Global food prices in 2022 compared to 2021 rose by 14.3%, according to the FAO (Food and Agriculture Organization of the United Nations).
The FAO food price index was 132.4 points in December, down 1.9 percent from November. The decline has been going on for nine months. Compared to December 2021, the index was 1 percent lower. “The decrease in the index in December compared to November was due to a sharp fall in global vegetable oil prices along with some declines in grain and meat prices. However these were partly counterbalanced by modest increases in sugar and dairy prices,” the FAO survey said.
Cereal price index in December compared to November decreased by 1.9%, but it was 4.8% higher than in December 2021. For 2022, the Cereal Price Index reached a new record of 154.7 points and was 17.9% higher than in 2021. It was also 8.8% higher than the highest annual average in 2011. In 2022, global corn and wheat prices reached a new record high and were 24.8% and 15.6%, respectively, above the 2021 average.
The vegetable oil price index fell 6.7% in December compared to November and was the lowest since February 2021. This is due to the fall in world prices of palm, soybean, rapeseed and sunflower oils, explained in the review. In addition, a decrease in world quotations of vegetable oils was contributed by reduction of prices for crude oil.
At the end of 2022, the vegetable oil price index was 187.8 points, which is 13.9% higher than in 2021, and was the highest annual average.
The price index for dairy products in December was 1.1% higher than in November. It rose after five months of decline and was 7.9% higher than in December 2021. At the end of 2022, the index was 142.5 points, up 19.6% from 2021. This is the highest figure since 1990.
The Meat Price Index in December was 1.2% lower than in November. The decline has been going on for six months. But compared to December 2021, the index was 2.5% higher. “The decrease in the index in December was due to a drop in world beef and poultry prices, which was partially offset by an increase in pork and lamb prices,” the survey said. At the end of the year, the index was 118.9 points, 10.4 points higher than in 2021. It was the highest since 1990.
The sugar price index in December compared to November rose by 2.4%. The increase continues for a second month, with prices reaching their highest level in six months. At the end of 2022, the index was 114.5 points, up 4.7% from 2021. This is the highest figure since 2012.
The FAO Food Price Index is a weighted average that tracks the international price movements of five major food commodity groups.
LLC “Altair-Aktiv” owning 89.78% of shares of PJSC “Insurance company “Ultra Alliance” (formerly IC “Ultra” Kiev) reduced its stake to 0%, according to official information from the National Commission on Securities and Stock Market.
Also, it is noted that the shareholders of the company became Andrew Goreltsev, who owns 40.94% shares of the insurer and Viktor Moskalenko – 48.84%.
It was also informed that “Finance Group” LLC, which owned 9,97% earlier, has kept its stock at the same level.
The report also clarifies that Victor Moskalenko owns 54.4% of the authorized capital in “Altair-Aktiv” LLC, Andrei Goreltsev 9.98%, Leonid Parashchuk 7.43%, Olga Chuprina 9.41%, Igor Rudyak 6.69%, Liudmila Filinovskaya 6.69%, Liudmila Shchurova 5.40% of the authorized capital.
As reported, IC Ultra provides insurance services since 2004 and has 17 licenses for compulsory and voluntary types of insurance.
October 2, 2022 National rating agency “Rurik” has confirmed the long-term borrower rating of IC “Ultra Alliance” at level uaAA of investment category with the forecast “development” and insurer financial strength rating (stability) at level uaAА of investment category.
Russian attacks on critical infrastructure facilities in October accelerated the fall in GDP to 39% from October 2021, which is worse than in September-August – 35%, said First Deputy Prime Minister – Minister of Economy of Ukraine Yulia Svyrydenko at a meeting with representatives of the American media.
The fall in Ukraine’s GDP in 2022 could be 33-35%, Finance Minister Serhiy Marchenko said at a briefing in Kyiv.
Massive Russian missile strikes on the Ukrainian energy infrastructure, which began in October, stopped the trend of slowing down the decline in the Ukrainian economy, its forecast for the year has been worsened from 32% to 35%, the ICU investment group reports in an updated macroeconomic forecast.
Dragon Capital investment company, one of the leaders in the Ukrainian market, worsened its forecast for a decline in real GDP this year by 2 percentage points, to 32% and retained its forecast for a decline in 2023 by another 5%, despite the improvement in the key assumption about the course of the war.
Exports of goods from Ukraine in October fell by 8.2% compared to September, to $3.805 billion, while imports rose by 2.6%, to $4.615 billion, Deputy Economy Minister and Trade Representative Taras Kachka said.
The deficit of Ukraine’s foreign trade in goods in January-September 2022 increased 2.4 times compared to the same period in 2021, to $5.419 billion from $2.264 billion.
The growth of consumer prices in Ukraine in October 2022 accelerated to 2.5% from 1.9% in September, 1.1% in August and 0.7% in July.
The money supply in Ukraine (M3), after growing by 0.8% in September, added another 2.3% in October, or UAH 52.6 billion, to UAH 2.330 trillion, the National Bank of Ukraine (NBU) said.
Ukraine, which has achieved a deferral of repayment and payment of a significant part of external obligations to private creditors and the Paris Club, may enter into negotiations on the final terms of restructuring for the state debt closer to the end of the war, Deputy Head of the President’s Office Rostyslav Shurma has said.
Economic Monitoring’s Project Manager – PhD in Economics, Maksim Urakin
Ukrainian agricultural producers in 2022 attracted 43.65 thousand loans totaling 95.47 billion UAH under the program “Affordable credits 5-7-9”, according to the website of the Ministry of Agrarian Policy and Food of Ukraine on Monday.
It says that from the middle of March to May 31, 2022 a special program of concessional lending for the sowing season, under which farmers could borrow up to 60 million hryvnia at 0% per annum, and the state guaranteed 80% of funding. During the period of its operation the agrarian entrepreneurs received 24,72 billion UAH of credits. From June 1, 2022, the usual program “5-7-9” was applied for loans to agricultural sector.
The leaders in terms of credit amounts during this period were the Kiev region – 15,5 billion UAH, Vinnitsa region – 10,2 billion UAH, Kirovograd region – 8,6 billion UAH, Dnepropetrovsk region – 6,8 billion UAH and Odessa region – 6 billion UAH.
PrivatBank, Raiffeisen Bank, Ukrgasbank, Oschadbank, Ukreximbank, Credit Agricole and PUMB granted the most loans to agrarians.
The agency also recalled that the Ukrainian government has decided to provide financial support to micro, small and medium enterprises to restore partially or completely destroyed as a result of military operations of production facilities. Agribusinesses can also count on such support.
Besides, banks credit business for energy supply: purchase and installation of equipment ensuring uninterrupted work of business energy systems. Lending for such investments is made at an interest rate of 0% per annum.
On January 04, the Kyiv National University of Civil Engineering and Architecture hosted the official presentation of awards of the National Guard of Ukraine to the team and partners of the Charitable Foundation “Reconstruction and Development of Ukraine” for the systematic assistance they have provided and are providing to our defenders.
In the framework of cooperation with the National Guard, the Charitable Foundation “Reconstruction and Development of Ukraine” and its partners provided material and technical equipment, medical supplies and food to support our soldiers who are on the defensive positions.
“The defenders of the National Guard of Ukraine are sincerely grateful to the Charitable Foundation “Reconstruction and Development of Ukraine” and its President Artem Goncharenko for the contribution they make to the logistical support of our soldiers in these difficult times. For example, the tents that were transferred to the positions of the forces, in such difficult weather conditions, were very useful to our defenders. And this is just one of the examples of practical assistance that has been going on for months. The unity of the armed forces and civil society today is the key to our victory. On this day, I am pleased to acknowledge the people who help and will help the National Guard to achieve it,” said Major Serhii Petkov, legal adviser of the 3101 unit of the National Guard, during the awarding ceremony.
The National Guard of Ukraine awarded team members and partners of the Charitable Foundation “Reconstruction and Development of Ukraine”:
Goncharenko Natalia – Head of the National Institute of Regional Development
Butkaliuk Viacheslav – journalist
Voloshkina Olena – Professor, Doctor of Science
Hamotskyi Roman – architect, vice president of the International Association of Transfer and Technology
Zavalnyuk Vitaliy – representative of the international creative center I-Dolina
Kreknina Olena – Deputy Marketing Director of AXOR Industry
Kulakov Igor – Chairman of the NGO “New Lviv”, Chairman of the Board of the Agency for Reconstruction of Ukraine
Stanko Andriy – representative of the Association of Education and Science of Ukraine
Tsytsylina Iryna – Head of the NGO “Culture and Heritage of Ukraine”
Shcherbak Andriy, volunteer, founder of TM “Zeleno”
Volunteers of the Foundation:
Dzhuryn Maria
Zavalnyuk Roman
Bilash Hanna
Boldak Roman
Motrenko Svitlana
Savchenko Diana
Slisarenko Ilya
Andriy Stanko
“Supporting our defenders is one of the priorities of the Foundation for Reconstruction and Development of Ukraine and its partners. And I am very pleased that our efforts are appreciated by the National Guard. In fact, we are grateful to our soldiers for bravely defending our country. I want to assure that the Foundation will continue to support our defenders and do small things and large humanitarian projects aimed at our soonest victory. I also want to thank my entire team for their hard daily work, which contributes to this cause,” said Artem Honcharenko, President of the Charitable Foundation “Reconstruction and Development of Ukraine” during the award ceremony.
Recall that the charitable foundation “Reconstruction and Development of Ukraine” continues to raise funds for 52 mobile hospitals for the military at the forefront. The first mobile hospital has already been delivered to the Armed Forces. Only one such hospital can save up to 100 lives of our defenders every day.
As you know, a mobile hospital is a full-fledged hospital on wheels, equipped with modern medical equipment. The medical center allows to provide urgent surgical intervention directly near active combat operations. Two medical teams can work simultaneously in the mobile hospital. This project is implemented by the Charitable Foundation “Reconstruction and Development of Ukraine” together with the doctors of the military hospital who will go to the front line to save lives.
Oil prices rise on Monday after a significant decline in the past week.
The price of March futures for Brent oil on the London ICE Futures exchange by 7:10 qoq on Monday is $79.45 per barrel, which is $0.88 (1.12%) higher than the closing price of the previous session. As a result of trading on Friday, these contracts fell by $0.12 (0.2%) to $78.57 per barrel.
The price of futures for WTI oil for February in electronic trading on the New York Mercantile Exchange (NYMEX) increased by this time by $0.89 (1.21%), to $74.66 per barrel. By the close of previous trading, the cost of these contracts increased by $0.1 (0.1%) to $73.77 per barrel.
As a result of the past week, Brent fell by 8.5%, WTI – by 8.1%.
Traders are evaluating the prospects for oil demand in China, where the incidence of COVID-19 has increased since the lifting of quarantine restrictions. In addition, fears of a downturn in the global economy remain in the context of the ongoing tightening of monetary policy by the world’s largest central banks.
Pressure on the oil market last week was exerted by the strengthening of the US dollar, lower natural gas prices, as well as the risks of a recession in the world, said Troy Vincent, chief analyst at DTN.
“Warm weather and falling gas prices dampen expectations that consumers will switch from gas to oil this winter,” Market Watch quoted Vincent as saying. “The increase in economic activity in China following the lifting of anti-COVID restrictions is the main factor that could push oil demand to growth. However, there remains serious uncertainty about the timing of the return of the PRC economy to normal activity.”
