In September-June of 2011/12 marketing year Ukraine has exported 117.9 thousand tons of sugar, which is unprecedented figure of volume of the last decade. The lion's share of sugar export accounts for spring-summer period, during which 90% of this amount was delivered to foreign markets.

Despite the pessimism of market participants about the prospects for sugar exports in the beginning of the season, a favorable global pricing environment and lowering of prices in Ukraine caused by the internal balance surplus, allowed to recover Ukraine's status as a net exporter of sugar in 2012. 

"The tendency of recovery sugar exports from Ukraine are partly forced by falling of domestic prices (according to UCAB experts, as of July 12 the wholesale price for sugar in Ukraine was about 625 USD/t while at the London Stock Exchange - 650.8 USD/t) and partly is a logical result of the development of beet-sugar complex in recent years. After all, Ukraine has all the conditions to produce competitive on the world market sugar, ranging from relatively favorable for growing sugar beets climatic conditions and the presence of advanced companies that continuously invest in the improvement of the efficiency of sugar beet and sugar production. Also, the adjustment of export supply is an important factor in the alignment of internal balance that allows to "fix" fluctuations in the domestic production," - UCAB expert of Agrarian Markets Taras Vysotsky says.

According to the forecasts of the Association "Ukrainian Agribusiness Club", in the next marketing year about 1.8 million tons of beet sugar will be produced, which, together with the significant carry-overstocks, will be sufficient to meet fully the domestic demand without need to import raw sugar. Also, the production output will allow to maintain a presence in the foreign markets and to provide supplies to countries that import Ukrainian sugar.

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UCAB Press Office

Tetiana Kotyk

The Association "Ukrainian Agribusiness Club" (UCAB) www.agribusiness.kiev.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.