16.06.2026, 11:50
Sugar production in Russia predicted to decline
Source: OREANDA-NEWS
OREANDA-NEWS In the next agricultural year, which runs from August 1, 2026 to July 31, 2027, sugar production in Russia will fall by 10.7 percent to 6.25 million tons. This forecast was given by the analytical service of the US Department of Agriculture (USDA), which traditionally remains one of the main benchmarks for the global market, Kommersant writes.
In the current season, according to experts, output will grow by 3.7 percent, but further due to falling demand in the country, the dynamics will change.
According to a preliminary assessment, the Institute for Agricultural Market Studies (ICAR) expects production to decrease by 1.6 percent next season, to 6.3 million tons. Evgeny Ivanov, a leading expert at the institute, explained that a correction in output may begin after a decrease in acreage for sugar beet.
Albina Koryagina, Neo's business development partner, did not rule out that the overall result would be affected by bad weather, that is, a decrease in yields. She recalled that the profitability of sugar beet cultivation in the first quarter of this year fell to eight percent, which is 6.9 percentage points less than two years earlier. This situation encourages farmers to switch to more profitable crops.
USDA analysts expect sugar consumption in the Russian domestic market to reach 5.75 million tons next agricultural year, which is 11.5 percent less than this year. ICARUS is talking about 5.6 million tons and a 0.9 percent drop.
According to Koryagina, food manufacturers are increasingly replacing sugar with cheaper sweeteners in order to keep prices down and keep products affordable for consumers.
At the same time, sugar consumption is also affected by the excise tax on sugar-containing beverages, which has reduced their share from 75 percent to 30 percent in three years. This trend is also supported by consumers' demand to reduce the caloric content of products.
Earlier, the analytical company NTech estimated that in 2025, sugar sales in Russia increased by eight percent in physical terms and four percent in monetary terms, and powdered sugar — by 22 and 20 percent.
In the current season, according to experts, output will grow by 3.7 percent, but further due to falling demand in the country, the dynamics will change.
According to a preliminary assessment, the Institute for Agricultural Market Studies (ICAR) expects production to decrease by 1.6 percent next season, to 6.3 million tons. Evgeny Ivanov, a leading expert at the institute, explained that a correction in output may begin after a decrease in acreage for sugar beet.
Albina Koryagina, Neo's business development partner, did not rule out that the overall result would be affected by bad weather, that is, a decrease in yields. She recalled that the profitability of sugar beet cultivation in the first quarter of this year fell to eight percent, which is 6.9 percentage points less than two years earlier. This situation encourages farmers to switch to more profitable crops.
USDA analysts expect sugar consumption in the Russian domestic market to reach 5.75 million tons next agricultural year, which is 11.5 percent less than this year. ICARUS is talking about 5.6 million tons and a 0.9 percent drop.
According to Koryagina, food manufacturers are increasingly replacing sugar with cheaper sweeteners in order to keep prices down and keep products affordable for consumers.
At the same time, sugar consumption is also affected by the excise tax on sugar-containing beverages, which has reduced their share from 75 percent to 30 percent in three years. This trend is also supported by consumers' demand to reduce the caloric content of products.
Earlier, the analytical company NTech estimated that in 2025, sugar sales in Russia increased by eight percent in physical terms and four percent in monetary terms, and powdered sugar — by 22 and 20 percent.
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