The EU may again restrict imports of Ukrainian sugar. What are the reasons
20 March 15:35
The European Commission is planning to drastically cut imports of Ukrainian sugar after EU producers complained that supplies from Ukraine caused a collapse in sugar prices. Reuters reports this with reference to three sources, "Komersant Ukrainian" informs.
As you know, in 2024, under pressure from European producers, Brussels returned quotas for Ukrainian sugar, but on January 1, 2025, thanks to new agreements on trade liberalization, Ukrainian producers’ access to the EU market was restored. The annual quota is 262.6 thousand tons. Moreover, according to the Ukrtsukor Association, exports to the EU resumed only in February and amounted to only 6,559 tons.
But… European farmers, according to Reuters, claim that imports from Ukraine affect local suppliers: they reduce product prices and make sales more difficult.
The agency’s sources say that the intention to reduce sugar imports was mentioned by EU Commissioner for Agriculture Christof Hansen during a meeting with leaders of French farmers’ unions and industry representatives at the Paris Farm Show in late February.
Sources who attended the meeting said Hansen did not say exactly how much imports could be cut, but said they would be “significantly lower” than current levels.
In response to Reuters’ request for comment, the European Commission said it was aware of European farmers’ concerns about imports of certain agricultural products, but declined to comment further.
How Europe has imported Ukrainian sugar in recent years
After Russia’s full-scale invasion of Ukraine in 2022, the European Union, as you know, canceled duties on Ukrainian agricultural products.
This step led to a sharp increase in cheaper imports of Ukrainian sugar, which reached 400,000 tons in the 2022/23 season and more than 500,000 tons in 2023/24, significantly exceeding the pre-war quota of 20,000 tons.
According to the EU, sugar prices in Europe fell by more than 30% last year. Complaints from European farmers about unfair competition prompted the EU to reintroduce an import quota of 262,650 tons last July.
After the first part of the quota was exhausted, the EU stopped importing Ukrainian sugar, forcing Ukraine to redirect its sugar supplies to other countries.
The second part of the quota for 109,440 tons of Ukrainian sugar was opened in January, but so far Ukraine has exported little.
How much sugar does Europe need
Since 2018, sugar production in the EU has ranged from 14.5 to 17.6 million tons per year, depending on the sugar beet harvest. Reuters reports this with reference to the European Commission data. Consumption is kept at about 14 million tons, and imports are 2-3 million tons.
Is the share of Ukrainian sugar in the European market so critical, given that at the peak of supplies, Ukraine accounted for more than 50% of all EU sugar imports?
According to Oleg Nievsky, founder of the KSE Center for Food and Land Use Research, sugar imports from Ukraine did not create a “glut” on the EU market?
“On the contrary, it compensated for the decline in production within the EU, which decreased by more than 2 million tons in two years. At the same time, prices remained high – over $800 per ton,” recalls Oleg Nivievsky.
Where else is Ukrainian sugar exported to?
Last year’s restrictions on supplies to the EU encouraged Ukrainian producers to look for other markets. As a result, 40% of exports went to the EU, and 60% went to the global market in 2024.
According to the Ukrtsukor Association, in the first 6 months of the 2024/25 marketing year (September 2024-February 2025), the main export destinations for Ukrainian sugar remained the following: Turkey (18% of total exports), Libya, North Macedonia, Somalia, and Sri Lanka.
The main EU countries to which Ukrainian sugar was exported during this period were Bulgaria (72% of the exported volume), Greece (12%) and Italy (12%).
During the first 6 months of 2024/25 marketing year (from September 2024 to February 2025), Ukraine exported more than 403.5 thousand tons of sugar. 98.4% of the volume was exported to the world market, 1.6% – to the EU countries.
According to the All-Ukrainian Agrarian Council, Ukrainian producers have already adapted to supplies to countries outside Europe, and importantly, demand from these countries remains.
Although, of course, Ukrainian suppliers would like to trade with Europe: the logistics are simpler and the prices are better. The EU market is considered to be a premium market for Ukrainian companies, with prices that can be 15 percent higher than world prices.
