Ukraine to halt EU sugar exports

The Ukrainian government will officially prohibit sugar exports to the European Union (EU) for the remainder of this year due to the fulfilment of its EU quota, according to Reuters citing the Ukrainian acting farm minister.

Taras Vysotskiy noted that the export volumes of sugar to Europe have reached the limit set under new regulations governing “trade benefits.” Ukraine stands as Europe’s second-largest sugar provider.

Vysotskiy mentioned at an agricultural conference that while other markets will remain unrestricted, access to the EU market will resume only from January 1st onwards, at which point export volumes will be clarified.

The EU’s restrictions, announced in April, came in response to widespread protests from regional farmers who argued they faced unfair competition from non-EU producers like Ukraine, which are not subjected to the same environmental regulations and bureaucratic hurdles.

Analysts said this month that Ukrainian sugar exports had hit 262,600 metric tons, meeting the volume defined as Ukraine’s quota for 2024 under EU rules. In the calendar year 2023, Ukrainian producers shipped approximately 493,000 tons of sugar to the EU.

Producers anticipate a nearly 3 per cent increase in white sugar production in Ukraine to 1.85 million metric tons in 2024, with an exportable surplus projected to reach 950,000 tons in the 2024/25 season.