Sugar prices rise in Ukraine due to significant reduction in production

In Ukraine, a new sugar refining season traditionally began on September 1. This year, 27 sugar factories will operate, planning to produce 1.5 million tons of products. This was reported by the National Association of Sugar Producers of Ukraine “Ukrsugar”.

They note that over the past five years, the area under sugar beet in Ukraine has been stable, at the level of 220 thousand hectares. This year, there has been a significant reduction – to 198 thousand hectares, which is 22% less than last season. The main reason for this reduction was the limited quota of the European Union for the import of Ukrainian sugar.

The traditional regions for beet cultivation remain the leaders: Vinnytsia, Khmelnytsia, Ternopil and Poltava regions.

27 factories will be launched from September 1, two less than last year.

Analysts predict the production of about 1.5 million tons of sugar in Ukraine. This is 300 thousand tons less than last season, but this volume covers domestic sugar consumption, which is estimated at 900 thousand tons since 2022.

With such domestic consumption, the industry is able to form a significant export potential for the MY 2025/2026 — 500-600 thousand tons.

According to analysts of the Ukrsugar Association, sugar exports in the MY 2024/2025 season are projected to amount to 580 thousand tons. This is about 32% of the sugar produced in the country, similar to the MY 2022/2023 season.

“Ukraine will probably lose its 10th place in the list of leading exporters, but it will still remain in the top 15 world exporters,” experts emphasize.

They add that alternative destinations for Ukrainian sugar have become countries of the Middle East and Africa.

Ukrainian sugar refineries have completed the 2024 production season, reaching a total volume of 1.8 million tons of sugar.

Ukraine produces significantly more sugar than it consumes. The needs of the domestic market are 0.95 million tons.

In 2024, Ukrainian producers set a historical record for sugar exports, sending 746.3 thousand tons of products to foreign markets worth $419 million.

40% of exports in 2024 were sent to the countries of the European Union. Also, the main countries-buyers of Ukrainian sugar on the world market were the countries of MENA (Middle East and North Africa) and North Macedonia.

Tags: Ukraine, prices, sugar