A new season of sugar production has begun in Ukraine

As of September 1 of the current year, the processing of the new sugar beet crop in Ukraine has started at three factories in the Vinnytsia, Ternopil, and Lviv regions. Overall, specialists note that expectations for a massive early launch of factories this year have not been met, as dry weather conditions have complicated the harvesting of sugar beets, causing several factories to postpone the start of processing to later dates.

Total sugar production in Ukraine for the 2024/25 season is expected to be around 1.55 million tons. According to forecasts from the Ministry of Agrarian Policy, taking into account carryover stocks, the supply of sugar in Ukraine will more than double the needs of the domestic market, which are estimated at 0.95 million tons. Moreover, by August, 33 sugar factories in Ukraine were technically prepared to operate for the current season. Traditionally, in the first half of the season, sugar factories process the bulk of the harvest. Therefore, experts expect that by the end of the year, at least 11.5 million tons of sugar beets will be processed. Additionally, current carryover sugar stocks in Ukraine amount to 416 thousand tons. This figure is 96 thousand tons, or 30%, higher than the corresponding date of the previous season.

Additionally, since the beginning of the current year, Ukraine has already exported 421.8 thousand tons of sugar, of which 301 thousand tons were shipped to EU countries. In total, since the Memorandum of Understanding between the Ministry of Agrarian Policy and "Ukrtsukor" took effect, along with the government decree establishing a zero quota for sugar exports to the EU, which came into force on June 1, 665 thousand tons of sugar have been sold. Just in May of this year, Ukrainian entrepreneurs sold 158.5 thousand tons of sugar. Of this amount, 110.5 thousand tons were exported, including 72 thousand tons to EU countries. Currently, according to the EU Regulation on temporary trade liberalization with Ukraine, sugar is classified as one of the sensitive products, subject to critical import volumes. After these quotas are exhausted, the European Commission will revert to standard trading conditions, which entail the imposition of tariffs in accordance with the Association Agreement between Ukraine and the EU. The quota for Ukrainian sugar for the year 2024 was set at 262.6 thousand tons. Due to high export rates, it was exhausted already in May, after which sugar supplies to the EU ceased. The next quota will be opened from January 2025.