Vietnam: Smuggled sugar is squeezing the domestic industry

Published 2022년 3월 22일

Tridge summary

The article discusses the potential impact of the Russia-Ukraine conflict on the global sugar market. It highlights that Russia, which has been self-sufficient in sugar production since 2016, is now facing a shortage due to below-average harvests and depleted reserves, leading to price controls and import efforts. However, sanctions could affect sugar beet seed imports, potentially necessitating more sugar imports. The conflict and economic sanctions have also disrupted global sugar supply and led to an increase in world sugar prices. In Vietnam, the sugar industry is producing a substantial amount of sugar from pressed sugarcane, ensuring a sufficient supply for the near future. However, the industry continues to struggle with smuggled and fraudulent sugar from other countries, including Thailand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Commenting on how the conflict between Russia and Ukraine will affect the supply and demand of sugar and the price of sugar in the world, international analysts said that Russia produces 6 million tons of sugar a year, so it self-sufficient since 2016 and is no longer a major sugar importer. However, the output of the two most recent sugar beet harvests in 2020-2021 and 2021-2022 are both below average and Russia has exhausted its sugar reserves. According to forecast analysis from Czarnikow, by August this year, Russia's sugar reserves could fall below 10% of annual consumption. Currently, the Russian government has imposed price controls and sought to import sugar. However, the conflict between Russia and Ukraine will affect shipping in this area. At the same time, another flaw in Russia's sugar self-sufficiency plan is that the country currently imports more than 95% of beet seeds. Seeds for the 2022 crop in Russia have been purchased, Czarnikow said, but securing beetroot ...

Source: Vietstock