Domestic prices for Ukrainian sugar continue to fall due to trade restrictions imposed by the European Union, and wholesale prices from factories may drop to 18-19 UAH/kg, according to the analytical cooperative “Pusk”, created within the framework of the All-Ukrainian Agrarian Council (AAC).
“Ukrainian sugar remains mostly on the domestic market due to limited exports. Attempts to supply products to Turkey, Macedonia and other countries have not yet allowed to significantly unload stocks. Due to trade restrictions with the EU, which will last until 2025, Ukraine is facing difficulties in exporting sugar,” the analysts explained and added that this trend is likely to continue in the coming months.
According to experts, some factories in Ukraine have already started to reduce prices from the previous 21.50-22 UAH/kg to 21 UAH/kg. They expect that in September-October, prices may fall to 18-19 UAH/kg due to the oversaturation of the domestic market.
At the same time, the global sugar market shows a significant increase in prices due to a number of factors.
“Among the key reasons is a significant drought in Brazil, which has seriously affected sugar cane yields. The situation was further aggravated by large-scale fires that damaged 5 to 8% of the acreage. This has led to a significant increase in the cost of sugar on world markets,” Pusk stated.
