Ukraine will reduce sugar exports in the new season amid a 12-20% drop in stock prices per year

The press service of the National Association of Sugar Producers of Ukraine reported on its Facebook page the results of the 2024/25 marketing year, which ended on August 31.

Thus, according to operational data, in the 2024/25 MY Ukraine exported 580 thousand tons of sugar, which is 32% of the produced volume. At the same time, in the 2023/24 MY the country exported 692 thousand tons of sugar, or 48% of the produced volume.

Of the total exports in the 2024/25 MY, 17% were delivered to the EU countries, and 83% to other countries, while in the previous season 77% of total exports were shipped to the EU, and 23% to other countries. The main buyers of Ukrainian sugar in the 2024/25 MY were: the EU (17%), Turkey (14%), Libya (10%), North Macedonia (8%), Lebanon (5%) and Somalia (5%). Among the EU countries, the main buyer of Ukrainian sugar was Bulgaria, where 59% of the total volume went.

At the same time, the association's experts emphasized that Ukrainian farmers have already begun harvesting sugar beet for processing in the 2025/26 MY. The specified areas for harvesting this year are 198 thousand hectares, and the forecast for sugar production is 1.5 million tons.

This season, due to reduced export quotas to the EU and adverse spring weather, farmers have reduced sugar beet areas by 15%, which will lead to a decrease in production and exports. However, under the pressure of falling stock prices, further price declines can be expected.

In Ukraine, sugar prices increased seasonally in August, but in September they decreased to 25.5-27.5 UAH/kg.

On the London Stock Exchange, October futures for white sugar No. 5 have fallen by 4.6% since the beginning of September to $480/t and are trading 12% lower than a year ago, and for cane sugar No. 11 – by 3.2% to $15.8/lb or $348/t, which is 20% lower than last year.

The decline in world sugar prices is due to forecasts of an increase in global cane sugar production in Brazil and India, as well as a reduction in the percentage of cane processing into ethanol and an increase in processing into sugar.