The area under sugar beet has increased by almost 20% to 250 thousand hectares during the war, which has become a good diversification option for farmers who have switched from growing grain to this crop, said Yana Kavushevska, acting chairman of the board of the National Association of Sugar Producers Ukrtsukor.
“During the war, the industry demonstrated resilience and became an island of salvation for some farmers who managed to switch from growing grain to sugar beet in time,” she said at Grain Ukraine in Kyiv.
According to Kavushevska, in 2020, 216 thou hectares were planted with sugar beet in Ukraine. However, for two years in a row, the country has been allocating 250 thou hectares for this crop, which indicates an increase of almost 20%. This is due to the areas planted by independent farmers and agricultural companies that have made a conscious choice in favor of sugar beet and saw it as a profit opportunity.
The acting chairman of the board of Ukrtsukor explained the success of the industry by the favorable situation on the world market, where sugar prices have been among the highest since 2006. In addition, it was easier for Ukrainian producers to export sugar than grain.
“There were logistical problems. Of course, sugar producers, like grain producers, are interested in keeping the ports of Greater Odesa open and working properly. But exports by land were also quite active,” she stated.
Another positive factor for the revitalization of the Ukrainian sugar industry, according to the representative of the industry association, is duty-free trade with the EU, which Ukrainian producers have actively used and increased exports.
Speaking about the imposition of restrictions on Ukrainian sugar by the EU, Kavushevska noted that Ukrainian producers have resumed exporting sugar not only to the EU, but also to the Black Sea and West Africa.
“As of May, Ukraine exported 65% of sugar to the European Union, and 35% went to countries where our sugar is also in demand. In fact, in May, Ukraine set a record for monthly sugar exports: within 30 days, we exported 108 thousand tons of sugar,” the representative of the association emphasized.
Ms. Kavushevska also noted that sugar prices are currently being corrected on the global market. She admitted that the financial results for Ukrainian producers may not be as good as before. However, for the third year in a row, sugar beet will remain among the top three most profitable crops for Ukrainian farmers, which is a good alternative to grain.
The head of Ukrtsukr also emphasized the importance of cooperation with specialized European sugar producer associations, pointed out the need to integrate Ukrainian products into the EU and reminded that the industry counts on the support of the state and its trade representatives who will negotiate the revision of autonomous trade measures and the association agreement.
