According to the free trade zone with the EU, Ukraine is possible to export 20 thousand tonnes of Ukrainian sugar per year. The quota was filled in 2-3 months. Domestic sugar producers shipped the remaining quantities through the ports of the Black Sea and Odesa, supplying Türkiye, Azerbaijan and other Asian and African countries. At present, only EU countries are our sugar clients. This was stated by Oleksandr Korotynskyi, Director of SIC Sugar Beet Production, member of the Agricultural Committee of the Ukrainian Chamber of Commerce and Industry, in an article for The Ukrainian Farmer magazine.
In neighbouring European countries, domestic wholesale prices per tonne of sugar are 800-850 euros/tonne, and in export-dependent countries (Italy, Spain, Portugal, Greece, Bulgaria) – 1000 euros/tonne. Therefore, Ukrainian sugar is in great demand on the European market.
The average price of the cheapest packaged sugar in European supermarkets is UAH 52 (EUR 1.29), while in Germany the cheapest package costs UAH 60 (EUR 1.49). And domestic retailers offer a kilogram of sugar for UAH 34 (EUR 0.84),” Korotynsky said.
“Price will level out”
“At the moment it is not certain that this price difference will be observed for a long time. In an open market, any significant price difference should eventually level out. Therefore, there is a high probability that the price of Ukrainian sugar on store shelves, produced from the new sugar beet harvest, will increase.
In February, analysts predicted a global sugar deficit of 1.01 million tonnes in 2023/24 MY. Prior to that, the USDA predicted that Ukraine would produce 1.1 million tonnes (MMT) of sugar in 2022/23 MY, 23% less than the previous estimate.
Sugar producers in Ukraine face two problems this year: the war and energy prices. There will be no shortage of sugar in Ukraine next year, but the price may rise by 10-12%. The number of sugar factories in Ukraine should increase this year compared to 2022.