Since the beginning of the 2024/25 season, sugar factories-members of the National Association of Sugar Producers Ukrtsukor have produced 1.165 million tons of sugar as of November 21, the association’s press service reports.
“Ukrainian sugar factories have already accepted 9 million tons of sugar beet for processing, from which they produced 1.165 million tons of sugar, which is almost equal to the same date last year,” the statement said.
The industry association noted that in the season 2024/2025 MY sugar beet processing in Ukraine is carried out by 29 sugar factories, 28 of which are members of the association.
At the same time, Ukraine has almost completed the harvesting of sugar beet, which was harvested in the amount of 11.9 million tons from an area of 251.2 thousand hectares with an average yield of 47.6 tons per hectare.
As reported by Interfax-Ukraine, citing data from the Ukrtsukor association, 37 sugar factories operated in Ukraine in 2023. One plant in Kharkiv region, which is located in the de-occupied territory, was not ready to enter the processing season, as farmers in the region did not sow sugar beets.
In the third quarter of 2024, Astarta Agro Holding sold 77.87 thousand tons of sugar, which is 6% less than in the same period a year earlier, and in January-September, sugar sales increased by 43% to 289.32 thousand tons.
According to the company’s announcement on the Warsaw Stock Exchange, the average sugar price in the third quarter decreased by 10% compared to the same period last year and by 10% over the first nine months.
In the third quarter, Astarta’s wheat sales increased by 475% to 128.8 thousand tons, up from 22.41 thousand tons a year earlier. Over the nine months, corn sales increased by 202% to 209.15 thousand tons. The average price of wheat in the third quarter was up 44% year-on-year and 37% over the first nine months of the year.
At the same time, corn sales volumes decreased by 95% to 1,787 thsd tonnes, while its selling price fell by 22%. Over the first nine months, corn sales increased by 7% to 339.72 thousand tons, while prices were 8% lower than last year.
“Astarta increased its sales of sunflower seeds by 112% to 7.063 thousand tons, while its selling price increased by 62%. In the first nine months of the year, sunflower sales decreased by 57% to 27.129 thsd tonnes, while prices were 5% higher than last year.
Sales of rapeseed in the third quarter increased by 196% to 34.91 thsd tonnes, while prices increased by 55%. Sales volumes for the first nine months of 2024 increased by 272% year-on-year to 55.231 thsd tonnes, and prices were 32% higher.
Sales volumes of soybean oil in the second quarter decreased by -13% to 8.217 thsd tonnes, while prices were 19% higher. The agricultural holding increased its sales volumes by 11% in the first nine months of 2024 compared to the same period last year – up to 35,359 thousand tons, but prices were 7% lower on average.
In addition, in the third quarter, Astarta reduced sales of soybean flour by 1% to 29,313 thousand tons, while prices were 4% lower than last year. In the first nine months of 2024, prices were 6% lower compared to the same period last year.
The agricultural holding’s sales of milk in the third quarter increased by 1% to 25.878 thousand tons, while the price of the products increased by 32%. Sales volumes for the first nine months of 2024 increased by 4% to 85.891 thousand tons, prices – by 24%.
In 2023, Astarta Agro Holding, the largest sugar producer in Ukraine, reduced its net profit by 5.0% to EUR 61.9 million, and its EBITDA decreased by 6.1% to EUR 145.77 million, while revenue increased by 21.3% to EUR 618.93 million.
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.
Ukraine exported 691.8 thsd tonnes of sugar in 2023/2024 marketing year (MY, July 2023 – June 2024), of which 77% was shipped to the European Union, the press service of the National Association of Sugar Producers of Ukraine “Ukrtsukor” reports.
According to the report, the main importing countries of Ukrainian sugar to the EU were Italy, whose share in the supply of Ukrainian sugar to the EU was 19%, Bulgaria (18%) and Hungary (14%).
In addition, the top three buyers of Ukrainian sugar outside the EU were Cameroon, which accounted for 17% of supplies, Libya (15%) and Turkey (11%).
In the 2024/2025 season, Ukraine will produce 1.6 million tons of sugar against the domestic market demand of 900 thousand tons, which is one of the best indicators for the last five years, said Taras Vysotskyi, First Deputy Minister of Agrarian Policy and Food, during the conference “Drought and War: What will be the harvest this year and how will it affect the economy”.
“It should be noted that we will once again have quite significant sugar production. Farmers planted less sugar beet than in the last record year. However, at the level of 1.6 million tons, with domestic consumption of 900 thousand tons, this is a good indicator. It is one of the best in the last five years,” he said.
Vysotsky emphasized that the sugar produced will be enough for the domestic market, and there is a significant potential for export. He confirmed that the quota for Ukrainian sugar to be supplied to the EU market has been exhausted. However, the production figures for the current sugar season in Ukraine are very good.
Astarta Agro-Industrial Holding, the largest sugar producer in Ukraine, started sugar beet processing at a plant in Vinnytsia region on August 24, with a total of five plants of the agricultural group operating this season, the press service of the agricultural holding reported on its Facebook page.
According to the report, two plants in Poltava region are scheduled to be launched at the end of the week, and two more in September.
“The season has started successfully. The first plant is now online and operating at full capacity. We will soon start shipping the first batches of high-quality sugar to Ukrainian consumers. In general, our investments in the sugar segment were aimed at improving the energy efficiency of the plants. We also focused on improving staff motivation and product quality,” said Igor Rylyk, Director of Agricultural Processing at Astarta.
At the same time, the agricultural enterprises of the agro-industrial holding, which are the main suppliers of raw materials for Astarta’s sugar factories, continue harvesting sugar beet, the total area of which this year is 38 thousand hectares.
Currently, the holding’s plants are working on their own raw materials, and starting from September 1, sugar beet will be supplied for processing by farms with which Astarta cooperates on a regular basis, the agricultural holding said.
In 2023, Astarta Agricultural Holding grew 39 thousand tons of sugar beet, which is 20% more than a year earlier, thanks to a record yield of 58 tons/ha against 56 tons/ha in 2022, the company’s annual report said on Wednesday evening.
According to the agricultural holding, the record high sugar beet harvest extended the processing period until the end of January 2024. In total, the sugar production campaign in 2023 lasted 130 days, compared to 111 days a year earlier.
“In the 2023-2024 marketing year, Astarta increased sugar production by 34% year-on-year to 377 thousand tons. At the same time, the volume of sugar beet processing in 2023 increased by 37% compared to the same period last year and reached 2.7 million tons. The market share remained unchanged at 21% in 2023.
In 2023, Astarta, the largest sugar producer in Ukraine, reduced its net profit by 5.0% to EUR 61.9 million, and its EBITDA decreased by 6.1% to EUR 145.77 million, while revenue increased by 21.3% to EUR 618.93 million.
