In 2018-2019 MY (September-August) Ukrainian producers exported 409.8 thousand tons of sugar worth $144.3 million, down by almost 27% YoY (564 thousand tons).
In addition, there were some changes in the export destinations.
“In 2018-2019 MY, ended in August, we may note some changes in export destinations. Although Uzbekistan remains the main importer, deliveries to this country have significantly decreased – from 210 to 96 thousand tons. Azerbaijan (74 thousand tons) occupied the second place, in the previous season the country took the third place (43 thousand tons), and Tajikistan became the third (36,000 tons in 2018-2019 MY versus 16,000 tons in 2017-2018 MY, the 9-th place)”, commented Ruslana Yanenko, the Deputy chairman of “Ukrsugar” Association.
She noted that the share of exports to Uzbekistan in the total export volume decreased from 37% in 2017-2018 MY to 24% in 2018-2019 MY. She suggested that the reasons for the reduced deliveries were the changes in tax policy of Uzbekistan, first of all, and the large number of logistical problems that occurred in the season.
“The increase in exports to Israel and Libya, which occupied the seventh and the eighth positions in the rating of importers, and Ukrainian sugar producers’ efforts to diversify the export directions as much as possible should be noted”, summarized Ruslana Yanenko.
Next season the expert forecasts an expected rise in London Stock Exchange prices, which will certainly affect the domestic market. Another driving factor of the rise in world prices is the global deficit and the decline in sugar production of Ukraine.
“Next season Russia can become a serious competitor, which expects sugar overproduction and, accordingly, the struggle for Central Asia export markets will be more harder”, explained Ruslana Yanenko.
According to the analytical department of “Ukrsugar” Association, in 2019-2020 MY Ukraine will export approximately 300 thousand tons of sugar. (Ukrsugar/Business World Magazine)