Record Sugar Production and Export Trends in Ukraine

Ukraine’s sugar beet harvest for 2024 is nearly complete, with 12.1 million tonnes harvested from 253.4 thousand hectares, yielding an average of 47.7 tonnes per hectare. Refineries processed 9 million tonnes of sugar beets, producing 1.165 million tonnes of sugar, maintaining levels similar to last year.

The country is on track to export over 700,000 tonnes of sugar in 2024, the highest since 2000. Between January and November, Ukraine shipped 622,000 tonnes, generating $356 million in revenue. October and November saw monthly exports of 74,000 tonnes and 72,000 tonnes, respectively.

EU Restrictions Impact in Trade

Until June 2024, Ukraine actively exported sugar to the EU. However, a licensing regime imposed by Ukraine’s government and the EU's “emergency braking” mechanism curtailed these exports. Presently, Ukrainian sugar can only be sold to the EU market by paying a hefty duty of €419 per tonne.

From January 1, 2025, to June 5, 2025, sugar exports to the EU are expected to resume under a quota system, capped at 109,400 tonnes. This quota reflects the average annual import levels recorded between July 2021 and December 2023.

Analysts at the Agro Perspektyva center predict sugar production for the 2024/25 marketing year could reach 1.75 million tonnes, with exports estimated at 600,000 tonnes. This is a slight decline from the 2023/24 season, which saw 1.8 million tonnes of production and 690,000 tonnes of exports.

Domestic Prices and Global Trends

The area sown with sugar beets increased in 2024 to 258,000 hectares, including 246,300 hectares on farms. Despite this, sugar prices in Ukraine remain low, at 23-24 UAH per kg, due to falling global prices and subdued export demand.

On the London Stock Exchange:

• March futures for white sugar fell by 3.2% to $0,533 per kg (down 3.2% monthly and 7% annually).
• Cane sugar traded at $0,460 per kg, reflecting a 0.5% monthly gain but a 1.7% annual decline, as favorable weather in Brazil boosted production.

Conclusion: Uncertainty Ahead for Ukraine's Sugar Market

Ukraine’s sugar industry faces challenges due to restrictive EU policies and declining global prices. However, increased production and renewed export opportunities in 2025 offer a chance to stabilize the market. With improved weather in key producing countries like Brazil, global sugar prices may experience further shifts, influencing Ukraine’s competitive position.





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