snow in the last ten years.” (Reporting by Maha El Dahan and Nafisa Eltahir, editing by Louise Heavens)

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