Ukrainian honey producer BEEHIVE (part of the EFI Group) is considering opening production facilities in Europe due to the European Union’s reinstatement of import duties on honey, which has led to the company losing ground in the European retail market, said BEEHIVE General Manager Semen Gagarin.
“When the 17.3% tariff was reinstated, we didn’t expect it. At one point, our margin dropped by 20% at the base level, and we started getting pushed out of retail chains—we were left with only 10–15% of the list of retailers we had previously. For us, this was a real ‘cold shower,’” he said at the Forbes Ukraina Exporters Summit.
According to Gagarin, entering complex markets, particularly the British Morrisons chain or the German REWE, requires significant preparation. He emphasized that for Ukrainian honey to make it onto the chain’s shelves, the manufacturer had to offer extreme terms. Specifically, in Germany, the company was forced to provide a “55% margin for the chain” to have a chance of gaining entry.
The general manager explained that BEEHIVE used a “top-down” pricing model in the EU, taking into account competitors’ pricing policies. Under this model, if the product’s cost price is EUR1, the shipping price to the EU must be EUR1.5, and the final shelf price for the consumer will reach around EUR2.5.
“We always work based on the shelf price and the competitor’s price: if their price is EUR3, we need to be a little cheaper to give the buyer a reason to vote for us with their money,” he said.
Assessing the competitive environment, Gagarin noted that Ukrainian producers have to compete with European family-owned companies that have a 150-year history. Since honey is largely a commodity, unique taste or a price advantage become key success factors. To ensure stable expansion, he advised his colleagues to first capture the maximum share of the local Ukrainian market in order to have the financial cushion needed for costly investments in marketing and product listings abroad.
Currently, the company sees two paths forward: either wait for Ukraine’s full EU membership, which would eliminate customs barriers, or localize production directly in Europe.
“Exporting is expensive, exporting takes time, and exporting is complicated. But it’s doable if you have a ‘margin buffer,’ are ready to invest in trading houses, and hire ‘native speakers’ who will communicate with clients in their own language,” Gagarin concluded.
EFI Group (Effective Investment Technologies), founded in 2007, implements business projects in Ukraine. Its investment areas include healthcare and medtech, the paper, food, and woodworking industries, and the supply of agricultural products. Most of the group’s assets are export-oriented and hold international FSC, IFS, and BRC certifications.
The company’s businesses include Feednova, a producer of animal fats and feed additives; the “Beehive” honey production plant; the “Medical Star” honey retail chain, the Zhytomyr Cardboard Plant, the cardboard packaging manufacturer “Sem Ecopack,” the timber processor “Forest Technology,” the agricultural products supplier “Efi Agro,” and the online medical hub Doc.ua.
In the first 10 months of 2025, Ukraine exported 36,400 tons of honey worth over $84 million, with more than 70% going to European Union countries, Deputy Minister of Economy, Environment, and Agriculture Taras Vysotsky said during a forum on the European integration of Ukraine’s honey sector.
He noted that Ukraine is traditionally among the top five global honey exporters, continuing to develop beekeeping even in the difficult conditions of war.
“Ukraine is one of the leaders in honey exports to the EU. This testifies to the high quality, trustworthiness, and competitiveness of our products. The development of digital tools, modernization of production, and strengthening of quality control are gradually creating conditions for scaling exports not only to the EU but also to the markets of Asia and the Middle East,” he wrote on Facebook.
At the same time, Vysotsky stressed that Ukraine should ensure full compliance with EU standards and improve production traceability: clearly record where the honey comes from, which apiaries produced it, and how its quality was checked. This approach will open up new and long-term market opportunities for Ukrainian beekeepers.
According to Vysotsky, there are currently 62,697 apiaries and over 2.84 million bee colonies in the Apiary Passport Register.
“According to experts, integration into the EU market could increase Ukrainian honey exports by 25-30% in the next three years. Our task is to do everything possible to make this forecast a reality,” the deputy minister concluded.
In 2024, Ukraine entered the TOP 3 global leaders in honey exports and ranked third with 85.8 thousand tons, according to the Ukrainian Agribusiness Club (UABC).
Analysts noted that China and India ranked first and second among the world’s top five honey exporters last year, with 169,600 tons and 94,800 tons, respectively. Argentina (78,100 tons) and Vietnam (48,200 tons) ranked fourth and fifth.
“Honey is probably one of the few components of Ukrainian agricultural exports that has not been affected by the blockade of seaports by Russian troops, as its main consumers are European countries. Previously, the duty-free quotas for this product, which were allocated under the Association Agreement with the EU, were exhausted by Ukrainian exporters in a matter of days — sometimes as early as January 4. After the European Union abolished duties and fees on Ukrainian exports, Ukrainian beekeepers had profitable export opportunities,” the experts explained.
According to their information, the largest buyers of Ukrainian honey in 2024 were Germany (18.9 thousand tons), the United States (12.1 thousand tons), Poland (9.7 thousand tons), France (9.6 thousand tons), and Belgium (7.1 thousand tons). In addition, Ukrainian honey was present in other markets, namely Turkey, Great Britain, Japan, Switzerland, Canada, Qatar, Jordan, etc.
However, in 2025, the EU reintroduced quotas on Ukrainian honey, creating additional barriers to exports.
“Although the quotas are significantly higher than before, they still do not cover Ukraine’s entire export potential. At the same time, this is an important step that helps Ukrainian producers remain competitive in the European market, which remains key for the sale of Ukrainian honey,” the UCA concluded.
Bulgaria’s Minister of Agriculture and Food Georgi Takhov asked the European Commission to take safeguard measures against honey imports from Ukraine at a meeting of the EU Agriculture and Fisheries Council, and his request was supported by a representative of Romania, the Bulgarian Ministry of Agriculture reported.
According to Takhov, imports of Ukrainian honey make it difficult to sell local products. The fact is that significant volumes of Ukrainian honey entering the European market at very low prices put a lot of pressure on Bulgarian honey prices.
“In addition to the many challenges facing the industry, over the past three years it has also faced competition from imports from Ukraine. The volume of honey imported from Ukraine to our country from January to October 2024 increased by more than 30% compared to the same period last year,” Takhov emphasized and added that the high level of imports from Ukraine puts Bulgarian producers in a difficult situation.
At a press conference following the meeting of EU agriculture ministers, Hungarian Agriculture Minister Istvan Nagy explained that Bulgaria and Romania demanded safeguard measures for imports of honey from Ukraine to the European Union, as the duty-free quota set in the autonomous trade liberalization has been exhausted, and “the duty creates problems in domestic markets burdened by imports.”
“The measure – the so-called ATM regulation – has been exhausted, but the amount of honey coming from Ukraine is still subject to duty, which also creates problems in domestic markets that are burdened by imports,” the Hungarian Ministry of Agriculture quoted him as saying.
Nagy emphasized that effective measures should be taken to prevent counterfeit honey from entering the EU market, for example, by labeling and separating natural and non-natural honey. He also believes that it is necessary to compensate for the “emerging competitive disadvantages” and to further support the beekeeping sector.
As reported, on August 20, the European Commission imposed tariff quotas on Ukrainian honey due to the excess of quota-free volumes of its supplies to the European market. Imports of honey from Ukraine from the beginning of 2024 to August exceeded the quota of 44.418 thousand tons. Additional imports are subject to most favored nation (MFN) duties. In particular, a new tariff quota will be introduced from January 1, 2025, until June 5, 2025, which corresponds to 5/12 of the threshold set for the emergency braking. For honey, the new quota will amount to 18,507 tons.
From June 2, 2024 to June 5, 2025, the European Commission introduced quotas for the supply of eggs and sugar to the European Union. For eggs, the new quota is set at 9,662 thousand tons, and for sugar – at 109,44 thousand tons.
On May 13, 2024, the Council of the European Union approved the extension of temporary trade liberalization measures for Ukraine for another year, until June 5, 2025. At the same time, it was envisaged to apply an emergency braking mechanism for particularly sensitive agricultural products, including sugar, eggs, poultry, oats, corn, honey, and cereals, in case imports of these products in 2024 exceed the average volumes recorded in the second half of 2021 and during 2022 and 2023. Similar emergency braking measures may be applied in 2025 if, in the period from January 1 to June 5, 2025, the volume of Ukrainian exports exceeds 5/12 of the quota set for 2024.
According to Art. 4(7) of the Regulation on autonomous trade measures applicable to Ukrainian products, Ukraine will be able to supply to the EU from June 6, 2024 to June 5, 2025 without paying any duty 57,101 thousand tons of poultry meat, 9,662 thousand tons of eggs, 109,439 thousand tons of sugar, 18,507 thousand tons of honey, 4.648 million tons of corn, 1,017 thousand tons of oats, 8,603 thousand tons of cereals.
In 2023, Ukraine exported 45.8 thousand tons of honey to the European Union, with 28% of imports of this product from Ukraine, said Olena Dadus, Deputy Director of the Agrarian Development Department of the Ministry of Agrarian Policy and Food.
“The markets of the European Union are key for honey exports, as Ukraine is the second largest exporter of honey to the EU, accounting for 28% of all imports of this product by the bloc. According to the Register of Export Capacities, about 72 Ukrainian enterprises are engaged in the supply of honey abroad,” the press service of the Ministry of Agrarian Policy and Food quoted her as saying at the Honey Forum ”European Integration of the Ukrainian Honey Industry: Challenges and Opportunities.”
According to the State Customs Service and the State Statistics Committee, honey exports in 2023 amounted to 55.4 thousand tons worth $121.4 million, including 45.8 thousand tons (93.6% of total exports) worth $94.9 million. At the same time, in the first half of 2024, honey exports to the EU amounted to 40.6 thousand tons worth $70.7 million.
The Ministry of Agrarian Policy recalled that the main countries of honey export in 2023 were the European Union (Germany, Poland, Spain, France, Belgium, Romania, Italy, Hungary, Greece) and the United States.
As reported, as part of Ukraine’s association with the European Union, Ukrainian companies were entitled to supply 18.507 thousand tons of honey to the EU market free of duty starting June 5, 2024. After this volume was exhausted, the EU resumed quotas on August 21. From January 1, 2025, and until June 5, 2025, a new tariff quota will be introduced, which corresponds to 5/12 of the threshold set for the emergency braking.
In January-September 2024, Ukraine exported 64.913 thousand tons of honey for $124.817 million, which is 1.7 times and 44.3% more than in the same period of 2023, respectively.
According to statistics released by the State Customs Service (SCS), Germany became the largest buyer of Ukrainian honey, purchasing 22.13% of total exports worth $27.627 million in January-September 2024.
The United States and France accounted for 16.1% and 11.7% of supplies, for which these countries paid $20.139 million and $14.63 million, respectively.
A year earlier, the top three buyers of Ukrainian honey were Germany with a share of 24.9%, Poland and France with 16.0% and 7.32%, respectively. Ukraine earned $21.5 million, $13.88 million, and $6.332 million from the sale of honey to them, respectively.
In January-September 2024, Ukraine increased honey imports by 36.1% to 200 tons, for which it paid $105 thousand. Its suppliers were Poland and Bosnia and Herzegovina, which supplied 75 tons (37.5%) each, as well as Romania, which accounted for 22% of supplies with 44 tons.
A year earlier, Ukraine imported 122 tons of honey exclusively from Poland.
As reported, Ukraine has been among the world’s top five honey exporters for several years. In 2023, Ukraine ranked fourth among the traditional world leaders in honey exports with 55.4 thousand tons. In this ranking, it is ahead of China with 152.6 thousand tons, India with 98.7 thousand tons, Argentina with 68.9 thousand tons, and Brazil with 28.5 thousand tons of honey.
