How to make suger production more effective: A case of Ukraine

The article is devoted to the analysis of efficiency of sugar companies of Ukraine and the ways of its improving. The decreasing return to scale and scale inefficiency for the majority of sugar companies are determined. The main factors of sugar plants inefficiency are defined. Developed benchmarking has revealed significant reserves of reduction of the basic inputs and potential growth of efficiency. In comparison with foreign companies the Ukrainian sugar plants have smaller material capacity of production and stuff cost, considerably lower labour and capital productivities. The recommendations for proprietors and managers of sugar companies for making of decisions on improving of efficiency are made.