Page 50 - UKRRptFeb24

The expected sugar production at the end of the year is 1.7-1.8 million tons, with domestic consumption at one million tons. The leading destination for Ukrainian sugar is the EU market, and the main producers and exporters are Radekhiv-Zukor, Ukrprominvest-Agro, and Astarta. Therefore, it can be expected that in the coming months, in the absence of restrictions from EU countries, Ukrainian sugar exports will remain active. However, Polish sugar beet producers have appealed to the new government to ban the import of Ukrainian sugar into Poland, claiming that it poses a threat to their business. At the same time, French sugar producers demand the re-exportation of Ukrainian sugar outside of Europe.
Ukrainian IT exports began to grow at the end of the year. According to the NBU, in November 2023, Ukrainian IT companies exported services worth $564M, $35M more than in October, and $43M more than in September 2023. However, compared to November 2022 ($580M), the volume of IT exports decreased by $16M, or by 2.8%. Also, this amount is $111M less than in November 2021 but $117M more than in November 2020. Among the countries that provided the most revenue are the US, Malta, and the UK. At the same time, in 11 months of 2023, the export of IT services from Ukraine amounted to $6.1B, which is 7.3% or $482M less than in the same period of 2022. As a reminder, Ukrainian IT exports reached a record $7.34B in 2022. Also, the IT industry paid ₴32.2B in taxes to Ukraine’s budget, and export volume increased by $400M compared to the pre-war year of 2021.
The export of sunflower oil reached a two-year record. In December of the 2023-2024 marketing year, Ukraine exported almost 672,000 tons of sunflower oil, which exceeded the November figure by 25% and became the highest monthly shipment volume since January 2022. This figure also became the second largest for December in the entire history of sunflower oil exports. Romania and Turkey became the leading importers, with 25% and 12% respectively.
Exports of milk and dairy products in 2023 fell by 25% compared to 2022 due to the restoration of demand for dairy products in the domestic market amid the return of Ukrainians from abroad, Project Manager for Relations with Processors at the Association of Milk Producers Olena Zhupinas has said. Thanks to this trend, domestic consumption of these products may double in 2024, the representative of the Association said. Exports of milk and dairy products in 2023 fell by 25% compared to 2022 due to the restoration of demand for dairy products in the domestic market amid the return of Ukrainians from abroad, Project Manager for Relations with Processors at the Association of Milk Producers Olena Zhupinas has said. Thanks to this trend, domestic consumption of these products may double in 2024, the representative of the Association said.
Zhupinas emphasized that in 2023, domestic demand in Ukraine resumed due to the return of Ukrainians from abroad. As a result, domestic consumption grew by 14% compared to 2022. Milk from export dairy products flowed into the production of fresh produce and cheeses for the domestic market. In addition, the country had a serious domestic shortage of butter, which led to record imports. As a result, in 2023, there was a deficit in trade balance for dairy products.
Ukraine's largest grain market operator is asking USAID to expand its railroad fleet. The Nibulon company wants to expand its railcar fleet by 250 units and has asked USAID to finance this initiative. Mykhailo Rizak, the grain
50 UKRAINE Country Report February 2024 www.intellinews.com