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French Sugar Producers Call for Re-Export of Ukrainian Sugar Amid Market Concerns

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Mahnoor Jehangir
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French Sugar Producers Call for Re-Export of Ukrainian Sugar Amid Market Concerns

In a move that underscores the intricacies of international trade and agricultural policies, French sugar-beet producers are making calls to re-export sugar imported from Ukraine outside European borders. This demand emerges amidst concerns about the potential impact on the European sugar market, which could be significantly influenced by the surge of Ukrainian sugar.

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The Impact on the European Market

The General Confederation of French Beet Growers (CGB) indicated that Ukrainian sugar imports to the bloc could reach a staggering 700,000 to 800,000 tons in the 2023-2024 season. This influx, they argue, could potentially disrupt the local market and adversely affect domestic producers. Despite the uptick in Ukrainian sugar imports, EU sugar prices have remained high, owing to a global shortfall of the sweetener. The price of domestic white sugar is currently over €800 euros ($878) per ton, marking the highest in over a decade.

Disruptions and Adaptations

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The situation is further complicated by geopolitical factors. Russia's invasion of Ukraine has disrupted operations at its Black Sea ports, leading grain producers to increasingly depend on rail, road, and river routes through neighboring countries. This disruption has created a ripple effect on food supply chains across the region.

A Call for Re-Export

The CGB has responded by advocating for the re-export of Ukrainian sugar outside Europe. They argue that this course of action would help maintain balance in the European market and protect the interests of local producers. Meanwhile, the former Russian Ambassador to Türkiye, Alexey Erkhov, reported that there has been no progress in revitalizing the Black Sea food initiative and that the West continues to impose sanctions against Russian grain.

This unfolding situation serves as a stark reminder of the intricate balance and potential volatility of international trade, particularly within the agricultural sector. It also highlights the interconnectedness of global markets and the far-reaching impacts of regional conflicts and disruptions.

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