Main points
- Ukraine is reducing sugar production due to trade restrictions and problems with export logistics, with production expected to decline by 26.3% in 2025–2026.
- Sugar exports decreased by 14.2% in 2024–2025, the main sales markets are Africa and the Middle East, and a further decline to 505 thousand tons is expected.
Sugar beet production / Photo Unsplash
A significant reduction in sugar and sugar beet production is expected in Ukraine. The reason is external trade restrictions and changes in export logistics.
Sugar production is declining
In the 2025-2026 marketing year, Ukraine may produce about 1.3 million tons of sugar, the Ukrainian Agrarian Business Club (UABC) reported. This is 26.3% less than in the previous season and 12.6% below the average for the past five years.
At the same time, farmers significantly reduced the area under sugar beet – to 199 thousand hectares, which is 21.6% less than last year. The main reason for this drop was restrictions on sugar supplies to European Union countries, as well as difficulties with logistics to other markets.
Despite this, the crop's yield increased slightly to 49.3 tons per hectare, which is 2% more than in the previous season. The total gross harvest of beets is forecast at 10.2 million tons.
Exports and consumption are also falling
The decline in production is accompanied by a decline in exports. In the 2024–2025 marketing year, the volume of sugar supplies abroad has already decreased by 14.2% – to 629 thousand tons.
The main markets are Africa and the Middle East, while the European Union's share has decreased to 17%. A further decline in exports is expected in the new season – by about 20%, to 505 thousand tons.
Domestic consumption is also declining. While before the full-scale war, Ukrainians consumed about 1.1 million tons of sugar per year, in the 2025–2026 season this figure may decrease to 0.9 million tons. The main reason is the decrease in population and changes in the structure of demand.
Assistance to farmers in 2026: what support does the government provide during the sowing campaign?
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The Government of Ukraine supports farmers through the “5-7-9” preferential lending program, which allows attracting up to 90 million hryvnias for sowing and other agricultural work.
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Farmers are provided with guarantees from the Partial Credit Guarantee Fund, and an agricultural insurance program is also in place.