On May 5, a roundtable discussion was held in Kyiv between UCAB, the National Association of Sugar Producers of Ukraine, the Ukrainian National Agrarian Forum and the French Beet Growers Syndicate (Confédération générale des planteurs de betteraves - CGB), a member of the International Confederation of European Beet Growers (CIBE), which was also attended by experts from the Ukrainian sugar industry business community.

The main purpose of the meeting was to deepen constructive dialogue and cooperation between representatives of the agricultural communities of Ukraine and France, particularly in the sugar industry. The key topics for discussion were the challenges and prospects for the integration of the Ukrainian agricultural sector into the European Union, analysis of the current state of the sugar industry, as well as forecasting the development of the sugar industry in Ukraine and France in 2025/2026 MY.

Firstly, in her presentation, Oleksandra Avramenko, Head of the European Integration Committee, UCAB, emphasized that the Ukrainian agricultural sector is forced to deal with an unprecedented simultaneous combination of challenges: a full-scale Russian invasion and the process of European integration. These two factors simultaneously create an environment in which the sector must adapt, overcome difficulties, and at the same time implement the reforms and standards necessary for EU accession.

"Despite a wide range of institutional, economic and environmental challenges, Ukraine's agricultural sector continues to demonstrate resilience, even if current performance is lower than before the war. Thus, the sown area decreased from 28.4 million hectares in 2021 to 23.2 million hectares in 2024. Agricultural exports in 2024 amounted to $24.7 billion, which is 59.3% of the country's total exports, although it is less than in 2021, when this figure reached $27.7 billion. The value of agricultural production in 2023 amounted to €34.5 billion (in 2021 prices), which is also lower than the peak level of 2021 – €41.6 billion. At the same time, small and medium-sized businesses continue to play a key role: in 2023, their share reached 66.4% of the total value of production in the agricultural and food sectors," Oleksandra Avramenko elaborated. 

In addition, the speaker explained the main benefits for the EU when Ukraine joins the alliance, noting that despite different paths, we have a common goal – a strong, successful Europe.

"The sugar industry of Ukraine has undergone significant transformations since Independence. If in 1992 there were 192 factories in the country producing about 5 million tons of sugar, then in the 2020s their number decreased to 33, and the production volume – to about 1.8 million tons. As of 2024, Ukraine ranks 18th in the world in terms of sugar production. The area under sugar beet also continues to decline: the forecast for 2025 indicates a decrease in the area under crops - to 210 thousand hectares, which is 17% less than the previous year. This is due to both unfavorable weather conditions and economic factors, including the higher profitability of alternative crops. Export restrictions imposed on Ukrainian sugar by the EU also play an important role. At the same time, there is a noticeable increase in sugar exports and a transformation of its directions. If in 2017-2018, when Ukraine exported more than 500 thousand tons, the main export destinations were the countries of Central Asia, then in 2022-2023 these markets were lost for us, and the EU countries became the main export destination. In 2024, with the restoration of sea routes, Ukrainian sugar producers managed to diversify sales, and only 40% of exports from a record 746 thousand tons for the industry were sent to the EU countries, 60% went to the world market – Turkey, Libya, Lebanon, etc. However, the European Union market remains a key strategic direction for Ukrainian sugar, primarily due to its geographical proximity”, – emphasized Yana Kavushevska, Chairman of the National Association of Sugar Producers of Ukraine.

In his turn, Timothé Masson, Economics and International director at CGB, Executive secretary of the World Association of Beet and Cane Growers (WABCG), focused on the key preconditions and reasons that led to the crisis in the French sugar industry. Among the speaker's main points:

• France, along with Germany, is the leading sugar producer in the EU, but domestic consumption is much lower than production. This makes the industry extremely dependent on export markets within the EU and vulnerable to import fluctuations. Increased imports put additional pressure on prices in the European market, as traders focus on the total volume of available products.

• At the same time, if we look at sugar production, one of the key challenges for producers is the implementation of the EU's environmental policy, the Green Deal. Restrictions on the use of plant protection products and fertilizers, as well as increased taxes on pesticides, have a negative impact on yields and lead to higher production costs, which are currently reaching about €3000 per hectare.

• In addition, the production structure in France has its own peculiarities. Unlike countries with large agricultural enterprises, the French sector consists mainly of small, family farms with an average size of only 140 hectares. They have limited resources, a minimum number of employees and, consequently, higher unit costs. All this creates additional challenges for the competitiveness of French sugar on the European market.

"One of the potential ways to reduce tensions in the sugar market, which could be beneficial for all parties - including raw material suppliers such as Ukraine — is to develop cooperation in the bioethanol market. If the EU raises the ethanol content of fuels, it will create significant additional demand. Given that the EU does not already fully meet its own bioethanol needs, Ukraine could become a strategic and reliable partner in this area," summarized Timothé Masson.

During the meeting, business representatives shared their vision of the development of the Ukrainian sugar industry and outlined promising areas of cooperation between the agricultural sectors of Ukraine and France. In particular, Sergiy Kravchuk, CEO and owner of GALS-AGRO, presented the activities of the company, which has been among the top 5 sugar producers in Ukraine for many years. In his speech, he emphasized the high level of innovation and sustainable development of production: Gals Agro's sugar factories are energy profitable – thanks to biogas plants, they generate more “green” energy than they consume from traditional sources. The speaker also drew attention to an economic paradox: the Ukrainian sugar industry buys more inputs (seeds, fertilizers, plant protection products, machinery) from the EU than it receives from sugar exports to European countries. According to him, this requires a rethinking of the trade balance and opens up opportunities for deeper integration and cooperation within the European market.

In his turn, Oleksandr Gavrish, Director of the sugar business of Ukrprominvest-Agro Group (UPI-AGRO), presented a detailed overview of the successful partnership program for sugar beet processing on tolling terms called “Sugar Beet – a Smart Choice”! This initiative has contributed to a significant increase in the number of farmers involved and an increase in the share of partner beets in the total processing volume from 18 to 60%. The speaker also emphasized that deepening cooperation between Ukraine and the European Union, in particular in the development of the free trade area, is critical not only for the economy, welfare of citizens and sustainable development of local communities, but also for strengthening the common front in countering aggression and ensuring Ukraine's victory.

As a result of the roundtable, the participants were able to better understand the specifics of the functioning of the agricultural sectors of Ukraine and France, as well as to develop ideas for effectively combining the potentials of both countries in strategically important areas.

"There is already a strong and stable connection between the agricultural sectors of Ukraine and France today, demonstrating significant potential for expanding cooperation. At the same time, our bilateral trade relations remain quite sensitive, requiring a careful and responsible approach. They must be constantly supported, developed and strengthened in search of balanced, mutually beneficial solutions. It is very important to ensure a harmonious balance in the flows of export and import - in accordance with the interests of both Ukraine and France," said Oleh Khomenko, Director General of UCAB.

"France remains side by side with Ukraine. We need to work on European norms that would help Ukraine move towards the EU and look for solutions that will consist of important components for both sides. We should pay attention to working with bioethanol and look for markets that are less sensitive. We are ready to communicate, discuss and continue an open dialog. Imports of Ukrainian sugar have a significant impact on French producers because the cost is very high. Therefore, we need solutions that will maintain a balance", - summarized Guillaume Gandon, farmer, vice-president of the Confédération générale des planteurs de betteraves (CGB), president of the economic and general affairs at CIBE.

UCAB is grateful to all representatives of Ukrainian and French agribusiness for participating in a constructive dialogue. The exchange of views and willingness to seek balanced and mutually beneficial solutions demonstrated during the roundtable are extremely valuable for further strengthening cooperation, overcoming common challenges and successful integration of the Ukrainian agricultural sector into the European space.