Export Growth and Shift in Destination Markets

Ukraine has witnessed a significant surge in sugar exports during the first half of the 2023/24 season, with exports reaching 430,000 tons. This figure represents a substantial increase of 60% compared to the corresponding period of the previous season. Notably, March saw a notable uptick in sugar exports, rising from 75 to 81 thousand tons compared to February, and significantly surpassing the 48 thousand tons exported in March 2023.

Market Analysis and Destination Shift

Analysts point out a notable shift in destination markets for Ukrainian sugar exports. While in previous years, the majority of sugar exports were directed towards EU countries, the imposition of restrictions on Ukrainian sugar exports to Europe has prompted exporters to explore alternative markets in Africa and Asia. Deep-sea ports along the Black Sea have facilitated this redirection of exports to non-European markets.

Production and Export Projections

In 2023, Ukraine produced 1.8 million tons of sugar, with domestic consumption estimated at around 1 million tons. Given this production capacity and internal demand, experts project that sugar exports in the current season may surpass previous records, potentially reaching between 700-800 million tons. However, it is anticipated that EU countries may only be able to procure around 300-400 thousand tons of Ukrainian sugar, highlighting the significant diversification in export destinations.

The surge in Ukraine's sugar exports, coupled with the diversification of destination markets, underscores the resilience and adaptability of the country's sugar industry in response to evolving trade dynamics. As exporters continue to navigate shifting market conditions, the focus remains on maximizing export opportunities while ensuring stability in domestic supply and demand dynamics.