Business news from Ukraine

STATE AND STAGE GUARANTEED DEBT OF UKRAINE IN 2015 (MLN UAH)

Source: The Ministry of Finance

Source: The Ministry of Finance

Source: The Ministry of Finance

Source: The Ministry of Finance

DANONE WITH PARTNERS PLANS TO BRING NUMBER OF FAMILY DAIRY FARMS IN UKRAINE TO 206

KYIV. March 9 (Interfax-Ukraine) – Danone, a large dairy producer in Ukraine, jointly with partners, plans to boost the number of family dairy farms in the country to 206 by late June 2017, Director of the purchase department at Danone Iryna Kukhtina said in Kyiv last week.

“We have an idea of creating 206 family farms by late 2017, and people can come to the farmer, see everything and take as a pattern,” she said, adding that today 60 farms have been created.

Kukhtina said that the total volume of the cooperative and family farm development project financing in the period from 2010 to 2017 would be EUR 6.5 million. At present, the third phase of the project focused on the creation of the large number of family farms with 10-20 cows is being realized. Farmers that are taking part in the project reconstruct their cow farms or build a new one for some 10 cows using own money, while equipment (milking, cooling equipment, drinking, lighting and ventilation systems) are provided as part of the project.

A total of 17 cooperatives have been created. Farmers can become members of cooperatives if they have at least five or six cows.

“Last week a first cooperative that consists only of family farms (five) with the number of cows from five to 30 appeared in the south. Young persons aged around thirty are involved in it,” she said.

She said that at present, the cooperatives mainly produce second class milk. It is planned that they will produce first class milk by the completion of the project in 2017 and will provide for 10% of raw milk supplies to Danone.

In June 2015, USAID has joined the project, and the project was extended to one year.

“We planned to open 96 farms in the third phase of the project, but when USAID joined the project, it was extended for one year, and its value grew by EUR 1.4 million. This includes the money of the Canadian government, our partner,” Kukhtina said.

Danone is realizing the project to develop family dairy farms and cooperatives in Ukraine jointly with International Charitable Organization Community Wellbeing with support of Danone Ecosystem Fund and the Canadian government, USAID via Dnipropetrovsk Agricultural Advisory Service LLC.

SEA PORT AUTHORITY OF UKRAINE POSTS 80% RISE IN REVENUE IN 2015

KYIV. March 4 (Interfax-Ukraine) – The Sea Port Authority of Ukraine saw an 80% rise in revenue in 2015, to UAH 8.074 billion.

Sea Port Authority Head Andriy Amelin said at a press conference on Thursday that revenue also grew thanks to the exchange rate difference.

He said that the authority’s profit was UAH 3.847 billion. He did not present the comparative data.

Amelin said that capital investment of the authority last year were only UAH 421 million. It is linked to a delay in the adoption of the authority’s financial plan – only in October.

According to a report on the operation of 100 largest state-run enterprises of Ukraine for the period of January-September 2015 posted on the website of the Economic Development and Trade Ministry of Ukraine, Sea Port Authority of Ukraine saw UAH 4.9 billion of net revenue in January-September 2015, which is 80% up year-over-year. The authority saw a rise of 2.8 times in net profit over the period, to UAH 3.4 billion, and net cost-effectiveness grew to 67.9%, while a year ago it was 44%.

The financial plan for 2016 sets revenue of UAH 7.929 billion and net profit of UAH 3.06 billion.

Sea Port Authority of Ukraine is a state-run enterprise that supervises the functioning of 13 seaports in Ukraine. The enterprise was founded in 2013. It owns port infrastructure facilities. 80% of revenue is denominated in the U.S. dollars, while the hryvnias in its expenses prevails.

YAHOTYN BUTTER PLANT SEES 2.4 TIMES RISE IN NET PROFIT IN 2015

KYIV. March 4 (Interfax-Ukraine) – Public joint-stock company Yahotyn butter plant (Kyiv region), a large milk processing company in Ukraine, saw a 2.4 times rise in net profit in 2015, to UAH 60.745 million.

According to a company report on holding a general meeting of its shareholders scheduled for April 12, its assets grew by almost 19%, to UAH 628.394 million and undistributed profit rose by 46%, to UAH 197.328 million.

The plant fully liquidated long-term liabilities last year, which were UAH 2.994 million as of late 2014, while current liabilities rose by 2%, to UAH 283 million.

Yahotyn butter plant is part of Milk Alliance, created in June 2006 as a holding company with a charter capital of UAH 23.5 million, with long-term financial investment accounting for 99.9%.

Milk Alliance unites Pyriatyn cheese factory, Bashtanka cheese factory, Horodenka, Trostianets, Novoarkhanhelsk and Zgurivka cheese factories, Zolotonosha butter factory, as well as Varvamaslosyrzavod and Etalonmolprodukt, and Etalon trade house sales companies.

CHERVONA ZIRKA AGRICULTURAL MACHINERY PRODUCER PLANS TO BOOST SALES BY 25% IN 2016

KYIV. March 4 (Interfax-Ukraine) – Public joint-stock company Chervona Zirka, a large agricultural machinery manufacturer in Ukraine, part of Elvorti Group, plans to boost production and sales by 25% in 2016 from a year ago.

The company said in a press release that in 2015 its sales grew by 71%, to UAH 654.81 million, and in units sales rose by 13.2% or 550 units, to 4,717.

The share of exports of total sales in 2015 reached 55.9% compared to 64.9% in 2014, while supplies to the European Union market, particularly, Bulgaria, Lithuania, Hungary, Romania, Poland, the Czech Republic and Slovakia, rose by 40%.

The press service said that last year capital investment in the form of own funds almost doubled, to UAH 140.4 million. Equipment worth UAH 20.4 million was bought.

Chervona Zirka started production of Elex 81A excavator last year and this year it is planned to boost production of sowing machines Vega-16, pneumatic sowing machines Orion and Alcor.

It is planned to bring machines designed for the requirements of European farmers to the EU market, in particular, universal pneumatic sowing machines Vesta-6, sowing machines Vega-6 and Astra-3 grain seeder.

The company sent UAH 40.851 million to the budgets of all levels.

EARLY SPRING CROPS SOWED ON 45,000 HA IN UKRAINE – MINISTER

KYIV. March 3 (Interfax-Ukraine) – Taking into account good weather conditions, sowing of early spring crops has been started in three regions of Ukraine and 45,000 ha has been sowed or 2% of the target, Agricultural Policy and Food Minister of Ukraine Oleksiy Pavlenko wrote on his Facebook page late on Monday.

The minister said that spring barley was sowed on 34,000 ha or 2% of the target, oats on 11,300 ha (6%) and peas on 10,000 ha (6%).

Crops on 23,900 ha (14% of the target) were sowed in Odesa region, 11,300 ha (6%) in Kherson region and 9,600 ha (6%) in Mykolaiv region.

According to tentative data from the regions, it is planned to sow crops for the 2016 harvest at the level of 2015 – 26.7 million ha.