There Will Be No Shortage Of Sugar In Ukraine, But It May Rise In Price - UCAB

The Ukrainian Agrarian Business Club association (UCAB) predicts that there will be no shortage of sugar in Ukraine this year, but against the backdrop of growing demand for basic food products, it may rise in price.

The UCAB has said this in a statement, Ukrainian News Agency reports.

The association notes that over the past 5 years, Ukraine's annual fund of sugar consumption is about 1.2 million tons.

At the same time, in the 2020/21 marketing year (MY), Ukraine had certain problems with its own sugar production due to adverse weather conditions, which led to low sugar beet yields and low sugar content.

This was the first year in a long period when Ukraine was forced to import raw sugar cane to provide its population with sugar, since its own production amounted to 1 million tons, which is below the consumption fund.

"The situation is completely different in 2021/22, because during this period, 1.4 million tons of sugar were produced from grown Ukrainian sugar beet, which is by 44% more than in the previous year. The produced sugar is enough to calmly and even with a margin cover Ukraine's annual demand for sugar. And given the fact that part of the population of Ukraine has temporarily gone abroad, the consumption fund has also decreased and, accordingly, the transitional balance is increasing. However, against the backdrop of the war in Ukraine, there is a rush demand for basic foodstuffs. the family is trying to stock up for more than one month, fearing food shortages and possible price increases,” the statement says.

In turn, increased demand can lead to higher prices.

"Ukrainians should not worry about the availability of sugar, because this year Ukraine has produced enough of it. In addition, the sowing of sugar beet is already ending this summer, and as of June 2, 2022, 181,000 hectares have already been sown with sugar beet, which is 80% of the acreage of the previous year. This figure is not final and may be adjusted upwards due to additional sowing and the receipt of information a little later. And in four months, a new season of sugar production will begin in Ukraine to meet the needs of Ukrainians," the statement says.

As Ukrainian News Agency reported, in May, the Cabinet of Ministers canceled zero quotas for the export of sugar and millet.