- Sugar imports from Ukraine to the EU have increased tenfold to 400,000 tons and could rise further to 1 million tons next season.
- Noticeable price increases on the world markets.
- European producers are concerned and are calling on the European Commission to regulate exports and local sugar production, which could lead to price increases within the EU.
Intensification of sugar imports from Ukraine to the EU
Ukraine’s sugar imports to the EU have risen dramatically, reaching over 400,000 tons last season, ten times the previous amount. It is estimated that this amount could rise to 650,000 tons in the 2023/24 season and even to over 1 million tons in the following season. This increase is partly due to a change in strategy by farmers, who are increasing sugar production while reducing grain production due to lower profitability.
Temporary fall in sugar prices on the European market
The temporary fall in sugar prices on the European market is the result of a significant increase in imports from Ukraine. We are observing that prices have fallen from a high of around € 1,000 to around € 800 per ton. However, given the current situation in which sugar prices continue to rise on the global markets, the introduction of new market regulations could reverse this downward trend. Such changes will contribute to a renewed rise in sugar prices in the EU, especially against the backdrop of global price dynamics.
Reaction of EU producers and farmers
European sugar producers and beet growers are concerned about the local decline in sugar prices, especially after several difficult seasons in which prices have risen.
Industry associations and farmers are calling on the European Commission to intervene, proposing to introduce export quotas for sugar from Ukraine and to oblige Ukraine to ensure that exported sugar is produced locally, in line with the environmental rules that apply to farmers in the EU.
These demands may be difficult to accept in the backdrop of the war in Ukraine and rising sugar prices, but the industry emphasizes that a balance must be struck between supporting Ukraine and protecting the local sugar industry by introducing regulations that have a decisive influence on the price of sugar in the EU.
