Retail prices for sugar in Ukraine have dropped significantly and now amount to 26.5-27.5 UAH/kg. This trend is due more to difficulties in exporting than to an increase in domestic sugar stocks. This is reported in an analytical briefing prepared by the agricultural cooperative «FUAC», created within the framework of the UAC.
«During August, Ukraine exported only 3-4 thousand tons of sugar, which is a critically low figure compared to the 100 thousand tons exported two months ago. The Ukrainian sugar market is facing difficulties as we are now fully focused on domestic consumer demand», — reports FUAC.
It is expected that as a result of increasing domestic production, the sugar stock in Ukraine will increase in the future. Due to the closure of exports to Europe, Ukrainian producers are forced to look for new markets.
«However, in the new season, Europe will also increase sugar production, which will make it difficult to sell Ukrainian products internationally. Objectively, by January 2025, Ukraine will have to either pay high export duties or wait for the resumption of quotas», analysts note.
Given the current situation, it is expected that prices will be lower in the new season.
«In the conditions of instability on export markets and local surplus, domestic sugar prices will probably remain under pressure», — summarizes FUAC.
Source: Agravery.com
