In 2022/23 MY, the common domestic sugar market of the EU countries recorded a deficit of 2 million tons. Oleksandr Korotynskyi, Director of the SIC “Sugar Beet Production”, said that according to leading analytical agencies, the deficit of 2 million tons will continue in the coming 2023/24 MY, AgroPortal reported.
We can state that the export of Ukrainian sugar in no way hinders or creates significant competition for European producers. Ukrainian sugar is produced from sugar beets (without any government subsidies or support), and we can say that European producers are in much better conditions. At the same time, the ban on sugar exports to Poland and Hungary may lead to an increase in domestic prices for this product in these countries. According to statistical information, Poland annually imported 200-300 thousand tons of raw sugar for domestic needs, which may also indicate a deficit domestic market.
On April 3, 2023, white sugar futures on the ICE exchange rose to their highest level in 10 years. May white sugar LSUc1 rose to $643.
In February, analysts predicted a global sugar deficit of 1.01 million tons in 2023/24 MY.
Earlier, the USDA forecasted that in 2022/23 MY Ukraine’s sugar production would amount to 1.1 million metric tons (MMT), down 23% from the previous estimate.
In the new season, there will be no shortage of sugar in Ukraine, but the price may rise by 10-12%. This year, the number of operating sugar factories in Ukraine should increase compared to 2022.