Ukrainian sugar producers are looking for new markets due to the closure of exports to the EU

Ukraine is experiencing a significant decline in sugar selling prices, which are currently at 26.5-27.5 UAH/kg. This trend is caused not so much by the growth of sugar stocks in the country as by difficulties with exports. This was reported during an analytical briefing of the agricultural cooperative PUSK, created within the framework of the VAR.

“During August, Ukraine exported only 3-4 thousand tons of sugar, which is a critically small figure compared to the 100 thousand tons exported two months ago. The Ukrainian sugar market is facing difficulties, as we are now fully focused on domestic consumer demand,” the analytical department of the PUSK says. In the future, we can expect an increase in sugar stocks in Ukraine, as domestic production will increase. Against the background of closed exports to Europe, Ukrainian producers need to look for new markets.

“However, in the new season, Europe will also increase sugar production, which will complicate the sale of Ukrainian products internationally. Objectively, by January 2025, Ukraine will either have to pay high export duties or wait for the quotas to be zeroed,” analysts say. Given the current situation, we can expect prices to be low in the new season. “Given the instability on export markets and local surplus, domestic sugar prices are likely to remain under pressure,” the PUSK summarizes.

Tags: Ukraine, export, sugar