An open letter to the President from Ukrainian food producers

Jul 15 2021 published c Uncategorized, DOCUMENTS, earnings, news

Dear Mr. President!

On behalf of Ukrainian food producers products address you publicly, оскільки ми вже вичерпали всі можливості переконати Український Уряд в необхідності відреагувати на загрозливу ситуацію на ринку цукру.

Today, sugar prices in Ukraine are almost doubled higher, than on the London Stock Exchange. As of 29 June 2021 year the cost of sugar white (without VAT) LIFFE FOB (London Stock Exchange) was 432,3 $/t, and the proposal in Ukraine (without VAT) – 781.2 $/t.

Ukrainian processors live in such a reality already 10 months. During this time, the price of white sugar in Ukraine is constant exceeded world prices by 30-40%.

And it's not about global trends of rising prices on agricultural raw materials. Otherwise, the price of sugar in Ukraine would have risen, but would be maintained at world prices.

CAUSES

The described price disparities can be explained by three reasons. This is either a cartel conspiracy, or sugar deficiency, or a combination of the two the first reasons. We do not rule out, that the third variant is observed at us.

The first reason. 5 April 2021 року Антимонопольний комітет України розпочав справу проти кількох цукрових компаній за ознаками антиконкурентних узгоджених дій на ринку первинної реалізації білого цукру. The AMCU sees, that these companies by similar actions restricted competition in the market and were able to raise prices above the competitive level. hope, that the AMCU will put an end to this question. However, antitrust investigations sometimes take longer year, and sugar is needed by the population, and industry today.

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