Business news from Ukraine

Business news from Ukraine

UKRAINE INCREASES FURNITURE EXPORT BY 50% IN Q1 2021

11 April , 2021  

Ukrainian furniture manufacturers in January-March of this year increased their furniture exports by 50% compared to the same period in 2019, to $247.4 million, while in the past five years (2015-2020) there was an annual increase of 13.5%, a member of the Ukrainian Association of Furniture Manufacturers (UAFM) Oksana Donska has said. “Due to COVID-19, the global supply chains have changed a lot. Ukrainian furniture is becoming more and more interesting for the international community of professional buyers,” she said at a press conference on the problems of timber market legislation organized by the RivneInvest agency in Kyiv.
According to her, today a transparent timber market is very necessary for Ukrainian furniture manufacturers.
“The furniture and woodworking industries of Ukraine create a product with high added value. Each hryvnia of wood value turns into UAH 30-50 of the cost of furniture supplied both to the domestic market and for export,” she said.
Donska said that today more than 100,000 people work in the furniture industry for more than 9,000 enterprises, and the export of Ukrainian furniture for the past five years has been growing by 13.5% annually. Furniture is exported to 119 countries, including Poland (more than 35% export), Germany (16%), Denmark, Austria, Romania, and France. Poland and Germany use Ukrainian furniture for further sale in the world.
“But compared to the same Poland, which has approximately the same forest resources, we export 20 times less – if Poland in 2020 exported furniture worth $14.8 billion (the third largest exporter in the world), then Ukraine for only $750 million (39th place),” Donska said.
She said that on June 15 through June 17 2021, Ukraine expects about 2,000 guests from 53 countries who will come to visit the Furniture of Ukraine Business Expo (FUBE-2021) organized by the UAFM with the support of the Ministry of Foreign Affairs and the Ministry for Development of Economy, trade and Agriculture.
“However, today the Association receives appeals from our members who complain about serious problems in their work due to the stagnation of the timber market. As a result, furniture makers do not receive furniture components on time, and contracts for the supply of finished furniture with retailers from Ukraine are broken. Ukraine’s reputation is on the line if it fails to implement contracts for the supply of furniture to the countries of Europe, Asia and America. If this situation continues for several more months, then Ukrainian enterprises will have to think not about development, but about survival,” Donska said.

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