Business news from Ukraine

Business news from Ukraine

Ukrainian sugar factories can produce 2.2 mln tons, but there is lack of sales markets

Ukrainian sugar factories are capable of producing 2.2 million tons of sugar, but processors are currently unable to sell all their products, so they are maintaining production at 1.2-1.3 million tons. However, this can only happen if domestic consumption returns to pre-war levels and new export markets open up, said Yana Kavushevska, head of the National Association of Sugar Producers of Ukraine “Ukrtsukor.”

“If we have 30 factories that can produce sugar, probably 2.2 million, if we had markets where we could sell this sugar steadily and with some profit that satisfies producers, that would be quite good. This is what we can optimally grow and process. The optimal capacity of existing sugar factories is 2.2 million tons,” she said on Ukrainian Radio.

She noted that the main problem for sugar producers now is export markets, as the domestic market will not be able to absorb the entire volume of production.

“We really hope that the domestic market will recover to at least its pre-war level by 2022. That would be 1.2-1.3 million tons,” Kaushevska said.

The expert clarified that before the full-scale invasion, even after the loss of part of the territories in Donetsk, Luhansk regions, and Crimea, domestic sugar consumption in Ukraine amounted to 1.2-1.3 million tons. However, after the start of the full-scale invasion, domestic consumption fell to 900,000 tons. Thanks to the opening of the European market during the autonomous trade measures (2022-2024 – IF-U), sugar producers were able to supply 300,000 tons to Europe.

“We now have restrictions (on sugar supplies to the EU – IF-U), and accordingly, we need to decide where to send these 300,000 tons,” she said.

The head of Ukrtsukor stated that in 2025, Ukrainian farmers reduced the area under sugar beet cultivation to 220,000 hectares, which is 15.4% less than last year’s figures.

According to her, Ukrainian processors were very disappointed with the quotas for sugar supplies to the European Union, which were announced in the spring of 2025 and were planned at 67,000 tons. Currently, this volume has been increased to 107,000 tons of sugar, but in previous years, deliveries to the EU reached 473,000 tons.

The head of the industry association recalled that in 2024, the sugar industry showed record export figures – over 740,000 tons, thanks to which Ukraine received over $420 million.

 

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Czech Chamber of Food Industry calls for halt to expansion of quotas for Ukrainian sugar

The Czech Chamber of Food Industry has expressed concern over the European Union’s plans to significantly expand duty-free import quotas for Ukrainian agricultural products. A press release published on July 15 states that this threatens the Czech sugar industry. According to the Chamber, the quota for duty-free sugar imports from Ukraine to the EU could be increased from the current 20,070 tons to 100,000 tons — five times more. As a result, Czech producers fear a decline in self-sufficiency and a repeat of the situation with the closure of the plant in Hrušovany nad Evšovkou, which was linked to the influx of cheap imported sugar.

The Chamber’s president, Dana Večeržová, said: “If quotas continue to rise, we risk seeing the closure of new enterprises and ineffective investments not only in the sugar industry, but also in other strategic sectors.”

The decline in the Czech Republic’s self-sufficiency in sugar creates dependence on imports and devalues investments. Producers are calling on the government to abandon the quota increase and demand the introduction of restrictive mechanisms (automatic protective measures, price thresholds, and individual quotas) in negotiations with the European Commission.

Poland, Slovakia, Hungary, Bulgaria, and Romania have expressed their support for the Czech position. They signed a joint declaration calling on the European Commission to introduce protective measures for the most vulnerable sectors of the EU — sugar, grain, and meat.

In 2024, the Czech Republic imported 27.9 million kg of sugar from Ukraine (out of a total of 81.1 million kg) worth CZK 461 million. This is several times higher than the 2021 level of 3.7 million kg.

A fivefold increase in quotas for Ukrainian imports to 100,000 tons could seriously weaken the Czech sugar industry, threatening jobs and infrastructure.

 

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Ukraine has determined sugar quotas for EU — Radekhivsky Sugar received largest share

The Ministry of Agrarian Policy and Food has allocated sugar quotas for export to European Union countries, which will remain in effect until August 5, 2025, according to the ministry’s press service.

According to the report, the sugar quota has been distributed among exporters in proportion to their actual exports of this product to EU countries in January-May 2025.

The quotas were allocated to the following companies: TOV “Radehivsky Sugar” — 3,977.6 tons, TOV “Tsukoragroprom” — 1,700.9 tons, TOV “PK ”Zorya Podillya” — 927.6 tons, PJSC “Teofipol Sugar Plant” — 915.1 tons, LLC “Narkevychi Sugar Plant” — 688.8 tons, LLC “Novoorzhytskyi Sugar Plant” — 598.4 tons, LLC “Starokostiantynivtsukor” — 451.6 tons, LLC “Shamraivsky Sugar” — 381.5 tons, LLC “Shepetivka Sugar” — 349.5 tons, LLC “Signet-Center” — 259.4 tons, LLC “Agrocomplex ”Green Valley” — 216.5 tons, Kraievyd LLC — 184.2 tons, Novomyrhorodsky Sugar LLC — 140.7 tons, Prisma-14 LLC — 121.7 tons, and Krasylivsky Sugar Plant PJSC — 94.0 tons.

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Ukraine exported almost 500,000 tons of sugar, with Turkey leading imports

Ukraine has already exported 494,000 tons of sugar in the 2024-2025 marketing year, of which 196,600 tons were exported in January-April 2025, according to the press service of the National Association of Sugar Producers of Ukraine “Ukrtsukor” on Facebook.

According to the report, 90% was destined for the global market, with 10% exported to EU countries.

According to the industry association, Turkey remains the leading buyer of Ukrainian sugar, accounting for 16% of export volumes, followed by Libya (11%) and EU countries (10%).

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Gaisyn plant starts producing sugar from syrup

Haysynskyi Sugar Plant, part of the Ukrprominvest-Agro agricultural holding (UPI-AGRO), has started producing sugar from syrup put into storage during the 2024 production season, the agricultural holding’s press service reports.

“Haysynskyi Sugar Plant is the first in Ukraine to implement a technological scheme for processing sugar syrup,” the agricultural holding emphasized.

According to the report, this year’s syrup production season will last 37 days. During this time, it is planned to produce 26 thousand tons of sugar from 48 thousand tons of syrup.
So far, more than 7 thousand tons of sugar syrup have been processed.

“Ukrprominvest-Agro is engaged in growing crops, producing sugar, flour, meat and dairy farming. The group’s land bank exceeds 116.5 thousand hectares. The agricultural holding is located mainly in regions that have not been invaded by the Russian occupiers.

The group’s sugar business is represented by two sugar factories in Vinnytsia region. The total elevator storage capacity is 120 thousand tons.

Ukrprominvest-Agro comprises Agroprodinvest Group LLC, PJSC Podillya PC, LLC Zorya Podillya PC, LLC Vinnytsia Bakery No. 2, AF Dniproagrolan, AF Ivankivtsi, LLC Mas-Agro, LLC Pravoberezhne, and LLC Progress-NT.

The owner of the agricultural holding since December 2019 is the son of the former President of Ukraine Oleksiy Poroshenko.

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Ukraine exported over 403 thousand tons of sugar in 2024/25 marketing year

From September to February (6 months of the 2024-2025 marketing year), Ukraine exported more than 403.5 thousand tons of sugar, of which 1.6% was sent to the EU countries, the rest to world markets, the press service of the National Association of Sugar Producers of Ukraine “Ukrtsukor” reported.

The industry association noted that exports to the EU resumed in February and amounted to 6,559 tons. The main EU countries where Ukrainian sugar was exported were Bulgaria (72% of the exported volume), Greece (12%) and Italy (12%).

The main export destinations for Ukrainian sugar in the first 6 months of 2024/25 MY were Turkey (18% of total exports), Libya, North Macedonia, Somalia, and Sri Lanka.

As reported, in the production season of 2024, Ukrainian sugar producers produced 1.8 million tons of sugar. The volume of the domestic market in Ukraine is currently estimated at 900 thousand tons per year.

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