Sugar exports from Ukraine are limited by a ban on supplies to the EU

The harvest of sugar beets is nearing completion in Ukraine, with 12.1 million tons harvested from 253.4 thousand hectares or 98% of the area, with an average yield of 47.7 tons/hectare.

 

Sugar refineries accepted 9 million tons of sugar beets for processing, from which they obtained 1.165 million tons of sugar, which practically corresponds to last year's figures.

 

In 2024, Ukraine is expected to export the largest volume of sugar since 2000 - over 700 thousand tons, while in January-November 622 thousand tons of sugar worth $356 million were shipped. According to the State Customs Committee, after reducing exports in June-September, sugar exports increased to 74 thousand tons in October, and in November they amounted to 72 thousand tons.

 

Until June 2020, Ukraine actively supplied sugar to the EU market, but in early June, at the request of the Ukrtsukor association, the government introduced export licensing, and the EU applied an “emergency braking” regime for Ukrainian sugar supplies. Currently, sugar can be supplied to the EU market by paying a duty of €419/t.

 

From January 1, 2025 to June 5, 2025, Ukraine may resume sugar exports to the EU, but the volume of supplies will be limited to 109.4 thousand tons. This quota is determined by the average annual import level for the period from July 1, 2021 to December 31, 2023, which amounted to 262.653 thousand tons.

 

Analysts from the Agro Perspektyva center predict that in the 2024/25 MY, sugar production in Ukraine could reach 1.75 million tons, and exports – 600 thousand tons, while in the 2023/2 MY, sugar production amounted to 1.8 million tons, and exports – 690 thousand tons.

 

According to the State Statistics Service, in 2024, the area sown with sugar beets increased to 258 thousand hectares, in particular, farms sowed 246.3 thousand hectares.

 

Against the backdrop of declining world prices and weak export demand, sugar prices in Ukraine remain at a low level of 23-24 UAH/kg.

 

On the London Stock Exchange, March futures for white sugar No. 5 fell by 3.2% to $533/t (-3.2% per month, -7% per year) during the week, while cane sugar No. 11 traded at $20.89/lb or $460/t (+0.5% per month, -1.7% per year) amid improving weather in Brazil.