Ukraine is experiencing a significant decline in sugar selling prices, which currently stand at 26.5-27.5 UAH/kg. This trend is caused not so much by the growth of sugar stocks in the country as by difficulties with exports.

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

"During August, Ukraine has exported only 3,000-4,000 tons of sugar, which is a critically small figure compared to the 100,000 tons exported two months ago. The Ukrainian sugar market is facing difficulties, as nowadays we are completely focused on the domestic consumer demand," the analytical department of the FUAC said.

In the future, we expect increase of sugar stocks in Ukraine, as the domestic production will. Against the background of closed exports to Europe, Ukrainian producers need to look for new markets.

"However, in the new season, Europe will also increase sugar production, which will complicate the sale of Ukrainian products internationally. Objectively, by January 2025, Ukraine will either have to pay high export duties or wait for the quotas to be zeroed," analysts said.

Given the current situation, we can expect prices to be low in the new season.

"Given the instability on export markets and local surplus, domestic sugar prices are likely to remain under pressure," the FUAC summarized.