Ukraine introduced a ban on sugar exports until September

31 May 2023

The government ban was a response to record volumes of Ukrainian sugar exports in recent months..

Due to the favorable conditions of the global sugar market, which has seen a significant increase in prices over the last period of time, as well as due to the cancellation of duties on the import of Ukrainian sugar from the EU countries, Ukrainian sugar exports in the current season were at a level close to record.

From the beginning of the season (October 2022) and till the end of May, Ukraine exported about 380,000 tons of sugar. Taking into account the significant sugar stock from the previous season, sugar output in the current season at the level of 1.3 million tons, as well as the expected domestic sugar consumption in the country of about 1 million tons, according to our expectations, the export of sugar from Ukraine in the current season, according to our estimates, should have amounted to about 400 thousand tons.

Considering that exports have already almost reached this mark, the decision of the Cabinet of Ministers is an attempt to prevent a significant reduction of sugar stocks in Ukraine and to restrain the increase in domestic prices, which was expected as a result of significant exports.

The ban on sugar exports will be in effect from the beginning of June until September 15, 2023.

In the new season, Ukrainian farmers significantly increased the area under sugar beet (from 181,000 hectares to more than 240,000 hectares). Under normal weather conditions, this year's sugar beet harvest in Ukraine may be at about 11.3 million tons, preliminary estimates of sugar production 1.5 million tons.

The largest producers and exporters of sugar in Ukraine are Astarta, Ukrprominvest-Agro and Radehiv-Sukor.

Our recent review of the Ukrainian sugar market is available here.

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