Ukrainian honey exporters are losing their competitive edge in the EU market because of quotas.

Beehive, one of Ukraine’s largest honey exporters, sold 9,000 tons of product last year but now expects to sell only 5,000 to 6,000 tons this year. Tariffs have made Ukrainian honey too costly for European consumers, who are turning to cheaper options from China, India, and Turkey.

Previously, Ukrainian exporters sold an average of 8,000 tons of honey monthly from January to June, but that number has now dropped to just 3,500 tons. For several seasons, these exporters have been operating near the brink of profitability. The total cost to deliver to a kilogram of honey to a European customer is approximately $1.9, while the average honey price in Europe ranges between $2 and $2.1 per kilogram. Additionally, any exports to the EU that exceed the quota incur a 17.3% duty.

Beehive identifies three potential solutions to the crisis: consolidation around major players in the market, diversification through developing their own packaging and selling in local supermarkets and hastening European integration to secure a permanent duty-free status. Despite the challenging market circumstances, Beehive management remains open to expanding its production and acquiring another facility.