Ukraine is fully supplied with sugar

 

https://agrotorg.net/

In the current 2021/2022 financial year (September 1, 2021 - August 31, 2022), Ukraine produced 1,450,000 tonnes of sugar, or 130.5% of the production of the previous financial year. Sugar was produced by 33 sugar factories.

According to the sugar supply and demand balance calculated by the Ministry of Agrarian Policy and Food of Ukraine, the transitional balance at the beginning of the 2021/2022 marketing year is estimated at 332,000 tonnes, which corresponds to the three-month demand of the domestic market (the optimal reserve is the two-month demand of the domestic market).

The sugar supply in the current marketing year amounts to 1.8 million tonnes, which is quite enough for:

  • provision of the domestic market, the volume of which is estimated at 1.210 million tonnes (based on the consumption of 28.9 kg/year per person);
  • creation of export potential in the amount of 120 thousand tonnes (of which 70 thousand tonnes of sugar and 50 thousand tonnes of sugar-containing products);
  • the formation of significant reserves for the beginning of the 2022/2023 marketing year in the amount of 470 thousand tonnes, which corresponds to almost five months of domestic consumption.

As for exports, 73,000 tonnes of sugar, including sugar-containing products, were exported over ten months of the current marketing year.

According to operational information, in 2022 sugar beets were planted on the area of ​​180.4 thousand hectares.

With a forecast yield of 430-440 t/ha, the gross harvest of sugar beets (under favorable weather conditions) is forecasted at the level of 7,830 million tonnes, from which, with a sugar yield of 13.5–14%, about 1,080 million tonnes of sugar can be produced.

According to «Ukrsugar» Association, the most powerful 23 sugar factories plan to produce sugar from September 1, 2022.

Taking into account the transitional balances as of September 1, 2022, sugar resources for the period of the next 2022/2023 marketing year (September 1, 2022 - August 31, 2023):

  • will fully meet the needs of the domestic market, which is forecasted at 1 million 128 thousand tonnes, of which 1 million 68 thousand tonnes are for consumption by the population),
  • the export potential in the 2022/2023 marketing year is estimated at 100,000 tonnes, of which 50,000 tonnes are sugar, 50,000 tonnes are sugar products;
  • transitional balances on September 1, 2023, according to forecasted calculations, are expected in the amount of 370 thousand tonnes — correspond to almost four months of domestic consumption.

Since there is a sugar surplus in Ukraine, there are no plans to set any export restrictions.

Resolution No. 549 of the Cabinet of Ministers of Ukraine as of May 3, 2022 made further amendments to Annexes 1 and 5 of Resolution No. 1424 of December 29, 2021 «On approval of lists of goods subject licensing for export and import and quotas for 2022», in particular :

  • zero sugar quota was abolished;
  • sugar export licensing regime was introduced.

Starting in March 2022, the Ministry of Economy simplified and accelerated the process of licensing the export of goods, including sugar, namely:

  • a significantly reduced list of documents is provided,
  • documents can be submitted to the Ministry of Economy by means of electronic communication;
  • until the termination or abolition of martial law in Ukraine, the fee for issuing a license for export (import) of goods will not be paid.

470