OREANDA-NEWS. March 15, 2010. The largest Ukrainian sugar producer Astarta <ASTPW U/R> announced its plans to increase 2010 sugar output by 42%, y/y to 320kt. To achieve this objective, the Company will raise sugar beet production by 44%, y/y to 2.2mnt. Meanwhile, the area under sugar beet will be increased by 26%, y/y to 43 thousand ha in 2010.

Millennium Capital sees the news to be moderately positive for Astarta, since Millennium Capital expects a gradual decrease in the domestic sugar prices through the end of 2010, which is related to the reduction in the world sugar prices. Millennium Capital estimates that such a significant sugar output growth will enable AST to maintain its sales at similar level in 2011, while we expect the Company sales to increase by 14% to UAH 1.6bn in 2010.