Sugar industry of Ukraine: A look at production and domestic consumption

Ukraine, as a major sugar producer, faces the issue of supplying its own sugar market and exports in a stable market situation. According to Taras Vysotskyi, First Deputy Minister of Agrarian Policy and Food of Ukraine, in 2023-2024, Ukraine will produce about 1 million 800 thousand tons of sugar, which at first glance seems sufficient for the domestic needs of Ukrainians.

According to the Ministry of Agrarian Policy, up to one million tons of sugar are needed annually for domestic consumption, and current production meets the country's domestic needs. The meeting on the development of the sugar industry emphasized the stability of the market situation, and the average wholesale price per ton in early 2024 is 23-24 UAH per kilogram.

Taras Vysotskyi noted that the production is sufficient to meet the domestic needs of Ukrainians and to fulfill the required export volumes. According to the Memorandum of Understanding, the maximum volume of sugar exports in the 2023/2024 marketing year is up to 650 thousand tons.

An important step in regulating the sugar industry was the signing of a Memorandum of Understanding with the National Association of Sugar Producers of Ukraine (Ukrtsukor) in November 2023. The document regulates sugar export volumes based on the preliminary balance of supply and demand in the 2023/2024 marketing year.

In 2023, Astarta Holding broke the record for sugar production, reaching 377 thousand tons of sugar from 2.7 million tons of sugar beet. This was the best result in the last five years, indicating positive trends in the industry.

Another important aspect is that even with the increase in average food prices in December 2023, sugar prices decreased by 5.8%, which may have a positive impact on consumer activity in the country. Taking these factors into account, we can conclude that the Ukrainian sugar industry has the potential for sustainable development and efficient use of domestic and foreign markets.