Ukraine managed to export 265 thousand tons of sugar in 7 months of the current marketing year (MY, September 2022 – August 2023), which is 4.8 times more than in the entire 2021-2022 marketing year, said Nazar Mykhailovyn, acting Chairman of the Board of the National Association of Sugar Producers of Ukraine Ukrtsukor.
“For the entire period of 2021/2022 MY, 55 thousand tons of sugar were exported. From September 1, 2022, to March 28, 2023, Ukraine increased exports by 4.8 times to 265 thousand tons,” he said in an interview with Interfax-Ukraine.
According to Mikhailovin, in 2022, 23 Ukrainian sugar factories produced 1.33 million tons of sugar, while a year earlier 33 enterprises produced 1.45 million tons. “The reduction in sugar production by 120 thousand tons with 30% of production capacities not used was not critical for Ukraine. In addition, we had a surplus and significant carry-over balances from 2021/2022 MY in the amount of 491 thousand tons,” the head of the association said.
He reminded that as of the beginning of the war, sugar exports from Ukraine were suspended due to the hostilities. On June 5, 2022, the Cabinet of Ministers adopted a resolution to allow sugar exports under licenses issued by the Ministry of Economy. Due to the hostilities and the lack of seaports, Ukraine was forced to change the geography of exports. According to the European Union’s decision, Ukraine can ship sugar to Europe without tariff quotas and duties.
According to Mykhailovyn, due to drought and poor sugar beet harvest, as well as higher natural gas prices than in Ukraine, Europe produced less sugar, and it was more expensive than Ukrainian sugar. “Ukraine was able to sell sugar in Europe at a decent price,” he stated.
Export of Ukraine by countries in Jan-Nov 2022
Source: Open4Business.com.ua and experts.news
Export changes in % to previous period in 2021-2022
Source: Open4Business.com.ua and experts.news
Export of goods in Jan-Nov 2022 to most important positions and in relation to same period of 2021
Source: Open4Business.com.ua and experts.news
Terra Food, a large Ukrainian dairy producer, increased its export revenues in 2022 by 15% up to $41 mn, the company’s export director Maxim Voytovych said at the Exporters Summit organized by Forbes Ukraine.
According to him, the sales increase was possible due to the diversification of the export portfolio and flexibility with which the company reacts to the changes in the consumer sentiment in Europe.
He pointed out that the headliner of the company’s sales in Poland was a vegan analogue of the butter TM NATURALE. The company also launched this brand on the Baltic, Bulgarian and Hungarian markets and plans to supply Germany.
The B2C segment now accounts for 60% of Terra Food’s export portfolio, and the rest is B2B.
The company is also beginning a major expansion into the Chinese market, which it postponed because of full-scale Russian aggression.
“In March 2022 we were planning a large-scale expansion into China. We postponed that case because of the war, but we will launch that project in the near future. If you want to enter China, you can’t do it on the phone – you have to be present there, work with distributors,” Voytovich said, noting that a feature of the Chinese market is “risk aversion.”
Terra Food (TM “Ferma”, Premialle, “Tulchinka”, “Bila Line”) produces products in Ukraine at five companies.
The enterprises on operations with scrap ferrous metals in January-February this year, reduced the procurement of scrap metal by 70.7% compared to the same period last year – to 152.2 thousand tons from 520.4 thousand tons.
As reported in the operational information of the Ukrainian Association of Secondary Metals (UAVtormet) on Friday, the export of scrap metal during this period amounted to 24.8 thousand tons compared to 7.1 thousand tons in January-February 2022 (an increase of 3.5 times). In this case, the import of scrap was 0.04 thousand tons, whereas in the first two months of last year it was 0.1 thousand tons.
Scrap supplies to the country’s metal companies in January-February 2023 decreased by 75.3% compared to January-February 2022 – to 120.2 thousand tons from 488.5 thousand tons.
As of March 1, 2023, the level of scrap metal stock at metal companies in Ukraine was estimated at 15-20 thousand tons.
As reported earlier by UAVtormet, Ukraine in 2022, reduced the procurement of scrap metal by 75.9% compared to the previous year – up to 996.7 thousand tons from 4.136 million tons. The export of scrap metal last year was 53.6 thousand tons, which is 11.5 times less than in 2021 (615.7 thousand tons). At the same time the import of scrap was 1.8 thousand tons, compared to 23 thousand tons in 2021.
Scrap supplies to steel companies in the country last year decreased by 73% compared to 2021 – to 895.7 thousand tons from 3 million 323.4 thousand tons.
“UAVtormet predicts a decrease in the procurement of scrap ferrous metals to 850 – 880 thousand tons this year. In addition, it is projected that in 2023 the supply of scrap metal to metal companies in the country will be reduced to 720-750 thousand tons. Scrap exports are expected to amount to 80-120 thousand tons. Steel production in 2023 will be 3.6-3.7 million tons.
