The area planted with sugar beets in Ukraine could decrease by 20% in 2025 compared to 2024, due to significant difficulties in exporting white sugar, the national association of sugar producers in the country said on Tuesday.
In 2024, around 250,000 hectares of sugar beets were sown, which is the same level as in 2023 according to Reuters. However, the future looks bleak. According to Yana Kavushevska, the chairwoman of the sugar producers’ association, a decline in the cultivation area is threatened, particularly due to restrictions on the main export market, the European Union.
EU Market Blocked
The European Union has traditionally been the main buyer of Ukrainian sugar, but after Ukraine’s export quota was exhausted, this market is currently closed. In April, the EU introduced restrictions after farmers from various member states protested against competition from producers outside the EU internal market, including Ukraine. These producers are subject to less strict environmental regulations and less bureaucracy, which led to tensions.
Export Data and Production Forecasts
The EU restrictions have had an immediate impact on Ukraine’s exports. According to the Ministry of Agriculture, Ukraine’s exports of white sugar dropped to 10,300 metric tons in July 2024 after the EU restricted its sugar imports from Ukraine. In comparison, in 2023, Ukraine produced 1.8 million tons of white sugar from sugar beets, significantly less than in Soviet times, when around 5 million tons were produced annually.
For 2024, the association expects a production of no more than 1.7 million tons, while the Ukrainian Ministry of Agriculture gives a slightly more conservative estimate of 1.55 million tons.
Expected Decline in Cultivation Area in 2025
Due to export problems and a saturated domestic market, the sugar beet cultivation area could drop by 20% in 2025. This would be a step backward compared to the increases in cultivation area in 2023 when the area expanded from 186,000 hectares in 2022 to 250,000 hectares, which boosted production in 2023 accordingly.
Saturated Domestic Market
Ukraine, which traditionally produces white sugar from sugar beets, consumes less than 1 million tons per year. This means that despite the reduced export opportunities, a large surplus of sugar exists, presenting additional challenges for the future of Ukrainian sugar production.
Conclusion and Outlook
With saturated domestic demand, closed export markets, and growing competition in the global market, Ukraine may be forced to further reduce its sugar production. The sugar beet cultivation area could be drastically reduced in 2025 if no alternative markets or export agreements are found.
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