Ukraine sets a historic record for sugar exports
7 January 21:07
In 2024, Ukrainian producers set a historical record for sugar exports, exporting 746.3 thousand tons of this product to foreign markets for $419 million. This was reported by the National Association of Sugar Producers of Ukraine, Komersant ukrainskyi reports.
“This is the highest rate of sugar exports within a calendar year according to statistics dating back to 1997, when the National Association of Sugar Producers of Ukraine was established,” the association’s press service said.
They added that 40% of exports in 2024 were directed to the European Union, 60% were supplies to the world market, where the main buyers of Ukrainian sugar were the countries of the Middle East and North Africa, as well as North Macedonia.
What is the current situation on the sugar market in Ukraine?
According to the head of the National Association of Sugar Producers of Ukraine, Yana Kavushevska, the European Union (EU) opened its market for Ukrainian sugar on January 1, 2025, but set export restrictions of 109.4 thousand tons until June 5 of the same year.
However, after this date, there is uncertainty about further EU decisions. Negotiations are currently underway on a possible increase in the quota and on the preservation of autonomous trade preferences for Ukraine. The Ukrainian side seeks an increase in the quota to 500 thousand tons, but realizes that this may take several years. If Ukrainian sugar is exported to the EU outside the quota, it is subject to a high duty that reflects its value, so this option is not as profitable. The possibility of exporting Ukrainian sugar under IPR licenses, which would allow sugar to be imported into the EU without customs clearance for processing and further export from the EU, is currently being discussed. The potential of this market is estimated at 400 thousand tons.
Ukraine’s share of the European sugar market is over 35%, but the EU also imports sugar from other countries such as Brazil, Colombia, Peru, and South Africa. The Ukrainian side emphasizes that it wants to compete with other sugar exporters to the EU, not with local producers. Negotiations are currently underway on an agreement between the EU and the Mercosur bloc, which has a significant agricultural part, and European farmers are actively discussing the problems associated with the arrangements under this agreement. The EU also imports sugar from countries that participate in the EBA and EPA agreements.
In the current price situation, exports of raw materials to Europe may not be profitable, but Ukrainian sugar remains interesting for European buyers. The European market is also attractive for Ukrainian producers because of convenient logistics. There is a quota for candidate countries, including Ukraine, that allows them to export their products to the EU. However, the quota received by Ukraine was insignificant, possibly due to previous uncertain and chaotic exports of Ukrainian sugar.
Europeans want Ukrainian exports to be predictable and transparent. For this purpose, it was proposed to distribute quotas in proportion to the sugar produced, so that each producer knows how much it can export. This will help to avoid the rush at the beginning of the year and find the best opportunities to sell products, helping Ukrainian sugar to get to those regions of the EU where it is really in demand.
Traceability is also an important aspect for Europeans. Quota allocation and export licensing facilitates traceability and transparency of operations. Ukrainian sugar does not meet the stereotype of low quality, as it used to be. The Ukrainian beet sugar industry includes both small and medium-sized farmers, and it does not threaten small European farmers.
However, the Ukrainian sugar beet industry needs to understand the established rules and approaches of the EU. In order to become a part of the complex structural body of the European Union, it is necessary to follow the rules and principles that guide the European sugar beet complex.
This year, 258 thousand hectares of sugar beet were planted in Ukraine, of which about 60% were planted by farms and 40% by independent farms. The Ukrainian sugar beet industry is diverse and includes both large agricultural companies and small and medium-sized farmers.
