Domestic prices for Ukrainian sugar continue to fall due to trade restrictions with the EU. Analysts predict that wholesale prices from factories may drop to 18-19 UAH/kg.

This issue was discussed during the analytical briefing of the First Ukrainian Agricultural Cooperative (FUAC), created within the UAC.

“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 us to significantly unload stocks. Due to trade restrictions with the EU, which will last until 2025, Ukraine is facing difficulties in exporting sugar,” the FUAC noted.

This trend is likely to continue in the coming months.

“Some factories in Ukraine have already started to reduce prices from the previous 21.50-22 UAH/kg to 21 UAH/kg. It is predicted that in September-October, prices may fall to 18-19 UAH/kg due to the oversaturation of the domestic market,” the analysts said.

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 complicated by large-scale fires that damaged 5 to 8% of the area under grain. This has led to a significant increase in the cost of sugar on world markets,” the FUAC mentioned.