Export breakthrough: Ukrainian sugar set the highest record in 27 years
5 January 11:37
In 2024, Ukraine reached a historic record in sugar exports, supplying 746,300 tons of products to world markets for a total of $419 million. This was reported by the press service of the National Association of Sugar Producers of Ukraine “Ukrtsukor“, Komersant ukrainskyi reports
“The year 2024 was a record year for the domestic sugar industry – Ukrainian sugar producers set a historic export record,” the association said in a statement.
This is the highest export figure for a calendar year since the creation of Ukrtsukr.
“This is the highest rate of sugar exports within a calendar year according to statistics that dates back to 1997, when the National Association of Sugar Producers of Ukraine was established,” the association said.
Where sugar was supplied to
40% of exports went to the European Union.
60% of sugar went to the world market, where the main buyers were MENA countries (Middle East and North Africa) and North Macedonia.
Export destinations to the world market in 2024:
- Sri Lanka – 4%,
- Israel – 5%,
- Lebanon – 5%,
- Somalia – 6%,
- North Macedonia – 7%,
- Cameroon – 8%,
- Libya – 12%,
- Turkey – 16%,
- all others – 37%.
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The preferential trade regime and its enemies
The decision to allow the free import of Ukrainian goods into the EU was made by the EU at the beginning of the full-scale Russian invasion as a gesture of support for the Ukrainian economy and in response to the Russian naval blockade of Ukrainian ports. During the two years of its operation, the simplified regime has gained a lot of opponents in the European Union. In particular, the governments of Bulgaria, Poland, Hungary, Romania, and Slovakia demand to restrict imports of Ukrainian products (later France joined this position). They claim that cheap agricultural products from Ukraine are swallowing up their markets.
Six major European farmers’ associations also protested strongly against Ukrainian products. Polish farmers have even organized a border blockade, not only with Ukraine but also with Germany.
Nevertheless, after fierce debate, the simplified trade regime with Ukraine was extended until June 5, 2025. However, at the request of these countries, it was severely restricted.
Thus, new “safeguards” were added to the duty-free trade provisions to protect European producers.
In particular, the European Commission may take any measures it deems necessary if imports from Ukraine cause “significant disturbances” on the EU market or the markets of one or more EU Member States. In this case, the European Commission may launch an “emergency brake” for particularly sensitive agricultural products. This list includes the following products:
- poultry
- eggs
- sugar
- oats
- cereals
- corn;
- honey.
However, the European Commission has not only options but also responsibilities. If imports of these goods exceed the average import volumes recorded in the second half of 2021 and for the entirety of 2022 and 2023, customs tariffs must be restored within 14 days.
Thus, the EU has effectively reintroduced import quotas for many Ukrainian goods, albeit at a rather high level.
This year, Ukrainian exporters exhausted their sugar quotas in six months. Since July, the EU has not only returned the quotas, but also reduced them by 2.5 times from 2025.
