According to Oleksandr Korotynskyi, Director at the Sugar Beet Production Research and Production Center and a member of the AIC Committee at the Ukrainian Chamber of Commerce and Industry, this shift in export dynamics has significantly influenced global trade flows of Ukrainian sugar.
1. The Shift Away from the EU Market
- High Global Prices: By fall 2024, world sugar prices had climbed – on the London Stock Exchange, the commodity’s price reached $550 per ton, which encouraged Ukrainian sugar refiners to sell to non-EU markets offering profitable margins.
- Export Incentives: Ukrainian producers did not wait for an EU market reopening, instead opting to actively export to international customers keen on buying large volumes of sugar.
2. Turkey Leads Among Global Buyers
2.1 The MENA Region Dominates
- Total Exports: About 37% of Ukrainian sugar exports went to countries in the Middle East and North Africa (MENA).
- Turkey as No. 1: Surprisingly, Turkey purchased 16% of all Ukrainian sugar exports – making it the top importer of Ukrainian sugar in 2024.
- Other Key Buyers:
- Libya – 12%
- Cameroon – 8%
- North Macedonia – 7%
- Somalia – 6%
- Lebanon and Israel – 5% each
- Sri Lanka – 4%
2.2 Reasons Behind Turkey’s Appetite
- Favorable Pricing: With global sugar prices soaring, Turkish importers found Ukrainian sugar competitively priced and strategically accessible.
- Reliability: Strong logistical routes between Ukraine and Turkey supported timely deliveries.
3. EU Market Reopens in 2025
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Ban Lifted
- The EU market reopened for Ukrainian sugar exporters starting January 1, 2025.
- Consequently, many Ukrainian producers quickly diverted fresh exports toward European buyers to capitalize on renewed demand.
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Quotas for 21 Factories
- The Ministry of Agrarian Policy and Food allocated export quotas among 21 sugar refineries, proportional to each plant’s actual sugar production in September–December 2024.
- This quota system aims to balance domestic supply while boosting export efficiency.
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Strong Start in Early 2025
- The easing of trade restrictions led to an immediate uptick in sugar shipments to EU nations.
- Korotynskyi confirms a surge of export flows toward Europe in January 2025.
4. Outlook for Ukrainian Sugar Exports
- Diversified Export Portfolio: The unexpected leadership of Turkey as an importer reflects the flexibility of Ukrainian sugar producers in adapting to global price shifts and regional demand changes.
- Price Stability: With more markets open – including the renewed EU access and consistent interest from MENA and beyond – Ukrainian suppliers may find stable or premium prices for their sugar in the near term.
- Production and Competition: As 21 factories strengthen their foothold in Europe while also serving non-EU buyers, Ukrainian sugar’s global presence looks poised for steady growth.
Conclusion
The 2024 ban on sugar exports to the EU prompted Ukrainian producers to expand into foreign markets, ultimately seeing Turkey rise as the top buyer. With the EU market reopening in early 2025, Ukrainian sugar finds itself well-positioned to cater to both new and traditional partners. Combined with high global prices, these evolving dynamics highlight Ukraine’s competitiveness in sugar production and export, ensuring that international demand for Ukrainian sugar remains robust.
