OREANDA-NEWS. February 24, 2010. Ukrros Sugar Union intends to produce 50kt of cane sugar in 2010 (up 3.2 times, y/y). Additionally, the Company intends to increase the land bank of Chortkiv Sugar plant and optimize its tillage costs.

Millennium Capital sees the news to be rather neutral, since in view of the poor cane harvest in the countries of South America, the price of cane sugar is expected to remain quite high in 1H09 (the current price is USD 546 per tonne). Though the cane sugar price is markedly lower than the domestic beet sugar price (USD 1046 per tonne), Millennium Capital expects the sugar beet price to decrease in late 2010 after the new harvest of sugar beet has been gathered. As a result, UROS may increase its Net Income from the cane sugar sale only in the case of its realization in 2Q-3Q10.