Sugar Beet and Sugar Production in Ukraine Set to Decline Due to External Trade Restrictions

In Ukraine, under the influence of external trade restrictions, a sharp decrease in the production of sugar beet and sugar is forecasted. This was reported by the Ukrainian Club of Agrarian Business (UCAB), which presented its forecasts regarding the agricultural sector for the upcoming years.

According to UCAB's projections, in the 2025-26 marketing year, considering this year's harvest, Ukraine will be able to produce about 1.3 million tons of sugar. This figure represents a 26.3% decrease compared to the previous marketing year and is 12.6% lower than the average over the last five years. Such a decline in production indicates serious challenges facing the Ukrainian agricultural sector.

Moreover, the area allocated for sugar beet cultivation is expected to decrease by 21.6% to 199 thousand hectares in the 2025-26 marketing year compared to the previous marketing year. This indicates that producers are forced to reduce planting areas due to new challenges in the market.

The representative of UCAB stated, “The main reason for the reduction in production is the introduction of quotas on sugar supplies to EU countries and the complicated logistics to third markets.” Despite this, the yield of sugar beet has increased to 49.3 tons per hectare, which is 2% higher than in the previous season. The total harvest of sugar beet is expected to reach 10.2 million tons.

Following the introduction of quotas on sugar supplies to EU countries, exports in the 2024-25 marketing year decreased by 14.2% to 629 thousand tons. The main export destinations became African countries (32%) and the Middle East (29%), while the share of the EU in total exports was only 17%. UCAB predicts that in the 2025-26 marketing year, sugar exports from Ukraine will decrease further by 20% to 505 thousand tons.

Additionally, if prior to the full-scale war, domestic sugar consumption in Ukraine was 1.1 million tons, it is projected to decrease to 0.9 million tons in the 2025-26 marketing year. The primary reason for this reduction is the declining population of Ukraine, which directly affects consumer demand.

In December 2025, the European Association of Sugar Producers and the International Confederation of European Sugar Beet Producers urged European institutions to urgently respond to the critical situation in the EU sugar market. They called for the introduction of new restrictions on the import of raw sugar for processing industries, particularly from Ukraine and MERCOSUR countries.

The European Commission planned to sharply reduce imports of Ukrainian sugar after EU producers complained that large shipments had caused a collapse in sugar prices. EU farmers argued that imports from Ukraine undermined local supplies, leading to price reductions and making it difficult for them to secure sales. This situation has sparked serious disputes between Ukrainian producers and EU countries.

As of July 2, 2024, tariffs were imposed on Ukrainian sugar supplied beyond established quotas, further complicating the situation for Ukrainian exporters. Under these conditions, the agricultural sector of Ukraine faces new challenges that require urgent responses from the government and agricultural associations.