Ukraine since the beginning of the 2020/2021 marketing year (MY, July-June) and as of March 26, 2021 had exported 34.45 million tonnes of grains and legumes, which is 22.6% less than on the same date of the previous MY.
According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, 14.16 million tonnes of wheat, 15.64 million tonnes of corn, 4.06 million tonnes of barley have been exported.
As of the indicated date, 96,200 tonnes of flour were also exported.
As reported, the Ministry for Development of Economy, Trade and Agriculture of Ukraine in February predicted a decline in exports of grains and legumes in the 2020/2021 MY by 20.5% compared to the previous MY, to 45.4 million tonnes.
According to the Ministry of Agrarian Policy and Food, Ukraine exported 56.72 million tonnes of grain and leguminous crops in the 2019/2020 MY.
The Ministry of Foreign Affairs of Ukraine is introducing the title of Honorary Ambassador of Ukraine, which will be used to reward people whose efforts help popularize Ukraine and everything Ukrainian in the world, Ukrainian Foreign Minister Dmytro Kuleba said. “For the first time since Ukraine gained independence and the establishment of diplomacy of a modern independent Ukrainian state, the Ministry of Foreign Affairs introduces the title of Honorary Ambassador of Ukraine. This title will be granted to lawyers and promoters of Ukraine in the world. So, we will reward, and this will mark and motivate people who are most active promote and protect the interests of Ukraine in the world, without belonging to the system of public agencies of Ukraine or other countries,” the minister said at an online briefing on Friday.
He said that in this way they will reward really special people, “those whose warm hearts and persistent efforts help to popularize Ukraine and everything Ukrainian.”
“In fact, the honorary ambassador of Ukraine will be the highest honor in the field of public diplomacy in Ukraine. I believe that everyone who receives it will be proud that he has such a difference from Ukraine,” Kuleba said.
The minister said that the honor will be granted to individuals and legal entities, Ukrainian and foreign citizens, who contribute to the advancement of Ukraine in the world and strengthen its positive image.
According to him, in addition to the Ministry of Foreign Affairs, embassies and consulates of Ukraine abroad, organizations of foreign Ukrainians and any non-governmental public organization that has expertise in the international relations will also be able to nominate candidates for this title.
At the moment, 104 countries of the world are open for the travel of Ukrainians, where one can get, subject to certain rules, Minister of Foreign Affairs of Ukraine Dmytro Kuleba has said.
“Now 104 countries are open for Ukrainian citizens. Let me remind you that on February 19 there were 95 such countries at the briefing, that is, in a month we added nine countries to this list. Some 104 countries where, subject to certain rules, Ukrainians can now get to,” he said at an online briefing.
Kuleba noted that Iceland, Montenegro, Haiti, Guyana, Bangladesh and Gabon have reopened their borders for Ukrainians.
“The conditions of entry, of course, may include compliance with anti-epidemic requirements. Therefore, I ask you to properly check all the rules of entry, you can do this on our website, which we have created for you – tripadvisor.mfa.gov.ua,” the minister said.
China asks Ukraine to properly resolve the conflict issue surrounding the purchase of Motor Sich shares by Chinese investors, Chinese Foreign Ministry Spokesperson Hua Chunying said at a briefing, answering a question from the RIA Novosti Russian state agency about the reaction to possible nationalization enterprises by decree of the President of Ukraine.
“China asks the Ukrainian side to protect the legitimate rights and interests of Chinese enterprises and investors in accordance with the law and properly resolve the relevant issues,” Chunying said in a transcript of the March 25 briefing on the Chinese Foreign Ministry’s website.
The spokesperson said that the Foreign Ministry was informed about the relevant documents on Motor Sich.
Myronivsky Hliboproduct agricultural holding (MHP) received a net loss of $133 million in 2020 versus a net profit of $215 million in 2019, mainly due to exchange rate losses of $204 million due to the annual depreciation of hryvnia by 16%, and the company’s revenue decreased by 7%, to $1.91 billion. According to the quarterly financial statements of the holding, released on London Stock Exchange on Wednesday, its adjusted EBITDA and operating income decreased by 7%, respectively, to $395 million and $201 million, while the profitability of sales (EBITDA margin) remained at the 2019 level of 21%.
The agricultural holding noted the impact of exchange rate losses in the amount of $204 million on the company’s financial indicators, saying that excluding exchange rate differences, the company’s net profit in 2020 would have been $71 million against $30 million in 2019.
MHP said that in 2020, export revenue decreased by 9.1%, to $1.015 billion, which is 53% of total revenue (56% of total revenue in 2019).
The agricultural holding said that the situation in export markets has deteriorated significantly due to several outbreaks of bird flu in early and late 2020 and the effect of coronavirus (COVID-19) pandemic throughout the year.
In the fourth quarter of 2020, MHP reduced its net loss by 60%, year-over-year, to $24 million, its total revenue decreased by 10%, to $497 million, and export revenue decreased by 19.3%, to $255 million (51% of total revenue).
MHP’s gross profit in the fourth quarter of 2020 increased by 44%, year-over-year, to $75 million, operating profit amounted to $7 million against an operating loss of $2 million, however EBITDA decreased by 10%, to $63 million.
Chief Executive Officer of the company Yuriy Kosyuk said in the statement that the company managed not only to adapt to the serious challenges of 2020, but also to become more resilient and take advantage of new opportunities. He said that as part of the strategic shift announced a year ago towards more customer-oriented products, including with additional processing and added value, for the domestic market of Ukraine and some export markets, the company launched a number of pilot projects for culinary transformation, including Meat Market convenience stores and DönerMarket houses.
“These offerings are at an early pilot stage and I look forward to updating you on progress in due course as this model is rolled-out more extensively over the next several years, transforming the group’s sales […] to a branded value-added base,” Kosyuk said.
According to the report, revenue for the company’s main chicken production segment in 2020 decreased by 5%, to $1.298 billion, and gross profit due to a decrease in meat prices by 30%, to $191 million, EBITDA by 31%, to $194 million. In the fourth quarter, sales in this segment decreased by 3%, to $328 million, while gross profit and EBITDA due to higher prices for cereals fell 66.7%, to $15 million and $14 million, respectively.
In the crop production segment, MHP’s revenue fell by half in 2020 due to a lower harvest, to $134 million, but due to price increases, gross profit increased 3.2 times to $94 million, and EBITDA by 38%, to $150 million.
In meat processing, sales over 2020 decreased by 3%, to $144 million, while gross profit and EBITDA remained at the same level of $19 million and $20 million, respectively. In the fourth quarter, revenue in this segment decreased by 10%, to $38 million, gross profit by 44%, to $5 million and EBITDA by 38%, to $5 million.
At the same time, the company managed to achieve significant improvement in the performance of Slovenian Perutnina Ptuj and its operations in Croatia and Serbia, which are reported as a European operating segment. Its revenue in 2020 increased by 24%, to $335 million, gross profit by 21%, to $93 million, EBITDA by 25%, to $55 million. In the fourth quarter, sales increased by 12%, to $87 million, gross profit by 5%, to $22 million, and EBITDA remained at $15 million.
In terms of other indicators, the company said that its capital investments in 2020 decreased by 30%, to $79 million, available cash from $341 million to $218 million, and net debt increased from $1.139 billion to $1.244 billion.
In its forecast, MHP said the prospects for the development of poultry farming in 2021 will be very difficult, given the ongoing COVID-19 crisis, weak economic conditions, high feed prices, a very active winter season for bird flu and global oversupply, however the company is confident in its business.
“Transformation to a culinary company: MHP is expanding its focus. The experience of global poultry producers supports MHP’s strategic shift to a culinary company. Moreover, we are transforming our relationship with retail, HoReCa and franchisees in order to reach more customers and meet their evolving needs by providing them with new safe and high quality products. Current challenges have led us to accelerate this strategic shift,” the company said in the report.
The company said that its continued vertical integration provides a significantly lower cost base compared to peers in the industry, as well as improved quality control and better biosecurity of poultry stock, and added that the demand for poultry meat is growing globally along with the decline in demand for red meat.
With regard to possible mergers and acquisitions (M&A), the agricultural holding indicates that it continues to monitor global developments and the potential for mergers and acquisitions. “MHP is well positioned to become an active participant in the ongoing consolidation of the industry,” the company said in the report.
MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat products. MHP supplies the European market with chilled half-carcasses of chickens, which are processed, including at its factories in the Netherlands and Slovakia.
National bank of Ukraine’s official rates as of 26/03/21
Source: National Bank of Ukraine
