Russia is Running Out of Storage Space for Sugar as Output Hits Record
- Producers are storing in open air or at independent warehouses
- That’s raising costs at a time when low prices squeeze margins
Photographer: Andrey Rudakov/Bloomberg
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Russia is producing so much sugar that it’s running out of storage space.
Output has doubled in the past decade and is expected to climb 20% to a record this season thanks to favorable weather conditions. That’s forcing producers to store refined sugar outside factories in the open air -- which damages quality -- or in independent warehouses at an extra cost, according to Russia’s sugar manufacturers union.