Sweet exports: will Europe help Ukrainian sugar producers set a new record?
18 March 10:49
the year 2024 was a record year for the domestic sugar industry: 746.3 thousand tons of sugar were exported to foreign markets, which was the highest export of sugar in a calendar year according to statistics that dates back to 1997, when the Ukrtsukor association was established. This was recently reported by the National Association of Sugar Producers of Ukraine, Komersant ukrainskyi informs.
At the same time, 60% of exports went to the world market in 2024, and 40% were sent to the EU countries. “Only 40%,” says Yana Kavushevska, head of the National Association of Sugar Producers of Ukraine, Ukrtsukor, recalling that in 2023, the EU’s share of sugar exports from Ukraine was about 98%,
How Ukrainian sugar producers traded with Europe
“Until 2022, the EU almost did not import Ukrainian sugar – its share in the structure of purchases did not exceed 11%,” says Oleg Nievsky, founder of the KSE Center for Food and Land Use Research. – “But after trade liberalization in 2022, caused by a full-scale war, the situation changed: at its peak, Ukraine provided more than 50% of all EU sugar imports.
At the same time, according to the expert, imports from Ukraine did not create a “glut” in the market.
“On the contrary, it compensated for the decline in production within the EU, which decreased by more than 2 million tons over two years. At the same time, prices remained high – over $800/t. What changed in 2024? Under pressure from European producers, Brussels returned the quotas,” recalls Oleg Nievsky.
Indeed, last year was not the best in terms of sugar exports to the EU. The return of quotas limited competition and reduced supplies. However, starting January 1, 2025, Ukrainian producers will have greater access to the EU market thanks to new trade liberalization agreements. And with it, hopes that through trade with Europe, Ukraine will be able to update last year’s record.
This step has opened up the possibility for Ukraine to export larger volumes of sugar to the European market without additional duties, which previously hindered the growth of supplies. In the first 5 months of 2025, Ukrainian producers will be able to export 107.3 thousand tons to the EU. Such data was provided by the Parliamentary Agrarian Committee.
Where else does Ukrainian sugar go?
In the first 6 months of the 2024/25 marketing year (from September 2024 to February 2025), the main export destinations for Ukrainian sugar remained: Turkey (18% of total exports), Libya, North Macedonia, Somalia, and Sri Lanka.
The main EU countries to which Ukrainian sugar was supplied were Bulgaria (72% of the exported volume), Greece (12%) and Italy (12%).
During the first 5 months of 2024/25 marketing year (September 2024 – January 2025), Ukraine exported more than 352 thousand tons of sugar, which is 17% more than in the same period of 2023/24 marketing year. By the way, in a month, i.e. as of February 2025, the export figure increased to more than 403.5 thousand tons of sugar.
Ukrainian sugar producers are ready to compete for the European market
The EU market is a premium market for Ukrainian companies – prices there can be up to 15% higher than the world market. And this is certainly not the only reason why they want to work with Europe. Another is logistics.
“The global sugar market is a sea route that is currently risky and expensive, as large container lines have not yet returned to Ukrainian ports,” explains Yana Kavushevska, head of the National Association of Sugar Producers of Ukraine, Ukrtsukor. – “At the same time, the EU market is close to us both logistically and politically and economically.
She emphasizes that “Ukraine’s sugar industry is a natural extension of the European sugar beet belt: Ukraine uses European sugar beet seeds, plant protection products, European sugar beet harvesting machinery, European equipment at sugar factories and in this sense is already part of the European sugar industry.”
And the EU is a sugar importer that annually buys from 1 to 2.5 million tons of sugar from “third” countries, and our task, as Yana Kavushevska notes, is to “maximize Ukraine’s share in these imports.”
