Ukraine’s sugar industry is adjusting to market challenges by turning its focus to the Middle East and North Africa (MENA). With the European market constrained by quotas, nearly 90% of the nation’s sugar exports for the 2024/25 marketing year are now heading to these regions. The strategic move is seen as a necessary pivot, ensuring Ukraine’s position as a global player in the sugar trade.
The change was highlighted by Yana Kavushevska, Head of the National Association of Sugar Producers, Ukrtsukor, during a recent meeting at the Ministry of Agrarian Policy and Food. This shift in trade routes comes at a time when the country’s agricultural sector faces mounting pressures and rising global competition.
Seizing Opportunities in the Middle East and North Africa
As Ukraine finds itself sidelined by European quotas, it’s turning its attention to emerging markets in the Middle East and North Africa. These regions now account for a significant portion of Ukraine’s sugar exports. In fact, of the 500,000 tonnes of sugar expected to be shipped out in the 2024/25 marketing year, almost 90% will be destined for the MENA region.
The MENA market is proving to be a vital alternative for Ukraine, which traditionally relied on the European Union for much of its sugar exports. However, the EU has imposed strict quotas on sugar imports, limiting Ukraine’s ability to access its key markets.
So, what does this mean for Ukrainian producers? It opens doors to new possibilities in a rapidly growing market with a strong demand for high-quality food products. Countries like Türkiye, Libya, Lebanon, Somalia, Jordan, and Cameroon are leading the way in imports. Ukrainian sugar producers see this as a major opportunity to expand their export footprint in these dynamic regions.
The Future of Ukrainian Sugar Exports
Ukrainian officials are optimistic about the future of sugar exports. Minister of Agrarian Policy and Food, Vitaliy Koval, emphasized the potential for growth in these emerging markets. “We have real opportunities right now – and it’s crucial to seize them,” he said. Koval pointed out that Ukraine currently controls just a small 0.2% share of the global sugar market. Yet, with global demand for quality food products increasing, Ukraine has long proven itself to be a reliable supplier.
Looking ahead, the Ukrainian government aims to make sugar exports more systematic and sustainable. The Ministry is working closely with sugar producers to ensure that they have the resources and support to tap into these new markets effectively. One key strategy is the establishment of trade hubs in key regions, which will help streamline the export process and bolster Ukraine’s presence in international markets.
At the heart of these efforts is the goal to make Ukrainian sugar a staple in the global food supply chain. The country’s sugar producers, once reliant on European markets, now have the chance to build more diversified export networks. This strategic pivot is expected to help stabilize the sugar industry and ensure its growth despite external challenges.
Ukrainian Sugar Producers: Looking Beyond the Horizon
While the focus on MENA is critical in the short term, Ukrainian sugar producers are also looking beyond these regions. There is an emerging interest in expanding into new territories where demand for high-quality sugar is on the rise. The Ukrainian government is keen to support this expansion, recognizing that fostering international trade relationships is key to securing long-term growth for the sector.
As the global food industry shifts, Ukraine’s role as a supplier of quality food products will only become more important. With an eye on increasing export volumes, the nation is positioning itself to play a larger role in the global sugar market. Through innovative strategies, partnerships, and government backing, Ukraine’s sugar industry is set for a new chapter—one that capitalizes on the growing demand from the Middle East, North Africa, and beyond.
