Molasses market in Belarus

Earlier Report Observations

The Belarusian molasses market opened the period at 80.3 thousand tons in 2018, with production dominated by state-owned sugar refineries like the Slutsk Sugar Refinery. Internal market volume then contracted to 67.4 thousand tons in 2019. The COVID-19 pandemic in 2020 reduced sugar beet processing and molasses output, but a concurrent drop in exports increased domestic availability, pushing the market volume up to 81.7 thousand tons.

Market volume surged to a peak of 98.5 thousand tons in 2021. A sharp reversal followed in 2022, with the volume falling to 66.6 thousand tons. This decline was primarily driven by a significant increase in molasses exports via the Belarusian Universal Commodity Exchange (BUCE), fueled by strong European demand for feed additives.

In 2023, the market recovered to 84.8 thousand tons. This growth was supported by the diversification of molasses use within the country, including the state-owned concern Belgospishcheprom expanding production of products containing molasses, and the start of construction on a major grain processing complex that will use molasses as raw material. Legislative changes in 2024 introduced new rules for price regulation and trade, while exports via BUCE continued to grow with molasses prices rising by 34%.

Production molasses in Belarus

In kind, 2017-2020, K t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

Molasses production in Belarus declined after two years of growth. In 2019, production reached its peak at 198.0 K t, but by 2020 it had fallen to 191.6 K t, marking a slight decrease of 3.2%. Over the period from 2017 to 2020, production increased by 2.9%, which translates to an average annual growth rate of 1.0%. The most significant year-on-year increase occurred in 2018, with a rise of 6.2%.

Annual dynamics of production in Belarus in kind, 2017-2020, K t

Exports molasses from Belarus

Exports in kind, K t

The data shows irregular changes, reflecting a volatile market environment. Exports reached their lowest point in 2017 and peaked in 2019, with a two-fold difference between these years. In 2020, molasses deliveries from Belarus totaled 113.8 K t, which is 13.2% lower than the previous year. The maximum value was recorded in 2019 at 131.1 K t. The largest increase occurred in 2018, with a jump of 87.4%.

Annual dynamics of product's exports from Belarus in kind, 2017-2020, K t

From 2017 to 2020, the principal destinations for Belarusian molasses exports in kind were Lithuania, accounting for 34.2% of exports, Norway with 23.6%, and Germany at 18.2%. Together, these three countries represented 76.0% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Belarus in kind, 2017-2020

Exports in value, K $ US

Cross-border shipments of molasses from Belarus increased for the third consecutive year. In 2020, exports stood at 8 561 K $ US, reflecting a significant rise of 14.4% compared to 2019. Between 2017 and 2020, exports grew by 141%, equating to an annualized rate of 34.1%.

Annual dynamics of product's exports from Belarus in value, 2017-2020, K $ US

Over the period from 2017 to 2020, Lithuania, Norway, and Germany consistently held leading positions in the country structure of Belarusian molasses exports in value terms. Lithuania accounted for 33.4% of exports, Norway for 22.9%, and Germany for 17.3%, jointly making up 73.6% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Belarus in value, 2017-2020

Imports molasses to Belarus

Imports in kind, K t

There were noticeable fluctuations in market performance during this period. Imports hit a low in 2019 and a high in 2017, varying by 36 times between these years. In 2020, cross-border shipments of molasses to Belarus amounted to 3.9 K t, up by 797.8% compared to 2019. The minimum value was recorded in 2019 at 0.4 K t, and the largest decline also occurred in that year, at 94.2%.

Annual dynamics of product's imports to Belarus in kind, 2017-2020, K t

From 2017 to 2020, Russia was the main source for molasses imports to Belarus, consistently absorbing 100.0% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Belarus in kind, 2017-2020

Imports in value, K $ US

Volatility characterized the market behavior during these years. Imports dropped to their minimum in 2019 and climbed to their maximum in 2017, showing a 12.1-fold shift. In 2020, molasses imports to Belarus totaled 426 K $ US, corresponding to a dramatic rise of 362.1% compared to the previous year. The minimum value was recorded in 2019 at 92 K $ US, and the largest decline also occurred in that year, at 73.4%.

Annual dynamics of product's imports to Belarus in value, 2017-2020, K $ US

Over the period from 2017 to 2020, molasses imports to Belarus were largely oriented towards Russia, whose share in total imports in value terms reached 99.8%.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Belarus in value, 2017-2020