Ukrainian sugar producers have exhausted the annual quota for supplies to the EU and are looking for new markets

Published 2024년 6월 3일

Tridge summary

Ukrainian sugar producers have exhausted the annual quota for sugar supplies to the EU in less than 5 months, leading to a proposal to stop exports to the EU by 2025. The Cabinet of Ministers is implementing a zero quota for sugar exports to Europe as of June 1, despite potential export capacity of 1 million tons. The country has increased its sugar beet planting areas by 21%, leading to concerns about processing all beets grown this year and potential sugar surplus in 2024. This could result in lower prices, especially with strong competition from Brazil. Ukrainian sugar exporters will need to develop logistics routes and focus on profitability and product quality to find new buyers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In less than 5 months, Ukrainian sugar producers have already exhausted the annual quota for sugar supplies to the EU. Ukrtsukor proposes to stop exports to the EU by 2025, and the Cabinet of Ministers is introducing a zero quota for sugar exports to Europe on June 1, although other markets are open for exports. However, the export potential is about 1 million tons, so we need to look for new buyers, especially since farmers have significantly increased the area under sugar beet planting. This year, Ukraine supplied 283 thousand tons of sugar to the EU against a quota of 262 thousand tons. As a result of exceeding the quota, the National Association of Sugar Producers of Ukraine called on the Cabinet of Ministers to set a zero quota for 2024 so that the country could fulfill its obligations under the EU trade agreement. It is worth reminding that Ukraine has not entered the European sugar market in a good way – the uncoordinated work of different companies led to a price collapse, ...

Source: UkrAgroConsult