Brussels (Brussels Morning Newspaper) – Ukrainian sugar imports are being cut sharply by the European Commission after EU producers complained that large shipments have pushed down sugar prices, according to three sources cited by Reuters.
EU sugar imports from Ukraine are part of a much larger dilemma it has faced in recent years.
In response to Russia’s invasion, Brussels initially provided free access to its agricultural markets, but protests from EU farmers have forced it to curtail support.
EU farmers have asserted imports from Ukraine have undercut local supplies, lowering costs and making it more challenging for them to secure sales.
As reported by Reuters, the intention to reduce sugar imports had been presented by EU’s agriculture commissioner Christophe Hansen when he spoke with the leaders of French farm unions and industry delegates at the Paris farm show in late February.
Sources who attended the meeting said Hansen did not specify by how much imports could be cut, but he said they would be “well below” current levels, they said. He also stated he would tackle other imports from Ukraine, such as grains, without giving details, two sources said. In a comment, the Commission acknowledged that EU farmers and member states have concerns about certain agricultural imports.
How has the EU sugar market changed since 2022?
The European Union removed duties on Ukrainian farm goods after Russia’s invasion in 2022. The action led to a sharp peak in cheaper Ukrainian sugar imports, exceeding 400,000 tons in the 2022/23 season and over 500,000 tons in 2023/24, more than three times the pre-war quota of 20,000 tons. European sugar costs shed more than 30% last year, the newest EU data displayed.
Complaints from European farmers about unfair competition led the EU to reintroduce an import quota of 262,650 tons in July last year. After the first portion of this quota was used up, the EU stopped sugar imports from Ukraine, which caused Ukraine to redirect its sugar shipments to other nations, particularly to Turkey, as reported by Ukraine’s sugar union, Ukrtsukor.
The second segment of the quota, which allows for the export of 109,440 tons of Ukrainian sugar, began in January; however, Ukraine’s actual exports have been minimal to date. According to EU data, sugar production in the EU has varied between 14.5 and 17.6 million tons annually since 2018, influenced by the sugar beet harvest. Meanwhile, sugar consumption remains stable at approximately 14 million tons, with imports ranging between 2 million and 3 million tons.
