In Ukraine, a sharp drop in sugar prices is predicted due to export problems

Sugar prices in Ukraine may drop significantly in the coming months due to difficulties with its export to the European Union. According to analysts' forecasts, the price of sugar on the domestic market may drop to UAH 18-19 per kilogram. This will be a consequence of oversaturation of the market with products that cannot be exported to EU countries due to trade restrictions.

As the press service of the All-Ukrainian Agrarian Council reports with reference to the analytical department of the PUSK agricultural cooperative, the main reason for the drop in prices is the restrictions on the export of Ukrainian sugar to the EU, which will be in effect until 2025. Due to these restrictions, significant stocks are accumulating in warehouses, which leads to pressure on prices in the domestic market.

Although Ukraine is trying to establish exports to Turkey, Macedonia and other countries, this does not allow for a significant unloading of sugar reserves. As a result, some factories have already started to reduce wholesale prices. Thus, the price of sugar, which was recently 21.50-22 UAH per kilogram, decreased to 21 UAH/kg. Experts predict that in September-October prices may decrease even more — to UAH 18-19 per kilogram.

At the same time, the opposite trend is observed on the global sugar markets — prices are rising. One of the main reasons is the drought in Brazil, which significantly affected the yield of sugar cane. In addition, significant fires damaged 5 to 8% of the cultivated area, further complicating the situation. These factors led to a significant increase in sugar prices on world exchanges.

Thus, despite the global increase in the price of sugar, the domestic market of Ukraine is faced with a surplus of products and falling prices. This is due to high yields and difficulties with export. It is expected that this situation will continue until it is not possible to find new sales markets or to relax trade restrictions on the part of the EU.