Ukraine is actively seeking sugar buyers as the EU quota is nearly depleted. The country’s sugar export quota for 2024 is expected to be fully utilized within the next month, potentially leading to a significant decrease of up to 20% in sugar beet cultivation.
This comes as a response to the ongoing protests against the influx of cheap imports following Russia’s invasion in February 2022. The European Commission has proposed measures to restrict Ukrainian agricultural supplies, but their implementation is contingent upon the approval of EU governments and the European Parliament.
Taras Vysotskiy, Ukraine’s deputy agriculture minister, recently announced that the country’s sugar export quota will be completely utilized by June 5, with a cap of 262,000 tons for the year. Furthermore, there will be no sugar exports to the EU until January 1, 2025. In light of these restrictions, Ukraine is exploring opportunities to expand its sugar output to new markets in the Middle East and West Africa.
Vysotskiy highlighted that in April, 30% of Ukraine’s sugar exports were directed to countries outside the EU, including Cameroon, Turkey, Israel, and Guinea. He also hinted at the potential expansion into Asian markets, with the Suez Canal playing a pivotal role in facilitating trade.
However, it is worth noting that trade between Asia and Europe through the Suez Canal has faced challenges since November due to attacks by Iran-allied Houthi militia in Yemen on vessels in the Red Sea.
Despite these obstacles, Ukrainian farmers have managed to maintain the sugar sowing area for 2024 at an impressive level of approximately 240,000 hectares. Nevertheless, there is a possibility of a 20% decrease in acreage for 2025 if producers are unable to find sufficient demand for their output.
