Ukraine’s Sugar Exports to EU Almost Halve Despite Record Production

Ukraine’s sugar exports to the EU decreased from 97% in 2023 to just 40%, with the remaining 60% of exports refocused to the Middle East, North Africa, and North Macedonia, Forbes Ukraine estimated.

This did not happen to the shortage of supply inside the country either.

Sugar exports reached a 27-year high in 2024, surpassing the previous year’s figures by 47%. Over the year, Ukrainian farmers sold 746,300 tons of sugar on global markets, generating $419 million, Forbes wrote.

This is the largest volume of sugar produced since 1997.

Increased demand for Ukrainian sugar in the Middle East and North Africa, high sugar prices in 2024 of €510 per ton on average, and the stable operation of seaports throughout the year contributed to the record, according to Forbes.

Three Ukrainian sugar producers complained to Forbes Ukraine that the EU no longer wants their production.

The key reason is that demand for sugar in Europe is decreasing due to consumer behavior, S&P Global Commodity Insights wrote.

Dmytro Panchuk, deputy general director of Khmelnitsky agricultural company Aspik Group, told Forbes: “We knew the EU would close its doors.”

Aspik Group increased sugar production by 25% in 2024, reaching 115,000 tons, of which 50,000 tons were exported to Libya, Turkey, Cameroon, and Georgia, Forbes wrote.

Ukraine’s 34th largest company Astarta and one of Ukraine’s largest sugar producers owned by Viktor Ivanchyk, exported sugar to the EU countries, the Middle East, and North Africa.

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For Zhytomyr agricultural company Cygnet, the main markets in 2024 were Macedonia, Turkey, and the Balkan countries.

“This option does not require costs for freight, transshipment, or insurance, as it is carried out by land. At the time of sales, the prices were more attractive,” the company’s commercial director Nataliya Bohdanovych told Forbes.

These results contrast with the lack of faith voiced by S&P Global Commodity Insights.

“Ukrainians need to take sugar to their ports and their infrastructure isn’t in good shape from the war. Finding clients from the international market will be hard for them,” a market participant who remained unnamed told the media outlet.

Prior to Russia’s invasion of Ukraine, Ukraine exported sugar to Azerbaijan, Turkey, Tajikistan, Georgia, Uzbekistan, Armenia, Israel, according to a Slovo i Dilo article.